Let’s face it: despite your best efforts, it’s still almost impossible to get a firm grip on your company spending. You’re not alone—big businesses and solo entrepreneurs alike struggle to develop a sense of financial security, often creating severe and faulty budgets or slashing costs in the attempt. Maybe your team has done the same. If so, you already know that these tactics are short-term solutions at best.
If you’re looking for more effective ways to manage your company spending, we’ve got just what you need. In this article, we’ll disclose five of our best tips at reigning in a trigger-happy spending habit.
1. Stop passing around corporate credit cards
For most businesses, it’s not uncommon for the boss to hand out his or her corporate credit card so they don’t have to make company purchases themselves. We’re guessing it’s happened a few times at your organization too. We should warn you, though, that this is a terrible way to handle company money. In fact, passing around your corporate card makes it downright impossible to accurately monitor and restrict spending
Budgets are about accountability; they only work if you can attribute each cost to the person or department that charged it. When you’re passing around a communal card, there’s no way to tie purchases to any one person. So if someone on your team makes an accidental or fraudulent purchase with a communal card, they’re likely to get away with it.
We know that handing out your card may seem easier and faster, but there’s a better way. Imagine being able to offer a physical card to each employee that needs it—one that you can set spending limits for. That’s what Divvy can offer you.
2. Involve your team in financial goals
Financial goals are most effective when everyone involved knows them, and work to help you achieve them. If you’re cutting company costs, setting budgets, and improving your expense management, involve the people who will actually be executing this plan. You won’t be making every purchase yourself, and if they don’t know what the budget objectives are, they can’t make purchases with them in mind.
Bring your team up to speed on the company’s financial status and share your long-term monetary goals with them. You’ll create a team that is unified and cooperating toward the same goals. This will encourage them to find more affordable tools and to save money where they can.
3. Get employees integrated with Divvy
Divvy is by far the most intuitive and reliable expense management solution available and seeing that it’s entirely free, it’s definitely worth looking into. Divvy is a powerful tool used to monitor, control, and analyze your spending, and the spending of your employees in real time, and it has a wealth of features other expense management software doesn’t.
With Divvy, you can hand out physical cards that are tied to specific budgets for individual employees and/or departments. You can modify spending limits on those cards, effectively controlling how much is spent. You can even track employee spending in real time and save loads of company time with automated expense reports. The list of features and benefits to using Divvy is seemingly endless, providing you with an unparalleled way to manage your company spending.
4. Sign annual contracts and renegotiate every year
All your vendors and suppliers are in a competitive market and can easily be replaced with a better and more affordable company. So don’t get caught in a long-term contract when a better deal could come along in a year or two.
One way you can improve your spend management is by avoiding contracts that are longer than a year and renegotiating those each time you renew. Not only does this give you the power to negotiate better deals, but it also gives you complete control over company spending.
5. Take advantage of automated expense reports
Odds are, the time and money you’re losing by manually submitting and processing expense reports are considerable. For smaller companies, it’s likely in the thousands. For larger companies, it’s certainly way more than that. It’s likely the most costly activity your finance department participates in.
Not only does manual reporting take time and money, it’s also remarkably flawed and leaves a wide margin for error, making it nearly impossible to effectively analyze and control company spending. It’s also vulnerable to fraud, robs you of real-time insight into your spending and, let’s face it, nearly everyone hates the process.
Take full advantage of automated expense reports with the only company that can offer such a thing: Divvy. When you start using Divvy’s free platform to overclock your expense management, you receive truly automated expense reports in real time. No more waiting for delayed expense reports that require time-consuming corrections. With Divvy’s business expense tracker, you have the ability to monitor company spending in real time.
Divvy is 5-in-1
When it comes to controlling your company spending like a total boss, only Divvy provides you with the tools you need to succeed. Our free and secure platform will change the way you do business with an abundance of marvelous tools, features, and benefits designed to help you regain control of company spending and reduce the time it takes to manage it. Schedule a demo today.