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BQE Core’s Usage of Overhead Multiplier

Company’s may calculate and change their overhead multiplier quarterly or yearly and they may also handle billing and time entry differently. Generally, the calculation of Bill Rate is done using the following formula.

Bill Rate = (Profit + Overhead Multiplier) x Direct Personnel Expense

While Overhead Multiplier is calculated using:

Overhead Multiplier = (Expenses in Total + Allowance for Doubtful Accounts) / (Direct Labor + Direct Expenses)

Certain government departments limit profit by not allowing the creation of any allowance for doubtful accounts. In light of your contracts and/or practice, Direct Labor costs are either incurred through salaries or direct personnel expense.

These calculations can also be done through the General Ledger, special accounts for Direct and Indirect Labor, and other data from bookkeeping. This uses a simple formula:

Overhead Multiplier = Sum of Indirect Expenses/Sum of Direct Labor

Things BQE Core and QuickBooks Users Should Know

If you are using QuickBooks as your business’s accounting software, while integrating with BQE Core, you need to ensure that you send the cost (in terms of time) to the correct accounts. Your activity codes should be mapped in order that direct and indirect time is easily distinguishable. Also, ensure that you separate Direct Expenses from Overheads. Again, Proper Mapping is highly recommended.

Activity Codes for overhead activities can be very different from the ones for direct project expenses. Furthermore, different Activity Codes are also needed for Indirect and Direct time.

In some cases, your firm may have employees who don’t enter their work times in BQE Core. These people have categories of activity, which are known as outside project. These categories are later summed up and included in the Indirect Labor account in the General Ledger. If you want to see information for each individual category, you can check it in the project reports you get.

The activity codes you set are key as the mapping that connects QuickBooks and BQE Core is highly dependent upon them. After the codes have been set up properly, the staff simply needs to enter their details in the activity that relates the most to their tasks. There is no need for them to have in-depth knowledge regarding mapping or accounting. Firms with smaller projects usually find the tasks related to activity codes pretty tedious.

Sometimes, companies need to distinguish between billable/non-billable and chargeable/non-chargeable expense and time. For example, an expense might be non-billable, however it can be still charged as an expense to a project since it would be in the cost of doing that project. The client might not be billed for it, but the identification of expense is necessary.

In BQE Core, you can select an option to assign a project to a particular ‘Overhead’ Contract Type. This option is utilized for some internal work, for example: office renovation or marketing.  The expense is treated like a regular project. Similarly, several small projects can use the same activity codes. You can exclude and delete the codes that aren’t relevant.

This is all done simply to allow you to breakdown the project into smaller, more manageable tasks, making it easier to put together and track your budget. It can be made even easier if everyone in your firm who collects a salary can enter time in BQE Core. This will give you a more accurate look at the hours and the corresponding costs that are required in running your project. It might be unusual for non-project employees to enter their hours in BQE Core, as it is project-centric software. You can also ask them to mark their off days on the next workday in order to process their payroll and track Paid Time Off. After all of that is done, to calculate Overhead Multiplier, simply do the following:

  1. Run Profit/Loss Report for the previous year (12 months) – Take the values of Total Expenses and Total Payroll Expenses
  2. Apply The Formula

Overhead Multiplier = Total Expenses / Payroll Expenses

This will give you a value which will denote the total expenses incurred per every dollar you pay in wages. BQE Core then calculates the default Cost Rate by multiplying Pay Rate for each employee by the Overhead Multiplier. The Cost Rate is used to derive the Cost Amount by being applied to the work hours. When you update the Overhead Multiplier (either quarterly or yearly), new time entries are subject to a recalculated cost rate.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

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Reducing overhead expenses can be tricky as modern business has many new aspects to handle. However, for it to make a difference, saving costs matter greatly. To be able to contribute beneficially to all commercial endeavors, arresting any unwanted or unnecessary costs is the key to good management skills. In the global markets today, being cost-effective is definitely a magnificent step.

 8 Strategies for Reducing Overhead Expenses

  1. IT Resources And Its Costs

IT resources can eat up energy, so being energy efficient and reliable are two things that are mandatory for modern IT shared resources like printing and email. Switching to equipment that helps things run with low costs is highly advised. Large screens consume more electricity and so does an older version of motherboards and drives. The latest technology allows more cost and energy savings. For example, converting your business needs to cloud computing is a little costly but, once implemented, it saves many resources and is always feasible in the long run.

