Selecting a bank for your small business takes more insight and deliberation than selecting a personal banking account. Since your commercial banking needs are different from your personal banking needs, taking some time to identify the correct business account and other services is an important initial step towards business success. Do you require a savings account? Is having an account you and a business partner can both access necessary for your business? These are the types of questions you should ask yourself in the research phase.

Here are some factors you need to consider when choosing the right bank for your organization.

Location of the Bank

Make your decision according to how often you will need to visit the bank. If you need to physically visit more often, you might want something closer to you. Similarly, if you are in other cities frequently, you may want a bank with a wide geographical spread.

Credit

Smaller community banks tend to be more lenient with new business owners and have more flexible credit standards for opening accounts. This is important to know since it can be difficult to acquire financing from a big financial institution if your company has a bad credit score or has recently launched (has not developed business credit yet).

Technology Integration

Manually logging transactions is a tedious and time-consuming task. Choosing a modern bank that interfaces with your current technology platforms or with applications that you aim to implement in the future are your best bet. At FINSYNC, we know first-hand that syncing bank accounts to back-office software make business life much more manageable. Bridget Chun of Chunogly Productions says, “Having my Chase accounts connected to FINSYNC makes my life significantly easier! It is especially convenient for my accountants when they do my deductibles or while figuring out how much we spend and what we spend it on.”

Added Fees

Fees are typically charged by banks for a variety of services, such as low deposits, overdraft fees, inactivity penalties, wire transfers, and other service charges. These charges can add up quite fast if you don’t pay attention to them and adhere to the bank’s policies. If you think maintaining the minimum balance, for example, would be challenging, consider switching banks.

Incentives

Incentives are a great reward for your affiliation with the bank. One of the most common types of incentives is cashback. The main thing to look for is what kind of benefits come with keeping a certain balance in the account for the said amount of time. It's all about developing and maintaining the practice of routinely holding a certain cash level in the account. You may also pick up additional incentives on other offerings from the bank. Add a credit card and it likely has a rewards program of its own. One important thing to keep in mind is that as your business grows, new or additional banking services may be needed. We recommend conducting a review of your accounts at least every one to two years to make sure your bank accounts still meet your business needs.   FINSYNC has a growing network of lenders who rely on its technology to make quick or automated decisions based on your past, present, and projected cash flow.

The latest trends in Digital Marketing show that social media platforms are quickly evolving into online marketplaces. Moving beyond the realms of creativity and connectivity, they offer a vast customer base for businesses. While there are multiple social media channels across the internet, each platform comes with its own set of advantages and disadvantages. Moreover, there are differences in content types, formats, and audiences. For businesses seeking to get started with social media, choosing a single platform that best aligns with your product or service is a great first step. Then comes the formulation of an effective social media strategy. Let’s explore some social media trends that businesses can leverage in 2021 from e-Commerce to Social Commerce. According to experts, more than 50% of sales across 14 major sectors are happening through social media. In a way, there is a thin line between E-commerce platforms such as Shopify or WooCommerce integrated with WordPress and social media. Platforms such as Facebook and Instagram are offering separate business profiles for dedicated campaigns and direct sales.* The integration of payment gateways and fintech applications is making the process much easier. *Instagram is owned by Facebook and Facebook Ads Manager must be used to advertise on Instagram.

Create Follower Communities

A loyal social media follower group is just as powerful as a team of sales executives. Proper interactions and responsiveness are crucial in creating a robust customer retention management system within the platform. Make your followers brand ambassadors of your product/service. The user-generated content such as testimonials, feedback, etc. can help more than you think in your business expansion. Consumers increasingly respond to relatable stories over rote advertising copy.

Influencers and Collaborations

The power of social media lies in its multiplier effect. Likes, shares, and comments from your network can reach any corner of the world, especially if your content goes viral. At times it requires a push from someone with massive social media influence to spread the word. Influencer marketing is a buzz word in the digital marketing arena. One way to promote your business is by paid collaborations and reviews with influencers across different social media channels. There are even influencer marketplaces where you can read about what industries they promote and how successful they are.

