Whether you are trying to save money, starting a home business, or running a small company, you will need a plan to manage expenses. This may seem obvious, but it’s amazing how many people and organizations don’t follow an expense management plan. Expense management techniques are necessary to control cash flow, compliance, and to prepare for taxes. With expenses properly under control you better determine your business needs to ensure you meet your business objectives.
Here are steps you need to have on your expense management checklist.
- Set a budget. Make sure you know how much you want to or are able to spend within a timeframe. Usually this is set on a monthly basis, but you can set it to daily, weekly, or even quarterly.
- Track Expenses. After your budget is set, you need to track your expenses. One of the best way to track expenses is to track your receipts. You can keep all your receipts and add up the totals for your set timeframe. This can be resource intensive, so it is worth it to automate this process as much as possible using an expense and receipt tracking tool.
- Check spending on a regular basis. Review where your spending pain points are. Most receipt tracking tools categorize merchants and expenses so you can easily determine the areas that you spending in. Find ways to reduce spending in areas that are unnecessarily high.
- Analyze. After the timeframe is up, analyze your spending against your budget goals. Revise your budget as necessary based on need and prior time frame’s results.
- Repeat. Repeat this cycle constantly and adjust as necessary.
Setting and monitoring a budget is best way to keep expenses under control. There are many expense management tools that help monitor expenses. Itemize is the easiest and fastest receipt tracking app, allowing you get the most out of your paper and digital receipts.