  1. Reducing Overhead Expenses with the Internet

Using internet telephony is a marvelous way to save on business communication costs in the shape of reduced phone bills and other expenditures incurred for different services that are offered on a mandatory basis by the phone company. And, living in the 21st century, it’s wise to utilize all that is available.

  1. Monitor Payment Services

Some banks deduct charges from the merchant account. If that increases and the turnover isn’t worthy of it, stop using it. If sales are poor and the only sales that do occur are online payments, that means partial profits. For reducing overhead expenses, insist on cash wherever applicable.

  1. Daily Vital Activities

The digital era has turned offices paperless. Vital daily correspondences, for example, between vendors and field agents like engineers, for specific material requests can be conducted and stored as PDF on digital storage media much easier as compared to printing paper for a file. Having a centralized database of correspondences would be a good idea if the situation is as described. However, other expenditures such as electricity and heating expense must be supervised. Employees who wish to work from home are welcomed to do so, reducing overhead expenses, cutting utility charges, and other related expenditures. Even on premises, make sure an advisory system of politely requesting all equipment to be placed in standby mode to become more cost-efficient. Avoiding high frequency lighting and providing energy efficient light such as low energy bulbs offer a significant sigh of relief when billed.

  1. Outsourcing

Some businesses require minimized accounting or IT services which can easily be received by consultants or service providers. By outsourcing such departments, businesses can benefit with employing interns or freelancers. Temporary staff is effective for specific projects. Businesses like vending or merchandising eradicate the need for mass training of staff and help in reducing overhead expenses. 

  1. Outdoor Calls

Traveling for campaigns requires cost-effective methods such as using teleconferences instead of taking a team of marketing whizzes on a three-day product introduction workshop. Using business tools for communication like Skype should be the first mode of all such conferences. With technology and the evolution of the web, it’s a smart business tool that is always an influential ally of a business. Traveling lightly or traveling only on essential trips that are necessary help to economize by reducing overhead expenses. 

  1. Business Gatherings

It is always a great idea to know business contacts but it’s even smarter to form joint venture partnerships. Some businesspersons welcome such projects and, with the experience it provides, the portfolio of a business shines bright! Sharing projects leads to consortium which helps provide an influx of revenue while sharing tasks between entities. This approach is rampant in construction, oil and gas, power generation, etc. This practice leads to win-win situations which are of mutual interests. Carrying assigned tasks per project description helps in reducing overhead expenses on both sides, while delivering quality and ensuring a greater profit.

  1. Smart Decisions – Buy Versus Rent

Some business owners have to deal with this often. Renting versus buying; which is better. It’s always a great idea to procure small equipment like pumps, which are easily handled by trained staff. It’s a little more difficult with high power industrial pumps which can be rented in dire circumstances. But, it’s always preferred that the continuously needed hardware should be purchased.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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Calculating the overhead rate and percentage of a business essentially includes dividing the organization’s indirect expenses by direct expenses. As soon as a company figures out their overhead costs, it makes it easier for them to decide the prices for their products and services. This is necessary because it leads to a reduction in the prices of their products and services and allows them to stay competitive. The whole purpose of determining the overhead rate and percentage of expenses is eventually to decide the appropriate cost of products.

In order to calculate the overhead rate and percentage for small surveying businesses, there are few steps that companies can follow.

Step 1 – Calculate the Sum of the Direct and Indirect Expenses

This is the primary step to find out the overhead rate in any company no matter their size. In order to calculate the direct expenses, align the cost of direct labor and direct material that is required to manufacture the products or services that the company offers. For example, if a company sells mobile phones, the cost of materials and labor directly paid to the workforce and everything else that is involved in the manufacturing will be included in the direct expenses. Direct expenses are directly proportional to the number of products manufactured each year. However, for indirect expenses, align all of the costs that are indirectly involved with the manufacturing of the products such as the sales and customer services department, taxes, marketing, administrative expenses, insurance, etc.

Step 2 – Calculate the Overhead Rate

Once you have calculated the direct and indirect expenses of your company, the next step is to divide the sum of all direct expenses with that of all indirect expenses. The answer is the overhead rate.

Step 3 – Calculate the Overhead Percentage

Once you have calculated the overhead rate of a small surveying business, next, you shall multiply the overhead rate with 100 to determine the overhead percentage.

How Often are Overhead Rate and Overhead Expenses Ideally Calculated for Small Surveying Businesses?

