12 May 2022
5 mins read

Expense categories: Why you need them and how to use them

Expense categories can help businesses stay in control of finances. They help maintain more precise budgeting, forecasting, and speed up accounting; especially when you can customise the labels to sync up with your accounting.

Trish Toovey

FAQs

Expense categories are important for CFOs and finance teams because they allow you to identify how your company’s budget is being spent by activity. This will allow more clarity when it comes down to analysing company budgets and assessing where employees are spending the most. In order to maintain a good level of control over your company’s finances, it is essential to understand where each penny is being spent. This can only be done through careful categorisation of expenses.

You can begin to optimise future budgets by understanding which categories of expenses are the most costly for your company. For example, if you find that travel is a significant expense for your organisation, you may consider ways to reduce this cost in future budget periods. This could involve looking at alternative methods of travel or negotiating better rates with travel agents or providers.

Payhawk’s expense categorisation feature will enable you to manage company expenses more efficiently by providing you with a clear and concise overview of where your company’s money is being spent. As a CFO or member of a finance team, this will give you valuable insights into making informed decisions about where cuts can be made in future budget periods or which areas of expenditure may need more attention. In addition, this feature will also help to ensure that all company expenses are correctly accounted for and allocated to the appropriate department or cost centre.

We offer all our prospective customers the opportunity to Book a Demo so that we can share all of the features of our expense management system before you decide whether it’s the right solution for your business. If you have any questions about our software or how it can benefit your organisation, please don’t hesitate to contact us. Our team would be more than happy to discuss your specific needs and provide you with a demonstration of the software.

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