With the budget of a mid-sized company, gated communities today go through a large volume of financial transactions. As self-regulated bodies, they are responsible for the general upkeep and maintenance of society premises and assets. This can involve high expenditures that must be managed within the society’s limited income streams. Hence, it is important that expenses be monitored closely.
ApnaComplex’s award-winning ERP accounting and billing module tracks expenses to facilitate budgeting and transparency. The automated feature offers invaluable data insight that can be further leveraged to understand the pattern of expenditure and where excesses can be curtailed.
Benefits of automated expense tracking
From a legal standpoint, a management committee is required to comply with annual state audits where they have to present their expenses among other financial reports like balance sheets, cashbooks, investments and lendings. They are also required to present these reports during the Annual General Meeting for the scrutiny of all members.
Hence, an MC is legally required to prepare expense reports that must hold up to rigorous scrutiny. ApnaComplex’s automated expense tracker makes the process smoother, more convenient and efficient. Here are a few other reasons to switch to digital expense tracking:
Automated process: With an automated process, you don’t have to bother about tallying your payments. It also enables us to pull up expense reports for any given period instantly, saving both time and effort. Automation also reduces chances of omissions and human errors.
Know your expenses: A digital accounting module allows us to pinpoint every expenditure. You can trace the exact spend under each category, whether it’s salaries or asset management. It tells you how much money was spent, what was purchased, and what was approved.
Analyse expenditure: Expense reports are extremely handy tools for analysing expenditure patterns. You can identify areas of over expenditure and track root causes. For instance, inventory expense records can throw up data on items where you might be over-spending on equipment repair. You can use the data to take a call on whether to continue with the Annual Maintenance Contract or to upgrade to a newer model.
Deciding budget allocation: The analysis of expenses is an important part of financial planning. Past data can tell you about expense patterns and ensure that your allocations for various projects and departments are on-point. The ApnaComplex accounting module also offers automated budget variance reports that show how far you may have deviated from budgetary outlays. Ultimately, these tools are designed to improve accuracy in budget allocation.
Taking strategic decisions: Tracking expenses is integral to strategic decision making. It can help you take critical decisions on fund allocation for important projects, decide vendors, and plan policies to reduce expenditure.
Audit-ready reports: With ApnaComplex’s automated accounting you can get audit-ready reports at any time. The process ensures that the reports are updated with latest data and in line with the best accounting practices.
Improving operational efficiency: ApnaComplex automation is key in improving operational efficiency in accounting, particularly in expense tracking. For instance, you can do a bulk upload of expenses from excel or CSV file in one go. Since the platform is integrated with bank and cash accounts, each expense is automatically recorded in the account statements. Apart from other benefits, this also eases the process of reconciliation of accounts.
Consolidation of accounts: As an ERP, ApnaComplex consolidates all expenses on one platform, creating a comprehensive overview of expenditure. By tracking different capital and maintenance expenditures, it ensures that we are able to track every bill or invoice, whether it is related to inventory management or salaries. Since every expense has to be recorded at origin, there are minimal chances if explained entries.
Expense tracking is a critical part of financial planning. Under a legacy system, the biggest challenge lay in consolidating different accounts. Tracking expenses would involve tallying different accounts, from salaries to maintenance. ApnaComplex creates an easy solution through an automated process that consolidates all expenses on one platform. This makes the process significantly more efficient, while removing unnecessary errors.