Tracking business expenses can be a time-consuming and tedious task, especially if you’re still doing it manually. Not only does it take up a lot of your time, but it can also be prone to errors and omissions. That’s why it’s important to consider automating your expense tracking process. By using tools and software that can automatically track and categorize your expenses, you can save time, reduce errors, and get a clearer picture of your business’s financial health.
Here are some tips on how to track business expenses automatically:
Use a business credit card
One of the easiest ways to track business expenses automatically is to use a business credit card. Most business credit cards come with online account management tools that allow you to view and categorize your purchases. You can also set up alerts to receive notifications when a purchase is made or if your balance reaches a certain level.
Use expense tracking software
There are many software options available that can help you track and manage your business expenses. Some popular options include QuickBooks, Xero, and Zoho Books. These tools allow you to enter your expenses, categorize them, and create reports to help you better understand your business’s financial health. Some of these tools also have features that allow you to connect your business bank accounts and credit cards to automatically import and categorize your expenses.
Use a receipt-scanning app
If you’re still receiving physical receipts for your purchases, you can use a receipt-scanning app to digitize and track them. These apps allow you to take a photo of your receipt, which is then automatically uploaded and stored in the app. You can then categorize and track your expenses using the app. Some popular receipt-scanning apps include Expensify and Shoeboxed.
Use a business expense-tracking app
There are also many business expense-tracking apps available that can help you track and manage your expenses on the go. These apps allow you to enter your expenses as you incur them, which can be especially helpful if you’re constantly on the move. Some popular business expense-tracking apps include Concur and Expensify.
Set up automatic categorization
Many expense tracking tools and software allow you to set up automatic categorization of your expenses. This means that your expenses will be automatically sorted into specific categories based on the type of purchase or vendor. For example, all purchases made at a specific retailer or restaurant might be automatically categorized as “food and entertainment.” This can help you get a better understanding of where your money is going and make it easier to create reports and track your expenses.
Use a virtual assistant
If you don’t have the time or resources to track your expenses manually, you can consider hiring a virtual assistant to do it for you. Virtual assistants are professionals who can help you manage your business tasks remotely, including tracking your expenses. They can help you enter your expenses into a spreadsheet or software program, categorize them, and create reports.
Overall, automating your business expense tracking process can save you a lot of time and hassle. By using tools and software that can automatically track and categorize your expenses, you can get a clearer picture of your business’s financial health and make better-informed decisions about your finances. Whether you use a business credit card, expense tracking software, a receipt scanning app, a business expense tracking app, or a virtual assistant, there are many options available to help you automate your expense tracking process.