Effective Analytics

Real-time analytics is one of the best rewards of digital marketing. The fact that you are a small business should not drive you away from dealing with analytics. All platforms offer graphical analytics tools that even someone without a statistics background can understand.. Leveraging this data allows you to optimize your strategy and content over time. This will make your marketing campaigns successful by reaching out to a larger, more targeted customer base.

Leveraging New Platforms

With the reduction in average internet bandwidth cost, video platforms are becoming increasingly popular. In content marketing, short videos are grabbing users’ attention faster than other mediums. This clearly explains the rising popularity of mediums such as TikTok. Many companies are already leveraging TikTok influencers for promoting business through short-format videos. These videos can cover product descriptions, reviews, or creative ad campaigns. Small business owners often struggle with low marketing budgets. However, the new social media trends suggest that it can be a very effective low-cost marketing alternative. As you get familiar and grow success with your first platform, you can add others that are relevant for your business. No matter what platform(s) you choose, remember to optimize your profile:

• • Use crisp, clear, well-lit photos.
  • Spell check your written content and be sure you are using terminology your intended audience can understand.
  • Avoid a “ghost town” by posting frequently.
  • Respond to comments, likes, etc. quickly to let your audience know you care.

Now it’s time to choose your first platform. Here are some choices:

• • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • TikTok
  • Alignable
  • YouTube
  • Tumblr
  • Reddit
  • Snapchat
  • Pinterest

Check back next month and we’ll talk about each of these networks’ primary audiences and businesses that may benefit from a presence.     FINSYNC ensures you have the best financing options to grow your business. 

Setting goals for your business helps identify opportunities for success. Achieving success without having a plan in place first is much harder. With 2021 right around the corner, it is time to embrace change and develop a goal-setting strategy for you and your business. A good first step for your business to achieve is to begin setting clear and realistic goals.

Get Started Setting Goals

The process of setting goals begins with determining what you want to accomplish in a time period. Business goals should be objectives tied to the vision for your business. It may sound cliché, but writing down your goals on pen and paper makes it more likely for you to achieve them. According to an article by Inc., you are 42% more likely to achieve your goals if you write them down. In case you feel stuck about where to get started, these are some easy goals you can set for your small business:

• • Reduce business expenses
  • Increase your website traffic with SEO
  • Hire your next employee
  • Improve your social media presence
  • Introduce a new product or service

To help you set the most effective types of goals we strongly recommend using the SMART goal-setting method. You can find several step-by-step blog posts on how to set SMART (Specific, Measurable, Attainable, Relevant, and Time-bound) goals by doing a quick Google search.

Don’t Lose Track of Your Progress

Keeping track of progress allows you to monitor whether you’re on the right track or need to make adjustments. With many different ways to track your progress towards your goals, let’s discuss some of the methods you can use to start tracking your progress:

• • Planning and organizing. Develop a plan on how you will accomplish your goals. It can be as simple as setting dates to check back on your progress or listing out the steps you need to take.
  • Set objectives. This can be especially important if you have employees. Fully understanding expectations increases the likelihood of embracing tracking goals.
  • Create milestones. Think of this as breaking your larger goals into smaller pieces. This will help you assess how far you’ve come and figured out the next steps in achieving your larger goals.
  • Celebrate the small wins. Doing so will help you avoid getting burned out. We live in such a fast-paced world, we always begin focusing on the next big thing. Taking the time to celebrate small achievements helps you appreciate the process towards the right path. In addition, this helps build more confidence.

Build Good Habits

Accomplishing your goals is a direct relation to the habits you form. Building good habits helps you reach your goals more effectively and efficiently. For example, you can begin with improving your time management or setting a work routine. Think of these habits as incremental steps to reaching your goals. Taking the time to look at your organization from a broader perspective will give you greater confidence to reach the next level in your business. Keep in mind you will need to rethink and refocus your business goals as you make progress and your situation changes.    

