Does Your Shopify Store Need Automated Expense Reports?
Updated March 22, 2023.
Traditionally, expense reports could only be generated by people with a specific skill set. But now there are various other options, such as mobile apps and web-based platforms, that can automate expense reports to help streamline the process. These automated expense reports can be a resourceful tool for e-commerce businesses like Shopify stores.
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What Are Automated Expense Reports?
Automated expense reports are generated using software that analyzes and categorizes employee or owner expenses. The software can use pre-defined rules to ensure that the report has no missing information and that the expenses abide by the company’s policies.
There are various advantages of using an automated process, such as:
- Saving time
- Improving accuracy with less room for human error
- Increasing visibility into expenses
Employees can easily capture receipts on their mobile devices or desktop computers. The automated software then uses artificial intelligence (AI) and machine learning algorithms to recognize and extract data from receipts, invoices, and other documents, making them more efficient and accurate. This data is then categorized and populated into expense reports.
» Learn more about keeping track of your e-commerce expenses
Why Does Your Shopify Store Need Automated Expense Reports?
You may want to focus on improving aspects like sales techniques or customer retention for your Shopify store, so here's how automated expense reports can help give you the space to direct your focus where needed:
Reduce Time and Effort
Automation saves time and requires less effort from employees and business owners since it removes the need for human intervention. This can minimize opportunities for errors. Additionally, it can help with other business processes, like sales reporting, by providing faster more accurate overviews that can inform whether your revenue can sustain your current expenses.
Better Accuracy and Compliance
With a lower risk of errors because of AI and machine learning algorithms, businesses easily can gather detailed expense reports that align with their policies. For example, let's say an employee goes on a business trip and the business wants to reimburse him. The employee captures the expenses manually and doesn't include all costs accurately. With automation, the employee can capture receipts, and the software will automatically categorize the expenses. Automation also helps in business planning and fraud prevention.
Make Informed Business Decisions
By leveraging expense data in combination with sales data, employee data, and other key performance indicators (KPIs), Shopify store owners can gain a comprehensive view of their business and make data-driven decisions to improve it. For instance, if a Shopify store owner wants to improve profitability, they can use automated expense reporting software to analyze expenses by categories, such as advertising, inventory, and shipping. Using this information, the owner can reallocate resources based on necessity and cut costs if needed.
Streamline Accounting and Tax Reporting
Because automated reporting provides accuracy quickly, there's less likelihood of facing tax audits. Additionally, these reports can be integrated into your accounting or tax reporting software to save time. Let’s say an e-commerce business wants to file its taxes for the year. Previously, the owner would have to gather all the receipts, invoices, and other documents and feed them manually into tax reporting software. Automated expense reporting can streamline this process by categorizing expenses, detecting duplicates, and calculating taxes.
» Explore the most common e-commerce expenses and how to reduce them
Streamline With Automated Expense Reports
Automated expense reports offer several benefits to Shopify store owners. They can save time and effort by automating data entry and calculations, improving accuracy, and providing real-time data. It is a must-have tool as it effectively manages and tracks expenses and provides insight to make improved business strategies.
With BeProfit's help, you can easily assess your Shopify store data all in one place. You can conveniently track expenses, monitor your profitability, and break down complex data to make more informed decisions that can help your business grow and stay compliant.
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