Expense management

Why Expense Management Matters

Cost control is the main advantage. Tracking expenses in real time shows where money is wasted, like on unnecessary subscriptions. This way, funds can be used for more important things. Compliance is also crucial, as it ensures adherence to tax rules, like GST in India, while reducing fraud risks. Good expense management also boosts employee productivity. Quick reimbursements through UPI/IMPS lessen administrative work, raising morale and efficiency.

Smarter Ways to Manage Expenses

• Set Budgets: Use strategies like the 50/30/20 rule (needs/wants/savings) with realistic thresholds (e.g., ₹5,000/month for travel).

• Automate Tracking: Tools like Zoho Expense and RazorpayX sort spending. They also highlight policy violations on their own.

• Conduct Monthly Audits: Check digital receipts using apps like KhataBook. This helps to find errors or fraud, especially in entertainment.

• Enforce Per Diems: Set daily limits (e.g., ₹2,000 for meals). Encourage virtual meetings to reduce travel costs.

The Bottom Line

Effective expense management can save businesses 15–20% each year. This frees up funds for growth, like marketing and R&D. A good system also boosts financial efficiency, ensures compliance, and simplifies the reimbursement process for employees.