Admit it. If your business is booming, it can become quite a challenge to keep employees, customers, and the government you are paying taxes to satisfied. Being well prepared when tax season arrives is crucial and can make for a less stressful filing process.
Namely, tax preparation practices can be tedious and unclear, but if you stay watchful throughout the year, issues can be prevented.
For example, automating your business spend can ensure that you are getting the most out of your business efforts. Also, it can save you time, which you can then invest back into your company.
Here’s how to prevent common tax time business spend errors:
Take photos of your receipts using a mobile app
Keeping records of every business transaction can be extremely time-consuming and can occupy a lot of office space.
You can transform your paper receipts into a digital catalog using an expense app. These apps feature OCR technology that categorizes receipts by gathering time, date, and amount of information. This is great for small businesses, should you need to prove to the IRS, HMRC, or ATO that you spent money on business-related reasons.
Track your mileage in real-time
Manually tracking business mileage obstructs the purpose of the business trip by consuming time and resources. Manual tracking also allows room for human error.
An expense management system incorporates automatic verification of miles traveled and features policy flags for administrators, eliminating the chance for errors.
Humans make errors. These errors can be extremely costly and detrimental to your business. For example, invalid business journeys, amplified costs, and eyebrow-raising out-of-policy claims can contribute to expense overspend or tax audits from inaccurate information.
Automating your business expenses can help enforce policies for spending, travel, and other expenses while providing a barrier for duplications and errors.
Enforce your T&E policies
Since employees are most concerned about work-related affairs, it is easy for all of those extra margaritas at business meetings and events to add up quickly! Keeping a close watch on what is being spent on business-related ventures is crucial to ensure the gesture isn’t being abused.
Going fully automated assists in successful expense policy compliance by automatically flagging down travel and meal transactions that have been made out of limits to the designated approvers.
Increase your expense spend visibility
Do you ever find yourself asking: Where did all of the money our company made end up? It’s easy to lose track off business spend, especially for businesses still managing it on manual spreadsheets.
Automated software can help improve visibility of spending by offering real-time reports and by tracking and storing data on every aspect of employee expenses. This will allow you to catch any discrepancies and view transactions by date, time, type, and reason.
Removing the burden of manually tracking each business expense by going automated can help by staying well prepared for successful tax seasons to come.