Relying on conventional accounting to keep track of your expenses may be viable for small businesses. There are few employees to manage, and validating their spending isn’t exactly a huge ordeal.
However, as businesses grow and head towards scalability, there are a number of departments, additional operations, and associated finances you need to stay on top of.
Now, it becomes critical for you to subscribe to a modern, on-the-go system that facilitates efficient expense reimbursements and ensures your accounts are up-to-date at all times.
For UK businesses that are expected to maintain records for up to 6 years for tax purposes, expense software is a major boon.
In this article, we’ll explore the importance of expense software in the UK. Here’s highlighting how it helps keep your business running smoothly and efficiently.
Expense software is device-agnostic
More often than not, employees tend to lose or misplace expense documents. This can prove to be extremely detrimental during the tax season when you wish to claim tax deductions.
A device-agnostic expense software helps employees and financial teams access and record expenses on the go, using any device of their choice.
For admins, it ensures they can instantly accept or reject any expenses that employees file. This significantly reduces unnecessary delays in reimbursements and prevents unwitting fraudulent claims as well.
It facilitates efficient cloud-based sharing and collaborating
Online bookkeeping software works wonders with other business apps too. For instance, you can use third-party software as your point of sales and the data will still flow directly into your online accounts.
This is one of the most useful benefits of automated expense software. It allows you to capture and upload pictures of receipts and other printed documents directly to the cloud. On top of this, expense software like Dext has automatic data extraction features that convert your records into digital data plus organize it based on any sorting method you chose.
These reports can be viewed from a single dashboard that also provides options to instantly manage (accept or reject) uploaded expenses.
There is manual data entry or verification required. It saves hours of productive time and frees up manpower. Plus, it helps eliminate fraudulent or reckless behaviour such as duplication of bills, and human errors. exaggerated expenses, and so on.
It allows integration with essential software
In the current digital age, it is crucial to have integration-friendly software that does not just save you time but also simplifies your expense tracking process. Before you buy expensive software in the UK, make sure you assess its ability to seamlessly integrate with existing software products.
This way you won’t have to manually enter your account details at every turn, nor will you have to wait too long for processes to go through.
It provides real-time insights and data analytics
Businesses that have in-depth insight into their finances can effectively scale and grow their companies to new heights. Advanced data-driven analytics introduces a numerical value to your business performance, which helps you assess your risk and financial capability for growth and scalability.
Business owners and accountants can closely monitor spending habits and curb or optimize expenditure to cater to the long-term vision of the company. It also improves decision-making and helps you align your business plans based on what the numbers have to say rather than just vague instincts. With data-driven analytics, you can rest assured your company is being steered in the right direction.
It reduces errors and improves accuracy
Accuracy in accounting records is critical to having a clear picture of your finances. Plus, it helps to file your taxes with ease and avail deductions and returns. On top of automating calculations and eliminating human errors, reliable expense software is designed to compute data in a manner that double-checks and prevents mistakes.
Since your expense software is linked with bank statements, payment apps, and other accounting products, there is no scope for duplication and reconciliation errors.
Summarized benefits of expense software
- An expense software reduces processing costs by roughly 50%.
- It reduces dependency and expenditure on manpower with the help of automation. This frees your company resources to direct their efforts towards core processes.
- It reduces turnaround times for reimbursements.
- An expense software in the UK helps you stay compliant with tax policies since you have real-time access to digital audit trails.
- It offers uninterrupted visibility into accurate and transparent records that are devoid of fraud.
- It helps you stay on top of spending trends with round-the-clock insights.
- An expense software can be integrated either with top accounting software or other third-party applications to move data easily and compliantly.
Benefit from faster turnaround times and ease at the time of tax filing with the best expense software in UK. Sign up and start managing your expenses with Dext today!