We don’t want you to choke on your daily cup of tea, if you happen to be enjoying one right now, but here’s one fact that, for some reason, is still not talked about as much as it should be: failure to effectively track expenses can drive a business into the red. End of story.
You may think we’re being overly dramatic, but this applies to your company just as much as any other around you. It’s really no longer a question of “if” you should track your expenses, but “how” to do it to stay on the edge without breaking down under the burden of extra work, especially when it already monopolizes most of your 24 hours.
Well sure, it doesn’t take a rocket scientist to realize that spending is not something to be taken lightly in a money-driven world. You are probably already tracking where your money goes in a more or less purposeful manner. But then again, there’s a difference between looking through the piles of receipts every once in a while, and keeping your spending organized and recorded as you go. But how is this even possible to follow all the many and various expenses closely AND in real time? You certainly don’t have to go it alone – we guarantee that by the end of this article you’ll have a head full of fresh inspiration and be all set to build a financially healthy business!
The “why” in a nutshell
The benefits of keeping a finger on the pulse of your spending go way beyond just freeing your pockets from the mess of crumpled receipts and are potentially life-changing. Expense tracking inspires a proactive approach to budget management since you can spot the exact moment it starts to lack balance and know how to get it back in tune with your financial reality. After all, you know what they say:
A budget is only as good as the data used to put it together.
But that’s just one way to look at it. There are plenty of other benefits lined up if you track your expenses, including:
Eliminating wasteful spending habits
When you monitor your spending, it makes you actually think before you spend. Once you have a firm grasp of how much money you have spent and on what exactly, you will be less likely to allocate money on non-essentials in the heat of the moment.
Promoting positive financial habits
Keeping tabs on your expenses works wonders for cutting down on at least some of your non-useful spending habits, making room for saving and investing. The longer you stick to your budget and control your cash flow, the more money will go toward your set financial goals.
Recognizing the actual level of business profitability
A number of companies, more than you think, suffer from one major weakness – they get all fired up about the growing level of sales (who wouldn’t be?), but just because they don’t itemize their expenses, they end up assuming that their business is more profitable than it actually is. From then on, it’s only a matter of time before overspending occurs, which can ultimately lead to business failure. Contrasting the inflow with outflow is the only correct way to calculate your company’s true profitability rate.
Reduces financial stress
The feeling of uncertainty you experience when you can’t be sure that the amount you have available will cover all your bills can cause a bit of stress, to say the least. The more discipline you apply to the habit of expense tracking, the more likely you are to get rid of the anxiety you have about your money, which ultimately translates to an improved health.
Gives a sense of fulfillment
It’s a great feeling when your decision turns out to be the right one, isn’t it? Keeping a close eye on your spending drives an actionable insight that empowers effective budgeting and helps you achieve the standard of living you desire. Result – higher levels of financial confidence and work satisfaction.
Now, onto the “how”
The first step to develop a healthy habit of tracking expenses and thus a more spending-aware lifestyle is to understand why it is important. The second step is to figure out how to do so skillfully yet with minimum effort.
You will find a whole lot of different apps that can help you track down all your expenses effectively and without the stress, but none of them designed to offer seamless WHMCS integration. That is where we come into play.
Our just finished Expense Tracker For WHMCS unlocks an exclusive space within your system where you are free to record every expense you make. Whether one-time or recurring, all purchases will be stored safely along with key details such as the time, amount, vendor, related product and currency. The module is additionally equipped with separate lists for transactions and vendors to help you maintain full control over your financial choices.
Over time, as Expense Tracker For WHMCS builds an overview of where your money goes, you will also get to see a better picture of your actual spending patterns presented in an easily digestible form of reports and statistics.
The idea of increased control over your finances speaks to you? Luckily, you don’t need an accounting degree to learn the ABCs of expense tracking. Rush straight to our marketplace and check out all the features we’ve crafted with the intention of helping you stay on top of your money!