A successful business is a profitable business. Though, this is hardly a Eureka statement, more one that’s simply common sense, it’s no less important for businesses to soundly understand in a competitive commercial marketplace.
Whether you have a small, yet profitable SME or are the CEO of a multi-national, blue-chip businesses, keeping a weather eye on your commercial expenses is paramount.
Now, as a director, chairman or CEO, you’ve probably got enough on your plate. We get it. When all’s said and done, the buck stops with you. The final decisions are yours, as are the responsibilities.
But who ever said that knowledge and acumen were anything but key drivers to sustained success?
Isn’t having a resounding understanding of your commercial expenses and how you can reduce overheads to maximize profit whilst proficiently servicing your clients and keeping employees happy the name of the game?
Tracking all your receipts by employing an efficient OCR receipt parser is just common sense. But, as valuable as this is, it’s only the tip of the iceberg. Understanding how to manage your money is more than transferring boxes and boxes of paper receipt data to the cloud. There are three separate intrinsic reasons why it pays to track your businesses expenses.
Interested in learning of an ethos or process that could be losing your business money? Keep reading until the end of the blog to learn of ways to hone your practices and make your commercial revenue inflate.
A Level of Financial Awareness
Okay, let’s be honest for a moment. Regardless of whether you have comprehensive knowledge of receipt parser API or your business model, if you don’t know where your money goes each month, you’re going to struggle to maximize profitability. Tracking your expenses – even smaller ones, like postage, coffee for the office kitchen, or paying for a nominal charge for more cloud storage – could save you in the long run.
Why? Small expenses often add up over time. All too often businesses neglect to account for smaller expenses, resulting in higher running costs. Think of it this way, let’s say that once a week, say a Friday afternoon, you run to Starbucks and buy your team a coffee. A nice gesture, right? A Starbucks coffee in Dubai generally costs around 16 Dirhams. Let’s say you buy ten for your team. That’s 160 Dirhams. Now, times that by 52 weeks in a year and 8,320 Dirhams a year on Starbucks. In dollars that’s $2,246 or £1,747 – on coffee a year!
Can you really afford to not consider 8,320 Dirhams (or $2,246 / £1,747) in expenses every single year? Understanding your spending habits, record and track expenditure with an OCR receipt parser and you’ll maximize your profits. Period.
You Won’t Pay Taxes You Don’t Owe
Who wants to pay more tax? It’s a safe bet that the answer to that is no one. But, did you know that you could be paying more tax than you realize without even knowing? If you’ve been a mite lackadaisical about keeping track of your expenses and neglected to use an OCR receipt parser platform, you may not be getting the most from your tax-deductible expenses.
For this, you need to have receipts and documentation to prove what you spent was a necessary business expense. Frequently overlooked expenses include travel, vehicle mileage, education and training, inventory, client entertainment – even homes office purchases and bad debts.
Have you claimed back what you’re entitled to? If not, it might be wise to invest in a receipt OCR platform with an intuitive AI-powered receipt parser API. You could save thousands every year.
Claim Every Available Credit Card Reward
We know, we know. Many businesses approach taking out credit cards with a degree of trepidation. But credit cards don’t need to be a millstone around your neck. Of course, conservative spending should be observed but, there are also rewards that should be taken advantage of, rewards that all too few people don’t claim.
Many credit cards offer attractive terms to entice customers. Some offer 5% cashback on a variety of purchases whilst others offer customers the opportunity to redeem points and claim discounted or free flights and hotel stays. Do you or your employees travel a lot? If so, why not choose a credit card with terms that appeal to your business processes?
Additionally, and perhaps more importantly for sustained commercial success, tracking expenses allows businesses to provide employees with prompt expense reimbursements for expenses like client entertainment, petrol and airline tickets out of their own pocket. Why is this important? Who doesn’t want to work for a company that proactively reimburses clients quickly?
It pays to keep track of your expenses – in more ways than one. If you want to maximize profitability, retain the best employees and operate a revered business, you need to invest in an OCR receipt parser. Why not do it today? What have you got to lose?