Expense Reporting Software - Using Expense Reporting Software to Manage and Track spending by category

One of the benefits of an automated expense report software package is the ability to set up and track spending by expense category.

(prHWY.com) January 11, 2013 - PA, PA -- PA, Jan 11, 2013 - One of the benefits of an automated expense report software package is the ability to set up and track spending by expense category. This will help you to see how and where your company is spending money by category, and ultimately enable you to save money.
The first step is setting up meaningful categories. Be sure to check IRS guidelines so you capture at a minimum the information that the IRS will require for your company to stay in compliance with expense reporting processes.
As you define your categories, be as specific as you can, which will help you when you start to report on spending across categories. For example, make separate categories for modes of transportation such as taxi, train, airfare and car rental. Here is a good list you may want to start with when defining expense categories:
Airfare
Business Meals
Car Rental
Entertainment
Internet
Lodging
Miscellaneious
Mileage
Mobile
Office Supplies
Parking
Phone
Taxi
Train
Tolls
Next, set up the attributes you want to collect on your categories, and be sure to check IRS requirements here as well. For example, for Business Meals, you will want to collect the number of people eating the meal as a minimum. You may also want to require the itemized receipt, rather than the credit card receipt. Some companies may have requirements about not expensing alcohol, for example, and would want the restaurant receipt to make sure inadmissible expense items are not included.
Expense Reporting Software -- As you start to accumulate data in your expense reporting software, you can start to see trends in spending. You can also see how many different vendors are being used in a given category, providing you with valuable insights as to whether it makes sense to negotiate rates and consolidate spending with one or two vendors.
This ability to track spending by category is only one of the many advantages your organization can expect when automating with comprehensive expense reporting software.
About the Author:

Purchase Management - ExpenseWatch.com delivers spend management products & services for businesses that automate manual, time consuming paper-based processes for company purchases, payable invoices and expense reports, while enabling visibility and control of all company spending.
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