FINSYNC offers a complimentary 7-day trial with no credit card required. Get started with better finances for your small business today.

As of this writing, the rollout of the SBA PPP (Paycheck Protection Program) is 2 weeks old. From everything we can gather, at this time, hundreds of thousands of "small businesses" have applied for a forgivable SBA PPP loan. The SBA continues to issue "guidance" in the form of Frequently Asked Questions and answers. The headlines continue to ring with negative news about the rollout, including one that says the SBAs computer systems crashed and another that said the SBA is struggling to meet the demand for these loans. That shouldn't surprise anyone, given the speed and size of this program rolled out by the Federal Government. The SBA is responsible for $349 Billion in loans to small businesses, but the banks, credit unions, and other lenders are the entities who have to actually do all the intake for the loans. The SBA PPP is a big, huge, government program, and it's going to have lots of issues. There are more than 30 million small businesses in the United States today. How many of them are suffering in the wake of COVID-19 and the corresponding government shut downs? A LOT! We're trying to make the process a little easier on everyone.

The All Encompassing SBA PPP Guide (free download)

We've created a simple, but thorough guide to the process from the borrower's (small business) perspective, answering the following questions:

• What is the SBA PPP?
• Who is eligible for an SBA PPP Loan?
• What can you use these funds for?
• How much can you borrow?
• How do you calculate how much you can borrow?
• What info do you need to apply for an SBA PPP Loan?
• What amount of the loan is forgivable?

Download the PDF guide here.

SBA PPP Explainer Videos

You can download and read the guide, or get the shorter (slightly more entertaining) version in this video on youtube. It literally answers exactly the same questions as we've listed above. Also, we're sharing more videos almost on a daily basis as we learn things that will help both borrowers and lenders.

Calculate Your Average Monthly Payroll Costs

We've published a calculator (MS Excel & Google Sheets) for small businesses to use to calculate their average monthly payroll costs and to give to their lender to provide thorough documentation of their average monthly payroll costs. You input your numbers, and the calculator generates your maximum loan amount. Remember, the SBA PPP  help small businesses through about 2 months or so of payroll to keep employees employed, so your business can stay in business after the pandemic has ended.

• Download the MS Excel Calculator here.
• Access the Google Sheets Calculator here.

Apply for sba ppp loan online

We've created (what we believe is) the easiest online SBA PPP application in the world! OK, let's not get carried away, but it's really good. So, if you're a small business, you can apply using our online application. If you're a lender of any kind, and you're struggling with the volume of applications, you can adopt ours. We made the process plug and play for lenders, really easy to get started, and we're standing by ready to help you get onboarded so you can accept more applications and fund more loans. Apply online for an SBA PPP Loan here.

Virtual accountants and bookkeepers to help you

Finally, last year, we rolled out our virtual accounting and bookkeeping services, and we've got a network of over 400 vetted accountants and bookkeepers ready to go to help you get through this application process. We base our matches for you  on these criteria:

• Budget
• Proximity
• Industry
• Experience
• Accounting Needs
• Business Objectives
• Bookkeeping Requirements

It's free to get matched. You only pay your new virtual accountant or bookkeeper if you both agree to work together. You can complete the signup in just a few minutes. Get your PPP loan done right with the help of one of these professionals. The CARES Act is a $2 TRILLION program. The SBA PPP is offering $349 Billion in forgivable loans to help small businesses stay in business. These programs are huge, so expect some bumps in the road and a headache or two, but we are here to help you get through it easier and faster.

On April 8, 2020, Nathan Page, Director of Customer Implementation led an informative webinar discussing why banking is key when it comes to accounting. Additionally, the following topics were covered during this 40-minute webinar.

