Why Expense Reporting is So Important for Small Businesses

Why Expense Reporting is So Important for Small Businesses

Everyone knows that starting and running a small business is a labor of love. It’s not a job – it’s a passion. But with all the focus on the end-game product or service, it’s easy to forget about the smaller tasks necessary to run a successful business – things like admin and record-keeping and invoicing. Using an expense reporting system can help automate some of the most onerous and time-consuming tasks and set your small business up for success. It’s a small but worthwhile investment that every small business owner needs to make. Here’s why. 

Expense Reporting Reduces Administrative Time

A small business owner has a lot to keep track of, often without sufficient administrative staff as funds are focused on more profitable things like sales staff, product development, or marketing initiatives. Using an expense reporting system automates many financial tasks and reduces the man-hours spent on things like invoicing accounting, and staff reimbursements. The right expense reporting system streamlines many time-consuming and duplicative tasks by automatically turning client reimbursable expenses into invoices, seamlessly integrating with your existing accounting or payroll software to prevent double manual entries, and virtually eliminating human errors which are costly (in both time and money) to fix.

Expense Reporting Organizes Your Financial Information

Good organization is essential for a small business to function well. Using an expense reporting system makes this easy! Upload receipt photos to create digital records instead of paper files, and attach the record to the correct month, project, and line item for accurate accounting. Not only does this help with client billing and project management, but when tax time rolls around you’ll have everything you’ll need for your tax accountant. 

Expense Reporting Helps Monitor Profitability

According to the Small Business Administration, one in five small businesses fails within its first year. Half fail within their first five years, and 70% close after ten years. Twenty-nine percent of these closures are caused by a lack of cash flow, so you can see why it’s important for a small business owner to keep close tabs on their company’s finances.

An expense reporting system not only keeps your financial records organized, but it helps you analyze them, too. Choose a platform that includes automated reports to help you assess profitability, control costs, and make data-driven decisions that will help your business thrive.

Expense Reporting Keeps Employees Happy

A company is only as good as its team members, and that’s especially true for small businesses. In a company that requires its employees to front the money for things like travel or client expenses, timely reimbursement is essential. An expense reporting system allows employees to upload receipts and log expenses quickly and easily, eliminating the lengthy paper-form process that can be rife with delays, illegible numbers, and lost receipts.

Manage Your Expenses with MindSalt

MindSalt Time & Expense is the expense reporting solution small businesses need! With real-time numbers, mobile compatibility, and integration with popular software programs, MindSalt is the platform your employees will appreciate using as much as you do. Sign up for a 30-day trial and see what MindSalt can do for you and your business!