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How to Automate Expense Management For Freelancers

Jul 8, 2017 12:22:44 PM

Self-employment is a liberating lifestyle choice. With 53 million freelancers work in the United States, the Great Britain housing 1.4 million freelancers and India being the second largest freelance economy, the independent economy is fast growing in every country. While the flexibility and freedom that comes with the job allow freelancers to work with ease; budgeting and expenses cause unnecessary bumps in the road.

With freelance outdoing the traditional nine to five jobs, it is vital to have all the tools required for efficient functioning as independent workers.

Freelancers are not a part of an organizational workflow and are solely responsible for their finances and taxes. An automated expense management solution will help them achieve this. Though it might seem like a small and somewhat insignificant tool, the lack of an efficient expense management system can cause you to waste a lot of time and resources into claiming your money back.

According to statistics, 57% independent workers have claimed that cash flows have been a major issue when venturing into a project. It is essential to ensure that you get reimbursed for all of your expenses, further permitting you to manage your taxes and prevent any fraud from taking place. Technology is one of the three driving forces for freelancing growth. Therefore, many freelancers are turning towards easy and low-resource based solutions to help them gain the same benefits as employed workers. It is providing the gig economy with an easy approach to manage several business functions. With respect to this, automating the expense management process reduces manual labour and promotes faster reimbursement cycles. Here are two of the most important reasons as to why the gig economy needs to automate their expense management system.

 1. Easy Expense Tracking and Expense Management

Easy Expense Tracking

As a freelancer, you may often incur many low-cost expenses, say a $20 meal while at work or car parking charges. Expenses like these are not easy to track manually. Furthermore, forgetting to cancel monthly payments for subscriptions or software memberships when the job is done only increases your unwanted expenses.

Here is a quick activity you can perform -

  • Find all the paper receipts you have received in the last month.
  • See how many of those purchases you remember making.
  • Think of the number of purchases you made but don’t have proof for.
Clearly, the lack of a good expense tracking system leads to you paying expenses that could have been reimbursed or avoided. Simply taking a picture of the receipt and Fyling it into the expense management system allows you to have an accurate check on your expenses at the end of the month. Even, better if it can automatically extract data from the paper receipt and add it to your expense report. Customized categories allow client-wise or project-wise expense segregation and analysis, further helping you with budgeting. Integrating your account with your credit card will avoid any hassles in matching statements to expenses and setup will Fyle it for you effortlessly.

 2. Doing Taxes is Made Stress-free

Tax Savings

Not many enjoy filing taxes and the faster you can get through the process, the better. Imagine having to hunt for past expenses at the end of the year. By having a trail of your expenses, you can automatically reduce the stress of filing taxes and the time allotted to it. This will also help you track deductibles, thus, helping you save money on your taxes. The ability to generate smart and quick expense reports with the help of an automated expense management solution helps independent workers focus on other important tasks. The ability to integrate them with personal accounting systems reduces the amount of data entry that needs to be done manually as well. This will further help freelancers understand their budget and accurately determine the budget cuts and investments that need to be made in the future.

The lack of a steady income only means that every cent counts and you have to avoid spending money whenever possible. You have to ensure your business is not just an expensive hobby. With close to 45% people using smartphones and laptops for work, fully automating the expense reporting process is something every freelancer should consider.

Your very own laptop or desktop could be your accounting system. Mobile phone cameras could turn into scanners to keep track of receipts and the cloud could store it all for you indefinitely. Not only is this reducing the labour that goes into writing down your expenses (or forgetting to do so) but also dodges the piles of receipts that you promised you would look into someday. Further, allowing you to not waste any time in claiming reimbursements.

Watch how paper receipts can be scanned and Fyled in less than 30 seconds:

 

Fyle is your companion when it comes to managing expenses and tracking your spends. The AI powered email plug-in allows you to claim expenses from receipts in your emails in a single click. You will never have to worry about losing out on receipts with smart receipt management -  all your receipts stay secure in the cloud, accessible to you anytime. The mobile app lets you Fyle expenses effortlessly from your smartphone. Fyle's integrations with other accounting systems and your credit card ensures you need not spend time in reporting expenses.

Considering Freelancers need to be self-sufficient, it is essential to have a smooth running expense management system. Put your tax saving homework on auto-pilot with Fyle. 

Freelancer expense management
 
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To know more, visit this page on Expense Reporting for Freelancers. 

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