• How bank activity translates to your financial reports
• Tips and tricks for tracking money movement
• The importance of bank reconciliation and re-syncing

The Webinar Video Recording

Click the video below to watch or listen to the full webinar recording. [embed]https://www.youtube.com/watch?v=XVGOvFGlpxU&t=7s[/embed]  

How Bank Activity Translates to Your Financial reports

• Categorizing Transactions. (2:04)
• The description option will translate all of the line items on your financial reports.
• Check dates and clear dates are very important.
• Check dates primarily relate to your financial reports. This is going to show in your income statement and balance sheet. 
• Clear dates are reflected in bank reconciliations.
• The goal is to match what you see in your FINSYNC account to match what is in your bank account.
• You’ll have a drop-down menu of general ledger accounts to choose from.
• The goal of inputting all of the information is to avoid having to do double-entry accounting.

 

• Splitting Transactions. (7:29)
• Allows you to categorize transactions 
• There are templates available for recurring transactions
• The key to splitting transactions is to have one transaction split across several different categories, as opposed to having several separate transactions. 

 

• Attributes, Customers, and Vendors. (10:55)
• Attributes help you filter down your financial reports.
• Great method if you are trying to get more granular with your reporting.

 

• Matching Bank Transfers & Charge Card Payments (14:05)
• Keep in mind this is one fluid movement of money from one place to another.
• This extra step keeps your financial statements in good standing.
• Currently not an automated service, but we are working towards it.

 

• Linking to Liabilities/Assets. (17:28)
• The shortcut menu allows you to quickly link assets & liabilities.

 

Tips and tricks for tracking money movement 

• Payments made/received via FINSYNC. (18:34)
• FINSYNC offers ways to automate the accounting process when someone pays you by ACH or by credit card.
• For more information on payments, we offered a webinar that goes more into detail. You can read more about it on our blog.

 

• Payments made/received outside of FINSYNC. (20:14)
• You’ll have to manually enter the data.
• We have different ways to manage data entries.
• One way is by using the record payment option. By using this option you don’t run the risk of duplicating data.

 

The importance of bank reconciliation and re-syncing

• The difference between synced and non-synced accounts. (27:40)
• Synced accounts use your online login information to pull transactions directly from your bank through our third-party vendor and into FINSYNC.
• Non-synced accounts still get the job done; however, you have to manually import transactions.

 

• Bank reconciliation. (32:29)
• It’s a simple process.
• The goal is to make sure your FINSYNC account accurately reflects what’s going on in your bank account.
• It’s recommended that you do a reconciliation monthly or even quarterly. Therefore, this will help when tax season comes around.

 

• Syncing a non-synced account retroactively. (35:28)
• Firstly, under the settings tab, you will see the sync account option. Then, once you click on it you will be guided through the set-up process steps. 
• You can import transactions up to the last 90 days. Or choose to start from the day you will sync your account.

 

• Using your data to apply for loans. (36:44)
• You can apply for loans through FINSYNC by using your banking information.
• For instance, we have a network of about 30-40 banking institutions, online lenders, alternative lenders, and credit unions.

  In conclusion, for more information and to get started with a 7-day free trial of FINSYNC please visit https://www.finsync.com/.  

Learn how FINSYNC helps start-ups simplify payments, payroll and cash flow — and get access to start-up capital and small business insurance.  By FINSYNC  Being a small business owner is both exciting and stressful. Your to-do list is never complete, and chances are the majority of items on that list are non-revenue bearing tasks. FINSYNC can help you run your business more efficiently with intuitive tools. Meanwhile, save you time and allow you to focus on getting your start-up off the ground. The FINSYNC ecosystem consists of three main pillars: software, service database, and start-up funding.  No matter what stage your start-up is in, your business can take advantage of some or all of these pillars. Here’s how: 

Scale as You Grow

It’s easy to scale your business with FINSYNC’s platform.  If you’re a start-up, you can begin with a basic subscription to handle all of your payments. The platform can be up and running within 24 hours with ACH, check processing and charge card processing. As your business grows and you hire more people. Then, you can add features like payroll, cash flow management, and accounting.  Connecting your bank accounts and handling all of your payments through FINSYNC will give you a real-time projection of the health of your start-up. This is crucial for any business. Therefore, the more FINSYNC features you use, the more accurate your cash flow projections will be.  Another small business start-up resource that FINSYNC offers is free, easy-to-access support. If you have questions or need help with a feature, you can reach out by chat or phone, or access a comprehensive support library online. 

