How do You Manage and Track Reimbursable Expenses?

How Do You Manage Reimbursable Expenses

It can be a challenge to keep up with the small expenses that move through your business each day. Many business owners find that reimbursements and expense reports are time-consuming and tedious, which means that these tasks often fall to the bottom of the priority list. If you are neglecting the financial tracking of your expenses and write-offs, then it is possible that you are missing out on essential tax benefits each year.

Why do Reimbursable Expenses need to be Tracked?

Why is it necessary to keep up with all of the busy work? The tax benefits are the most obvious reason that you need to make sure that you are keeping up with reimbursable expenses. Taxes are calculated based on net income, so you can manage your tax burden by leveraging the expenses as much as possible.

For example, if you are spending money each month on business meetings with potential clients, then these small expenses can be used as write-offs. Whether you spent money on a lunch for the client or invested in Christmas gifts for your business contacts, these expenses need to be tracked so that you can provide a detailed outline of costs to your bookkeeper or accountant.

A Bookkeeper Can Help

When you have an experienced bookkeeper helping with the financial tracking for your company, then you don’t have to stress as much about the details of the cash flow. The bookkeeper can manage and categorize transactions that are moving through your business accounts. Then, you can provide the supporting documentation, such as receipts or other paperwork that is needed to verify the transaction.

Your bookkeeper will keep this information organized and filed. A small business bookkeeper can provide you with detailed financial reports throughout the year, as well as other financial information that might be needed. You don’t have to worry about the small, tedious tasks because a bookkeeper will take care of those details for you.

Streamline Your Bookkeeping System

If you want to reduce your stress levels and maximize the financial results for your company, then you need to hire a professional team to help. By organizing your tracking system and maintaining consistency throughout the year, you can easily provide details about your reimbursable expenses when it is time to file your taxes. Additionally, you will have the peace of mind that you have a reliable filing system to identify receipts and documentation if it is needed.

Are you ready to learn more about how a good bookkeeping system can be beneficial for your company? Contact us at Easier Bookkeeping. We are here to help: (888) 620-0770

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