Expense Management: 9 Ways that Can Help Small Businesses Grow

As a small business owner, you are always looking for ways to save money and grow your business. One area that you may not have considered is expense management. Expense management can help you save money on employee labor costs, travel expenses, and more.

In this blog post, we will discuss in detail what expense management is and how it can help small businesses grow. So whether you’re looking for ways to save money or grow your business, read on!

What is Expense Management?

Expense management is the process of tracking, managing, and controlling business expenses. This includes both the direct costs associated with running a business, such as materials and labor, and the indirect costs associated with doing business, such as travel expenses. 

In expense management, businesses track their expenses in order to identify areas where they can save money. This process can be manual or automated, but either way, it requires careful tracking and analysis of business expenses.

Examples of Expense Management Software Programs

There are many expense management software programs available that can help small businesses track and manage their expenses. These programs can automate the expense management process, making it easier and faster for businesses to track and control their expenses.

Examples of expense management software programs:

  • SAP Concur – offers expense report automation, travel and expense policy management, and expense report tracking. 
  • Xero – has incredible features such as invoicing, bank reconciliation, expense claims, and inventory management.
  • Zoho Expense – includes expense report automation, expense report tracking, and credit card expense management.
  • Expense.com – has expense report automation, credit card integration, and expense report tracking.
  • Certify – provides features such as expense report automation, credit card integration, and receipt scanning.
  • ExpenseWatch – has impressive features like real-time spend visibility, approval workflows, and spending controls.
  • Airbase – focuses on automating expense report management with features such as real-time expense reporting, receipt scanning, and credit card integration.
  • Ramp – expense management software built for startups and small businesses with features such as expense report automation, credit card integration, and expense budgeting.
  • Fyle – offers real-time expense reporting, receipt scanning, trip tracking, and automated expense report management
  • Expensify – provides features such as real-time expense reporting, receipt scanning, and credit card integration.

These are just some of the expense management software programs available to small businesses. There are many other expense management solutions out there, so be sure to do your research to find the best one for your business.

Read More: 5 Ways Businesses Can Reduce Their Environmental Impact

How Can Expense Management Help Small Businesses Grow?

There are many ways in which expense management can help small businesses grow. Let’s take a look at some of them below:

1. Saving on employee labor costs

As a business owner, you‘re always looking for ways to reduce costs associated with running your business. One way expense management can help you save money is by reducing the amount of money that is spent on employee labor. For example, if you have a business credit card, you can use expense management to track employee spending and ensure that only authorized expenses are charged to the card. This can help you save money on employee labor costs by preventing unauthorized spending. 

2. Reducing travel expenses

Travel is a necessary part of doing business, but it can be expensive. Expense management can help you reduce your travel expenses by tracking your spending and making sure that you are only spending what is necessary. For example, if you use a business credit card to book travel, you can use expense management to track your spending and make sure that you are only spending what is necessary. This can help you save money on travel expenses by preventing unnecessary spending.

3. Saving on office supplies

Office supplies can be a significant expense for businesses, especially small businesses. But with expense management, you can save on office supplies by tracking your spending and making sure that you’re only spending what is necessary. For example, if you use a business credit card for startups to purchase office supplies, you can use expense management to track your spending. This can help you save money by identifying areas where you can cut back on expenses.

4. Reducing overhead costs

Overhead costs are the costs associated with running a business, such as rent, utilities, and insurance. With expense management, you can reduce these costs by cutting back on unnecessary expenses and finding ways to save money. For instance, you may be able to negotiate a lower rent price with your landlord or find cheaper office space.

5. Improving business creditworthiness

Good expense management can help improve your business credit score. This will make it easier to get loans and lines of credit in the future. It will also help you get better terms and rates on these loans.

6. Making better use of business resources

By tracking and managing expenses, you can get a better understanding of where your business is spending its money. This information can help you make better use of your resources and save money in the long run.

7. Generating more revenue

Expense management can help you generate more revenue by reducing your business expenses. This will allow you to reinvest the money you save into other areas of your business, such as marketing or product development. Doing this can help you attract new customers and grow your business.

8. Automating expense management process

Automating your expense management process can help you save time and money. With expense management software, you can track your expenses, generate reports, and reimburse employees automatically. This can help you stay organized and efficient, which will save you time and money in the long run. Moreover, freeing up your time also means that you can focus on other areas of your business like growing your customer base or developing new products.

9. Giving a better understanding of spending habits

Understanding your spending habits is an important part of expense management. By tracking your expenses, you can get a better idea of where your money is going and how you can save money in the future. This information can help you make changes to your spending habits and improve your financial health. 

As you can see, expense management can be a powerful tool for small businesses. It is not only about reducing business costs but also about improving your business as a whole. If you are not currently using expense management, now is the time to start. It definitely pays to be expense-savvy!