Take Advantage of the Gig Economy

There are two ways you can leverage the gig economy through FINSYNC. First, is by having your independent contractors track time directly in FINSYNC. This way, you can have a better overview of their expense, and you can pay them as a part of your main payroll.  Secondly, you can get access to the expertise of financial professionals like bookkeepers and accountants through FINSYNC’s services network. Your start-up will be matched with an experienced financial professional who is well-versed in your specific industry. No need to waste valuable time on the recruiting and hiring process, or invest in a full-time employee. This on-demand network of vetted financial professionals can support you at every stage of your start-up’s growth.

FINSYNC Partners With Accelerators

FINSYNC works with several accelerator programs that offer excellent support for start-ups. In addition to mentoring business owners that take part in many of these programs, FINSYNC offers participants a discount for its all-in-one accounting platform. Check the perks program at your accelerator or contact FINSYNC Support to find out what start-up discounts are available. Some of the accelerators FINSYNC works with include:

•     Techstars - a seed accelerator from Boulder. The highly competitive program has helped over 1,600 start-ups since 2006.
•     Boomtown - provides seed funding, business resources, company-building curriculum, mentorship, and community. They run 12-week accelerator programs in Boulder and Atlanta.
•     The Farm - an Atlanta accelerator sponsored by Comcast NBCUniversal that offers event space, a prototyping lab and coworking facilities.
•     Atlanta Technology Village - offers mentorship, working space, and pre-accelerator programs for start-ups.
•     ATDC - Georgia Tech’s technology business incubator offers coaching, community, and capital for start-ups.

Taking part in programs like these can help start-ups get a leg up on their new business with invaluable resources and advice.

Streamline Your Processes and Save Time

FINSYNC’s consolidated system can help start-ups save time and work more efficiently so you can focus on growing your business.  Having all of your back-office functions on a single platform makes running a start-up easier for solopreneurs and small business owners alike. There is no need to integrate with additional applications or remember multiple passwords. The consolidated system also makes it easier to manage your workflows.  With FINSYNC, your accountant, bookkeeper, or even a lender can log in and get access to real-time information about your business. This significantly limits time spent faxing, copying, and sending files over email. More importantly, it enables your team to make better decisions and move faster. 

Get Financing Through FINSYNC

The third pillar of the FINSYNC platform is financing. If your business is looking for start-up capital, take advantage of FINSYNC’s network of lenders. There are several benefits of taking this route instead of the more traditional one. First, the application process couldn’t be easier. You fill out one application in a matter of minutes that gets submitted to several lenders.  Second, and perhaps most importantly, your application will only be submitted to lenders who operate within your risk profile. This means that the lenders are more suited for the development stage and the needs of your business. Often requiring less time in business than traditional lenders.  In addition to revenue, lenders typically look at how well you manage your cash flow. With FINSYNC, all of these metrics can be easily documented. Increasing your chances of getting approved for funding.

Shop for Small Business Insurance Through FINSYNC

Is your start-up shopping for small business insurance? FINSYNC’s insurance network can help make this process a lot less painful and time consuming by connecting you with a business insurance broker that best suits your start-up’s needs.  Similar to FINSYNC’s lending network, you simply fill out one quick application to get connected with a broker that will help you shop around for the best rates on general liability, workers compensation or cyber insurance.

