5 Excuses de-bunked: take a new look at expense management
Solo Expenses help you overcome the fear of change that comes with new technology that will make your life simpler, your business more effective and your profits potentially larger.
It’s the classic schoolboy excuse: “Please sir, the dog ate my homework.” As a reason for failing to hand in homework, that story holds about as much water as a colander. Yet schoolboys may still be using it, and expecting to be believed. We all know it’s not true – and even if it were, the hapless scholar would be better off thinking of something else to explain himself. But in business, equally-transparent excuses are used – and accepted – to mask the fear of change. The number of people who keep on banking with the same old bank simply through fear and trepidation is the perfect illustration of that. We’d like to look at the area of managing expenses, and de-bunk some of the myths surrounding the reasons for failing to change
Five expenses management excuses
1. I’ve got bigger things to worry about. There are few things in business worth worrying about more than keeping your costs under control. And you can’t do that unless you have an accurate record of what they are. It’s too easy to spend money without recording it, and with all those other pressures, you’ll soon forget. Using the right method to record expenses when you incur them means you won’t have to worry about it at all, so that’s one thing off your mind right there!
2. I already have a system. Yes, and you’ve probably used it for years. To follow through with that thinking, we’d still be coming to work by horse and cart and working by candlelight. Evolve or get left behind. Open your mind to new thinking; you’ll be surprised how easy it is.
3. Changing is too expensive. That’s a popular myth, and it’s completely untrue. As a sole trader you can monitor all your expenses for nothing with the free Solo Expenses app that you can download to your smartphone in minutes. We provide an opportunity to upgrade, and enjoy even more benefits, for only £2.49 a month. There’s probably more money lurking down the back of your sofa.
4. Technology intimidates me. OK, we understand that. To be honest, it intimidates us sometimes too. That’s why we’ve made Solo Expenses really simple. With our system you can record expenses with a flick of your thumb. What could be simpler than that? We’d suspect that, far from being complicated, our system is easier and more effective than the one you’re using.
5. It’s not a priority. Well, maybe it ought to be. What are you in business for? We’d guess it’s to make money. If you are doing, then hats off to you. But ask yourself this: Are you making as much as you could be? Simply by monitoring your spend accurately you’ll be able to see where you’re wasting money, and perhaps even where you’re overpaying tax. That last point alone has got to make Solo Expenses worth a look.
Five reasons to revisit expenses management
Why … you should look more closely at expenses management. Over a period you’ll be able to see trends. You may spot areas in which you’re being wasteful, and where changing your working pattern might save money and buy you more time. You may find that you’re not claiming every expense that you could be, in which case you may be paying too much in tax too. The tax you pay is based on the profits you make. ‘Profit’ is your company income less its costs, which include expenses. Therefore, any unrecorded expenses will increase the profit, and you’ll pay tax on them. Oops.
When … should I record an expense? The moment you incur it. That’s why technology on the phone in your pocket is perfect. Leave ‘capturing’ the spend until later, and that’s just something else to remember. What could be simpler than ‘click and forget’, leaving you to get on with something else?
What … is an expense? All sorts of things drop into this category. Business mileage is chargeable at 45p a mile, then there are subscriptions to professional bodies, equipment you buy that’s necessary to do your job, or entertaining clients. A chat with your accountant will give you a much clearer picture.
Where … should I record it? Wherever you are. In a petrol station, a café, a DIY store – wherever you happen to be.
How … can I do that? With a flick of the thumb through a dedicated app designed for the purpose. somewhere you have access to all the time. Today, that’s your phone, which is far more than a phone. It’s a computer you can make phone calls on. SoloExpenses is available to download onto it now. Visit our web site for more information. Or are you happy to continue letting the dog eat your homework and your profits?