Usually, the overhead rate and percentage are calculated yearly. However, in a small surveying business, the overhead rate and percentage are calculated each month in order to evaluate the expenses and cost for each month as the company is in its premature stage and the frequent calculation and evaluation lead the company to revise and analyze the cost and expenses.

Why is it Important to Determine the Overhead Rate and Expenses?

Determining the overhead rate and percentage is a very important thing for all kinds of businesses. This allows the management of any business to initiate sensible operations. The rate allows the company to keep track of the profit margin by contrasting the expenses with the cost. The rate also lets the company predict its profitability for the upcoming months and year. The company shall ideally have an overhead expense and cost that will significantly include a slight margin of the profit. Once a company calculates the overhead rate and percentage, it comprehends the effect of overhead on various costs involved in a business and also helps the company to decide what role the rate plays in the prices of their product. It is advised for companies to review their overhead costs bi-monthly, monthly and on a quarterly basis by doing a regular bookkeeping.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

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There is no denying the fact that cutting business expenses and controlling costs has become extremely challenging in today’s business environment. Modern trends indicate that companies need to reduce their expenses to effectively achieve their business goals and objectives. However, establishing control over your business and finances requires a large amount of motivation, knowledge, skills, and expertise. Why? Because only a clear-cut strategy and well laid-out plan can make cutting down your monthly expenses hassle-free.

Cutting business expenses? Not a problem!

Moreover, reduction in business expenses and an increase in revenue can have a big impact on a company’s profitability and are two ways by which companies can maximize their profitability index. According to industry experts, increasing sales and revenue is hard because it requires a lot of planning and strategy. It takes time and effort to come up with a brilliant execution plan. On the contrary, cutting business expenses is something that can be done easily, without much stress. All that it takes is a little bit of your time. Moreover, it is important to review your bookkeeping and accounting records to establish a clear picture of your company’s standing prior to making any solid decisions regarding controlling your costs.

Reduce Supply Expenses

If you expect to reduce supply expenses, you need to look outside of your pool of traditional vendors. Look for the vendors, manufacturers, or suppliers who can offer you the best price as large discounts help you cut business expenses and costs. Bulk purchasing is ideal in each and every sense. Always seek multiple bids to get ideal rates and never make a long-term contract for supplies with a single party or vendor as saving can have a big impact on your bottom line.

Lower Financial Expenses

Hiring an in-house accounting or auditing professional can be a costly decision. That’s why most businesses rely on external accounting agencies or individuals who offer competitive rates for their services. Cutting back on your business expenses means saving money on insurance and additional bills. To meet financial emergencies and consider a business expansion, you need to regularly contribute to your savings account. Lastly, don’t take on unnecessary debt to make ends meet because you may eventually find it hard to pay back the money you borrowed from the bank with interest. Prior to making such decisions, you must do a thorough cost-benefit analysis and future forecasting.

Take Advantage of Social Media Marketing

Traditional marketing can cost you a fortune. This indicates that you need to look at some cheaper alternatives like social media marketing such as Facebook, Twitter, and other similar dynamic platforms. You can build your customer base there, as studies have revealed that social media marketing is more effective than traditional marketing on the mainstream media, ultimately reducing your business expenses.

Try To Achieve Economies of Scale

By maximizing your productivity in manufacturing, you can expect to take your expenses to a minimum level. Improved R&D and market knowledge will help you achieve economies of scale, which is ideal for maximizing your profitability.

Review Your Finances and Business Books Quarterly

To get a clear picture of your finances and business condition, you need to review, maintain. and manage your business books, if not on monthly basis, then quarterly. Moreover, to cut business expenses, you need to audit your monthly subscription billing. Switch to the software applications or talent that are worth your investment and money.

Look For Affordable And Suitable Office Alternatives

You can always consider relocating your office to a more affordable area to cut business costs. Often times, in the age of digitalization, companies don’t need to have their office located in prime, expensive locations. You can move your office to a convenient location that offers affordable rates to reduce commercial rents.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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In order for small businesses to manage and run their business expenses smoothly, it is essential to keep tabs on your cash inflows and outflows. No question about it, the significance of proper expense administration for any magnitude of business is huge. The execution of the best businesses practices is a giant factor towards the revenue, growth, and, eventually, success and achievement of the business.