A Simple and Intuitive Way to Run Your Business

FINSYNC makes it easier to manage your payments, employees, and contractors. In addition, the platform can also provide you with real-time cash flow projections. As a result, It's easier to make informed business decisions.  Whether you use the platform to automate time-consuming back-office tasks, connect with a vetted bookkeeper or secure funding for your start-up, FINSYNC can help streamline your business operations so you can focus on getting your new business up and running.  Ready to accelerate the growth of your small business? Meanwhile,  Start with a free, week-long trial of FINSYNC to see how the platform can transform your start-up.

Hiring new employees is a considerable undertaking for small businesses. Growing companies also have the option of tapping top professional talent by bringing in contractors.  By FINSYNC How do you know when it’s time to hire a new employee? As a small business owner, you’re used to wearing many hats, and doing whatever needs to get done at any time. Still, even you have to sleep sometimes. If you’re having to turn down clients, preparing to launch a new product or location, or have a specific set of tasks that require a different set of skills than you have, it may be time to bring in some help.  Hiring is one of the biggest challenges for small businesses; in one survey, half of small business owners ranked it at the top of their list of difficulties. From recruiting and hiring the right candidate to setting up payroll and retaining employees, hiring is a huge time and financial commitment. Fortunately, contractors offer another option to help growing businesses scale and complete critical tasks.

Recruiting Talent

Start by writing a job description — you’ll want to consider what skills, requirements, and experience are needed for the job, as well as which soft skills and preferred qualifications would make for the ideal candidate. Be sure to include information about your company, the day to day responsibilities of the job, your contact information. Also request documentation you want candidates to submit, such as a resume, cover letter, or portfolio.  Take your time to really think about this — a well-written job description will help you identify well-matched candidates and attract highly qualified candidates to your listing. Consider including compensation and benefits information to make your job listing more competitive. Once you’ve perfected the job description, it’s time to place an ad. Paid online job boards such as Glassdoor, Career Builder, and Monster.com are a great place to start.  Ask around! Social media is a great place to get the word out, especially LinkedIn. LinkedIn has a paid job board and allows you to see how you may be connected to a particular prospect. If they have a robust profile, this can both signal their professional readiness. It can give you additional insight into their character, working style, and fit for the job. Don’t stop with LinkedIn, though. Post on other social media and get in touch with your network; often family, friends, and business associates will know someone who is just right for the job. 

The Hiring Process

Organize the resumes you’ve received by yes, no, and maybe. Some ways to narrow it down include matching the qualifications that you absolutely need, checking for major errors or sloppiness, and reviewing for soft skills that will fit your company culture.  Once you’ve narrowed down the applications to the candidates who you want to interview, plan out your interview questions and establish an interview process. Be sure to avoid questions about a candidate’s age, race, national origin, or religion, due to U.S. Equal Employment Opportunity Commission (EEOC) regulations.  The best questions allow you to learn more about how the interviewee might function in a given role, how they think, and how they solve problems. For example, in a customer-facing role, you might ask someone to describe how they handled a difficult interaction with a customer in the past.  You can also ask about past experiences where a candidate felt proud, challenged themselves, or assisted others, as well as why they’re interested in your company specifically and how they see themselves completing their first 90 days. Finish up by asking if the prospective employee has any questions for you and establishing next steps for the hiring process. When you’ve chosen the candidate who’s the best fit for your business needs, decide on the compensation that makes sense for the role. Then extend an offer letter. Each state will have different requirements for what must be contained in your offer letter. Be sure to check out your state’s department of labor website. Feel free to call your candidate over the phone and let them know they’ve been hired. You may do this before extending the formal offer letter. It’s a great moment for both of you to share!

