Your company’s revenue is the amount of money it actually receives during a specific period. In accounting, this is the “top line” or “gross income” figure. Then costs are subtracted to determine your company’s actual net income.
Here’s a greatly simplified example:
- Revenue (gross income) $1,000,000
- Minus expenses -$400,000
- Actual net income = $600,000
So clearly, better managing that middle line (the expenses) is a powerful strategy for improving net income.
But many companies fail to realize that “expense processing” is an expense that can be better managed. After all, a controller/bookkeeper/office manager may already be in place to keep on top of expense processing. And now that employee is ready to be empowered to the next level.
A Web-based expense management system can help your controller/bookkeeper/office manager build revenue by streamlining your company’s expense processing. Take fraud, for example, which is definitely a silent thief. An employee may think: “Pad $50 here, an extra $100 there. Who will know?”
Expense reporting oversight greatly improves with an expense management system. In advance, your accounting team defines the rules for allowable expense types and expense limits. In addition, you can require that receipts be uploaded for all expenses and those receipts stay permanently attached to the expense report.
Or maybe you understand the hassle of handling paper receipts when you’re traveling all week between customer accounts. In which case, a robust expense management system integrates seamlessly with credit card transaction data so that expenses can be automatically brought into the expense report. No more rekeying the information, no more looking for lost receipts.
By closing off the loopholes for expense fraud, this is one tactic that can help decrease expense processing costs and contribute to more revenue.
Improve your expense management, here.