Bookkeeping is an excellent way for small and medium-sized businesses to manage their business expenses. The concept of bookkeeping cannot be stressed enough, be it in any kind of occupation or any kind of management. By efficiently handling and keeping tabs on business expenses, owners can gain a multitude of advantages:

Block Unseen Sinkholes

At times, your money is lost in places it should not be. By managing your business expenses well, you will easily be able to find those unseen sinkholes.

Maximize Income

By getting rid of wasteful expenditures and making the best use of items that are considered tax deductible, business owners have a chance to achieve a noteworthy aggregate of revenue.

Generate Prospects For Growth 

For businesses owners, it can be a huge deal if they are aware of where their money is being spent. Not just that, it also makes a big difference in finding out how effectively that money is being spent. These two aspects are a big factor in the preparation and accomplishment of future growth of the business.

In order to improve your business expense tracking technique, business owners should implement the below practices in their business:

Be Certain That Business Expense Policy Is Firm, Clear, And Fair

The business expense policy of your company needs to be well-founded, fair, and unambiguous. If there are any exceptions, they should be set aside for exceptional situations. The organization should make sure their managers, employees, and clients are familiar and well-aware of the policies set in place.

When formulating a business expense policy, the one thing that should remain a priority is ease of communication. After all, you don’t want your employees to go through the company textbook every time they have a question just to understand the business expense policy. The key here is simplicity.

Keep Your Business Expense Reporting Procedures Clear And Simple

Keeping the importance of simplicity in mind, we will further elaborate with the next point. When we talk of simplicity, it has its benefits and advantages. The first point is, the simpler you keep your business process and procedures, the more your employees will be able to comply. The more simplified the procedure is, the more your employees will stick to it.

Secondly, if the procedures are complex in nature, it will increase the chances of inaccuracy in managing the business expenses. The more administrative boxes and excel spreadsheets you have that need to be entered, the more chances there will be a blunder made somewhere. These are blunders that could possibly end in forfeiture of an expense entitlement.

Finally, and most significant of all, simplicity means speed and swiftness. If the system is simpler, your clients and employees will spend less time on the business operations.

Gather Relevant And Required Information For All Business Expenses

When it is time to file tax returns, the one factor that can immediately kill the likelihood of you getting your hands on any money is non-compliant invoices.

Whenever a reclaimable expenditure is incurred, the associated invoices and receipts will guarantee you of getting your money back. This is why it is extremely important to save those invoices and receipts so that they can be accepted for a tax refund by the appropriate taxation office.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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When defining the price of a product, you need to set it at a point that covers total production costs. Production costs, however, include more than just the cost of raw materials or equipment. Payroll, marketing, and every expense of the company needs to be factored in. Direct costs and indirect costs are a combination of all expenses and resources that are expended by a business in order to run its operations.

The basic difference between direct and indirect costs is based on their relation to the product or service being produced. The costs that have an immediate relation to the product and service’s production are referred to as direct costs, such as direct labor, direct material, etc. While the indirect association is closely related to costs that cannot be directly assigned to the production of a product such as a payroll, cost of employees, depreciation, general expenses, etc. Indirect costs are also known as overhead expenses. The concept may sound simple, but understanding the key differences between direct costs and indirect costs will allow you to correctly allocate them in your accounting ledger.

Direct Costs

Direct costs are the costs that can be easily attributed to a specified cost object which can be a product, service, project or a department.  For example, raw material, manufacturing equipment, software, and direct labor costs. Raw material and direct labor costs are two of the major direct production costs. For instance, making furniture would include the cost of acquiring the wood and labor charges of the carpenter.

The costs of finished raw material are usually also counted as directly incurred costs and they are tracked by FIFO (first in first out) and LIFO (last in first out), which are two of the most popular accounting methods to record availability of the product in stock.

To further understand how direct costs and indirect costs work, you must first gain an idea about fixed and variable costs. As the name suggests, fixed costs remain the same over time while variable costs may alter periodically. Direct production costs are usually variable costs, however, payroll cost is one of the few exceptions that is fixed. Similarly, buying a hardware for a smartphone would be counted as a direct, variable cost because it depends on the number of units to be produced.

Indirect Costs

Indirect costs are associated with all of the expenses that go beyond the production of a product. This is the cost of running the business after all the direct costs are attributed. Everything that is required by a company to run its operations such as indirect labor, rent, utility bills, and supplies are counted as indirect costs. These costs are not specified in the production or single product or service.