Setting Up Payroll

If this is your business’s first time hiring employees, you’ll need an Employer Identification Number (EIN). This is like your company’s Social Security Number. If you have a bank account in your business’s name (which you should, in order to build business credit), you will already have an EIN. In addition to an EIN, which is a federal tax ID, you’ll need a state or local tax ID. Whether you need a state or local tax ID will depend on your state’s individual regulations; check your state’s government website for more information.  All employees will need to fill out and return a W-4 form. Decide on your pay schedule, leave and vacation policies, and which benefits you will offer. Some benefits, such as social security, workers compensation, and new parent leave are required by law. Others, such as disability leave and unemployment insurance, vary by state. There are also some optional benefits that you may opt to offer to employees. For example, health insurance and retirement plans.  Have a plan to administer payroll. Learning all of the complex filing requirements and keeping money moving is probably not something you have time to learn and then keep current on an ongoing basis. Where you can add value on payroll is being sure your team’s hours are correct and reimbursement requests are getting paid. FINSYNC’s cloud-based payroll software can help you automate your payroll along with many other time-consuming back-office tasks, such as invoicing.  

Employee Retention

Experts estimate that it costs upwards of twice an employee’s salary to find and train a replacement. Employee retention starts with hiring the right person in the first place, so interview carefully. Consider the compensation and benefits you’re offering as well. Even if your small business doesn’t have the budget to rival major corporations, you can do your best to be competitive in your field.  Create a positive work environment. Listen to employees’ expressed needs and whatever they choose to share about their day-to-day lives. Encouraging open communication, with ownership and between employees, makes employees more comfortable expressing ideas, needs, and concerns when they arise.  Meaningful praise and recognition from management does wonders for employee morale. Clear expectations and aligned goals help employees feel that their work is valued and valuable. It gives them a clear measure to work against.   Find ways to be flexible based on employee needs. This is where the importance of listening comes in. Considerations such as telecommuting, flexible work hours, a condensed work week, and back-up child care can make all the difference to busy professionals. 

Working with Contractors

The process of recruiting, hiring, and retaining new employees can become a job in and of itself. Especially for a small business owner with so many demands on your time.  It can take an average of 36 days for a company to fill a job opening, and the hiring process overall costs companies an average of $4,425 per employee, and as much as $14,936 for an executive.  Not only is the process itself expensive in terms of money and time, getting it wrong can be costly as well — each bad hire costs businesses an estimated $17,000. Between the required benefits and taxes companies must pay for full time employees, and the additional benefits that you may choose to offer to attract top level talent, hiring costs continue to pile up. According to the US Department of Labor, benefits alone account for more than 31.4% of the average full-time employee’s total compensation.  For many small businesses, contractors are a less expensive option. The hiring process is truncated, turnover is less of a risk to the business. There’s also no need to pay additional taxes and benefits on top of the contractor’s compensation. Contractors are also ideal for projects that don’t require a full-time employee. With contractor talent, you can scale your team up and down according to business needs, temporary needs or projects. 

Find qualified contractors without the hassle of screening and hiring with FINSYNC’s virtual assistance network.

FINSYNC partners with independent professionals in the fields of Bookkeeping and Accounting, Financial Analysis, Corporate Strategy, and Human Capital Management. Fill out a quick questionnaire, and get matched with a vetted professional that fits your business’s needs, projects, industry, and budget.  Growing businesses need support, but hiring a full-time employee isn’t always the most time or cost-effective option. For many small businesses, contractors help to close that gap. They provide high-quality professional services without the challenges of hiring full-time employees. For ad hoc projects, seasonal needs, professional services, and even ongoing work. Contractors are often the best of both worlds, allowing small businesses to tap top professional talent to scale their workforce up and down as needed. Whether your small business is looking to build its team with full-time employees or augment your workforce on an as-needed basis, recruiting and hiring the best fit for your business is the first step to success. FINSYNC helps you centralize control of payments, process payroll, automate accounting, manage cash flow and grow with less time and better results.

Learn best practices for how small businesses can manage reimbursements, and how to create efficient processes for employees and accountants to limit time spent managing expenses. By FINSYNC If you ask an administrator what part of their job they enjoy the least, there’s a good chance they’ll say managing expense reimbursements.  What could be more tedious and time-consuming than sorting through piles of paper receipts, cutting checks and tracking payment processing? What about reimbursement disputes or the difficulty of simply getting sales reps to properly file an expense report?  We’re here to help. In this article, we’ll show you how to manage reimbursement efficiently and how to keep track of expense reports. You’ll also learn expense management best practices and the best way to deal with expense reimbursements. 

