Spend Control

How to Nip Your Out-Of-Control Business Spending in the Bud

Out-of-control business spending has serious consequences. Yikes. The good news: there is a solution to maintaining cash flow and controlling company spend.

Every business spends money. Every business needs to control its spending.

It’s also exciting to grow a business and sometimes you grow faster when you spend more. And when money is coming in… it’s easy to lose track of the day-to-day spending of your money. After all, you trust your teams to be fiscally responsible. But not everyone can be, and that’s why you have a finance team to help you make sense of your dollars and cents.

 But when the spending gets out of control, that’s when things can start to get dicey.

Gif of Alec Baldwin saying "Your spending has gotten out of control".
Take note 📝 : When a company controls its spending, it doesn’t always mean cutting costs. Spend control is when a company is able to manage and monitor its outgoing cash flow. It just means budgets are adhered to, expenses are tracked and approved, and you know who is spending the money and why.

Out-of-control spending has consequences for your business:

  1. More chance of being defrauded (intentionally or not)
  2. More chance of making mistakes (human error is unavoidable)
  3. More work for your finance and accounting teams (thanks to manually checking and inputting expenses)
  4. Less financial planning accuracy (harder when spending is out of control)

More fraud 🕵️ 

Whether intentional or not, there is a risk of fraud when it comes to business expenses. This can be as innocent as losing a receipt (*ahem*) and rounding up a few dollars on your expense report.

Or someone’s account can get hacked online and their corporate card gets used for fraudulent charges. Almost half of Americans (127 million) have had a fraudulent charge on either their debit or credit card, for approximately $8 billion in attempted fraudulent charges.

What’s there to do? Small businesses can’t afford (literally and figuratively) to have their credit cards taken for a virtual spin.

The solution? Spend control and real-time card management

Make sure your corporate credit or debit cards let you control spending and manage your employees’ cards in real-time. ClearSpend does both. You can set daily or monthly limits, and even get as specific as which merchant categories a card can be used for.

For example, Olivia in Operations can use her card only for gas since she’s on the road. But Stephanie in Sales has a $500 monthly spend allowance for restaurants when she’s entertaining clients. 

And you can create an unlimited number of virtual cards directly from your dashboard and manage each of them in real-time so you don’t have to wait on hold for the bank to clear a transaction again.

More mistakes 🖍

We’re not judging, but human error is a thing. No matter the job.

When employees have to fill out their expense reports manually and your accounting team has to process those manually, the risk of mistakes is not zero. In fact, it’s much greater than zero. (Again, no judgments, we’ve all been there!)

If you catch the mistake, then you have to manually fix it. But if no one catches the mistake, then… no matter where the error stems, the error exists and can have a chain reaction to all the financial reporting that one little expense report is linked to.

The solution? Accounting integration

Say buh-bye to spreadsheets. ClearSpend lets you integrate with your favorite accounting software, like QuickBooks. This way, no more manual inputs, and no more mistakes. Your ClearSpend dashboard connects directly with your accounting software so that your categories and receipts will automatically be synced.

More work 🛠

Receipts. Receipts. Receipts.

Probably one of the most frustrating parts of any accounting job is asking for and reminding everyone to keep their receipts. To the sales manager or HR director, this might seem tedious, but to your CFO, it’s imperative. 

It helps Finance keep track of expenses, categorize them correctly, connect spending to the appropriate budget, gather approvals, and report with 100% accuracy. Oof. That’s important paperwork.

The solution? Receipt management and expense tracking.

Let’s make it easier for the fine folks in finance. Anyone with a ClearSpend Go Card can attach receipts right from the ClearSpend app as soon as payments are made. That way, there’s no need for anyone to keep a stack of scrunched up in their wallets. What’s more, expenses and payments can easily be categorized also in the app or dashboard and make your finance team’s job way easier (with less mistakes *wink*).

Less planning 📈📉

Managing a company’s finances is hard work and takes a lot of planning. But if spending is out of control—or worse, if you don’t know how your company is spending—it’s harder to stick to budgets and see your revenue grow.

Your accounting and finance teams need to know what’s going in and what’s coming out so they can plan ahead for each quarter. Without accurate planning or reporting, your finances will suffer, and it’ll be harder to manage what each department spends.

And that’s when companies get in trouble.

The solution? Budget allocation and management.

ClearSpend lets you create a budget, allocate funds to the right departments, then limit spending to approved merchant categories only. You can also easily track expenses straight in the app or dashboard, and control spending limits for each and every card, on a daily, weekly, monthly, or even per-expense basis. This way, budgets will never go over and your books will always be balanced.

Get your spending under control

Don’t let your corporate spending get out of control. Instead, learn more about how ClearSpend can help you regain control.

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