Labor costs can also be counted as direct or indirect costs, depending upon the situation. If an HR resource is specifically assigned to the production of a product, the costs are direct. However, the salaries of cleaners and guards are indirect labor costs.

Marketing and advertising are also indirect costs because they do not have any direct relation to the production of a product. Employee benefits and costs of acquiring accounting services are also indirectly related to the production. Indirect cost can also be fixed or variable, depending on how they occur. Rent is a fixed indirect cost, while utility bills are indirect variable costs.

Ambiguity

There are certain costs that lie in the grey area to be counted as a direct or indirect cost. Hiring a consultant, printing, postage, and traveling costs are sometimes the cause for concern because it’s hard to place them in any one category. What companies do is, based on their usage and relevance, place these costs in their respective categories.

An overhead rate by companies is used to preserve liability and to assist in determining the allocation of administration costs between various departments. It is basically a ratio of total indirect costs and related direct costs. Departments that bear the highest ratio are allocated a greater share of the indirect cost.

Significance

The way you allocate costs as direct or indirect has an effect on your tax payments as well. All overhead charges such as your electricity and gas bill to run the equipment and machinery are tax deductible. Therefore, according to IRS rules and regulations, you are supposed to classify all direct and indirect expenses accordingly.

Classifying government grants and funds as direct or indirect costs is highly important as they come with strict policies, which must be adhered to. Failing to do so can have significant consequences for your business at the time of auditing.

Indirect and direct costs are the key to calculating your cost of goods sold and you cannot really set a price of the product unless you exactly figure out the manufacturing cost. Understanding each of them is vital for every business as it helps them to make key strategic decisions.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

Business Expenses - Complete Controller

Business expenses are part of the daily routine when it comes to running a company. Whether it’s utility bills or buying inventory, you need to spend the money to make it. Tracking these expenses helps you understand your spending behavior, cut costs, and plan tax times.

If you have lost a week of precious time sorting through credit card charges and paper receipts to figure out how many of your purchases were business expenses, it’s time to step up your organizational capabilities and devise a system for tracking the costs in real-time. Here are a few ideas that will help you develop a better expense management system. Check out America's Best Bookkeepers

Create a Separate Business Bank Account

Often, many sole proprietorship businesses have not prioritized their personal and business accounts, which can result in a lot of confusion. Separating your business and personal accounts should be a top priority for any business. This priority is so that business-related purchases and payments will move through a separate account from the beginning, making it easier to track business expenses later. The use of business credit or checking account is preferable in this regard. The business account will also build up a separate business credit score that is considered an essential factor by banks and other businesses to measure risk. Maintaining a good credit score will ensure that you are eligible for business loans and other services. Check out America's Best Bookkeepers

Use Online Tools to Track Expenses as they Occur

There are many online tools on the market that are quite handy and easy to use for everyone. You don’t have to be an expert to make use of these bookkeeping tools that cater to most of your accounting needs, such as tracking expenses. As soon as you get a receipt, the information can be put into the software, which can then be accessed at any given time. The expenses will automatically add up and show various other trends compared to your sales or income, which significantly helps in better decision making. Because you have access to updated information about business expenses at all times, you are better positioned to strategize for the business according to your current situation.

You can set up alerts to remind you to pay future expenses before they are due. You’ll be able to print out the entire calendar for reference as tax time approaches. Some of these online tools, such as Google Calendar, can synchronize with your phone, enabling tracking business expenses on the go.

Hire a Bookkeeping Expert Check out America's Best Bookkeepers

One way to track expenses and handle all accounting tasks efficaciously is to hire an expert. As a business owner, it can be hard to check on all of the accounting tasks, among other essential business requirements. Having a professional manage your bookkeeping needs will ensure that everything is on track when handling the finances. It is suggested to hold a weekly meeting with the person in charge of your finances so that you will always know where your company stands. The right accountant will offer an honest valuation of your business finances and suggest a solid plan to reduce expenses. A bookkeeper that can help you stay out of trouble with the IRS is most certainly worth the investment.

Consider your Employee Costs

When tracking your other business expenses, don’t forget to include one of your significant expenses: labor. Ensure that you are correctly following the cost of wages, benefits, overtime, and other expenses related to your employees. By accurately determining the costs of maintaining a workforce, you will be able to decide whether they need better incentives or overspending the budget. Whatever the case, tracking business expenses will surely help you with better decision-making regarding the management of your labor force.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers