You need to pay attention to financial activities like expense management or tax auditing to keep your business running at a profit. Neglecting such activities could spell doom for the growth of your organization.
However,coordinating and managing business finances can prove challenging. You’ll handle petty cash management, billing and credit, financial analysis, and expense accounting, among other crucial tasks. Besides, you may still be looking for an investor to fund your growth and you might not be able to afford to hire full-time accounting staff.
In that case,understanding several aspects of your organization’s expense management, possible problems, and how to mitigate or solve them would be crucial.
Problem: Difficulty in Coordinating Multiple Business Activities Remotely
Vital operations overlap and require equal attention. It becomes challenging to handle these activities, especially if you have a growing business with a limited workforce.
Moreover, small business owners need to multitask between different activities to make a profit or break even. Sales, product and service creation, delivery, interfacing with customers, and raising funds are some critical operations they handle or oversee.
Unfortunately,it’s difficult to coordinate these business activities remotely.
Solution: Mobile and Remote Access to Documents
Digitization has taken over the business world, and paperwork is giving way to digital documentation. Remote access to your business documents will ensure you have some control and make decisions even when you're not physically present.
A system that allows you to remain connected to your business on the go ensures effective control of your organization's financial processes. You can make business decisions wherever you are. You'd be able to cross check and work on documents with your mobile devices, thereby efficiently coordinating business activities.
Expense Management Process
Problem: Managing Business Expenses Is a Time-Consuming Process
One essential business activity that requires utmost and detailed attention is expense management. Expense management is the process of recording and analysing organizational costs and making financial decisions based on your inferences from the data.
Yet, this process scan be time-consuming and can be a full-time job. And that’s aside having to concentrate on staff, admin, production, and petty expenses. Most expenditures don't even occur at a set time. You might have to make payments daily or every few days. Managing them while juggling several business activities requires a dedicated office and staff.
Problems arise when your startup can’t afford to dedicate an individual or workforce solely to this process?
Solution: Review Your Expense Management Process
To effectively combat this problem, here’s what you need to do:
Change the Process
You’ll need to overhaul how you manage your company’s payments. You can devise new procedures to aid the swift recording of expenditure and speed up the expense management process.
You can also hire new staff. Hiring support will reduce the workload on your existing team, allowing them to handle other aspects of your business.
If you're short on cash, one viable option is to outsource non-critical parts of your accounting process to a virtual accountant or employ one to work part-time.
Use an Automated System
An automated system helps you organize your finances, set up a Standard Operating Procedure, and reduce workload.
Are your receipts always missing? Digitizing your receipts and having an app to record them solves that. Do you encounter problems with your financial records? Having a computer accounting system that automatically saves and backs up records mitigates the problem.
The best part is that an automated expenses system speeds up the process, saves time, and reduces the probability of errors.
Expense Management Resources
Problem: Using Multiple Expense Management Systems
It's one thing to use automated systems for your business finances. It's another to combine various accounting software, spreadsheet, and paperwork efficiently. The latter is often a problem. Each system requires different techniques, performs different functions, and utilizes different resources. All of these can consume time and financial resources better put elsewhere.
Solution: Use a Consolidated System
The best way to combat the problem is to find an effective and consolidated accounting system that allows you to combine different business operations and documents. It will reduce the stress and resources that would have been spent on these multiple systems.
It's the goal of every business to operate at a profit. For this reason, you’ll need to handle and coordinate financial business operations efficiently. However, coordinating multiple business activities and tools is challenging. For efficient financial control, you need to invest in a consolidated tool that automates your business operations.
ZayPay is the tool of choice for many organizations across various stages of growth. It automates your business operations and offers you remote access. It also has modern accounting tools that streamline your expense management process. Finally, several financial recording processes are integrated into ZayPay, making it possible for you to manage numerous operations at a time. And you can do all of this and more while on the move from one single intuitive platform.