What is Expense Reimbursement Management?

Expense reimbursement management is the process in which an organization reimburses or “pays back” an employee. This includes out-of-pocket business-related expenses. For example, treating a client to dinner, or the cost of airfare to a business convention. Expense reimbursement, though simple in principle, is seldom easy. It’s a complicated process that can be as difficult to track as it is to define. Every company has a different expense reimbursement policy with varying criteria for what is considered a business expense.  For example, most travel related expenses like flights, hotels and meals are considered business-related. Therefore eligible for reimbursement. However, only if incurred while performing duties on behalf of the company.  For this reason it is incredibly important that companies not only clearly define their expense management policy, but also implement a method to efficiently manage expense reimbursements. 

How to Keep Track of Work Expenses?

The majority of businesses track work expenses via an internal system which employees use to report their expenses for reimbursement. For example, an employee who travels from New York to Chicago to meet a client may submit his travel expenses for reimbursement by filing specific paperwork. Then, submit his original receipts with the HR/finance department for review.  This is an archaic process that’s plagued by human error and generates mountains of paperwork that someone has to get paid to process. Thankfully, there are several ways to efficiently manage expense reimbursement. 

Expense Management Best Practices

To manage expense reimbursement efficiently, a business must ensure a seamless expense management process via a precise and timely reporting system. In other words, you need to make it as easy as possible for your employees to submit their expenses for reimbursement.  Here are the best practices for efficient reimbursement management. You can implement these to improve the process and minimize unwanted costs.

Clearly Define Your Expense Management Policy

It’s best practice for a company to implement a clear and unambiguous expense management policy. Your expense management policy should include all employee reimbursable expenses and criteria to exclude personal expenses.  Once you have clearly defined your expense management policy, you must communicate it with all employees so that they may learn how to track and report their business-related expenses. 

Make it Easy to Submit Expense Reports

To efficiently manage expense reimbursement a business should make it as easy as possible for employees to correctly track their business-related expenses and submit expense reports.  The best way to provide employees with a simple way to submit their expense reports is via a paperless expense reporting system. Preferably one in which employees can scan/photo receipts with their mobile device while traveling. 

Implement an On-Time Payment Mechanism

Timely submission of employee expense reports is critical to managing reimbursement efficiently. The best way to do this is by eliminating a multilayer approval process. Then, sticking to a fixed timetable for approving reimbursements. Learn more about FINSYNC's payment platform.

What’s the Best Way to Manage Expense Reimbursements?

The best way to manage expense reimbursements is by streamlining the expense reporting system all together. The more roadblocks you remove from the reporting process, the easier it will be for your employees to accurately report their expenses. Integrated expense tracking software can simplify the task of expense reporting and eliminate the time-consuming task of data entry.  Besides saving time and money, expense tracking software improves efficiency and enables your business to effectively manage expenditure according to your company’s reimbursement policy.  FINSYNC bill pay makes it easy to track business-related expenses and automates what your employees once had to do manually. The software integrates with your back office, providing your team with a portal to tag expenses to specific projects, track time and submit expenses for reimbursement all from the same place. Since everything is handled in a single portal, it’s much easier to get employees to submit reimbursements on time. FINSYNC’s suite of software tools is designed to free up your time. That way you can get back to growing your business. The platform streamlines your back-office operations to help you manage your business better and with less effort. Our automated online expense management software is not just cost-effective. It's a convenient solution for an inefficient process that also integrates with our other cash flow management tools. You can also use FINSYNC to pay for business expenses using a credit card, even if the vendor doesn't accept credit cards. Ready to increase the efficiency of your expense reimbursement process? Take FINSYNC for a test drive with a free week-long trial.