How to track business expenses while reducing credit card fraud

Every business wants a more optimized way to track business expenses on a daily, weekly, and monthly basis.  Combining those features plus securing against fraud and you get the expense management and budgeting software called Divvy.  Credit Card fraud happens to everyone.  Unfortunately, some individuals and businesses security get compromised more often than others.  Nevertheless, it is recommended to prevent these fraudulent activities before they happen.  Virtual credit cards and placing spend limits on the services applied to the credit card numbers is a great way to regain control of all transaction activities.  Some of the best features include the ease of using the phone for categorizing transactions with a simple push notification prompted you to categorize a pre-populated transaction, the clean browser interface that highlights those still pending uncategorized transactions, and last but certainly not least is the automatic ACH you choose for weekly or monthly withdrawals from your business checking to clear your debt with Divvy.  Therefore, there’s never that feeling of spending more than you have.  The ability to track your business expenses has never been so easy.

Virtual Credit Cards

Virtual credit cards are exactly what you imagine to be.  These aren’t physical cards.  Although, physical credit cards can be distributed among your organization’s team and the same limits to funds can be managed through the Divvy interface too.   This particular virtual credit card illustrated above is categorized as an “office expense” for all ecommerce activities including Amazon.

track business expenses

 

Categorizing Transactions – Expense Activities

Categorizing credit card transactions and all your expense activities through Divvy is an amazing way to regain control of business spending habits and introduces questions to leadership as to why we may do the things we do.

 

Create Categories in Divvy and setup auto coding

This is a very important step if you would like to optimize the full benefits of Divvy.  However, some serious collaboration is required with your bookkeeper or accountant to make this process work.  These accounting professionals already have a process for what is categorize as what and perhaps their naming convention may be different from other like-minded professionals.   Need an example of categories and sub-categories?  No worries, we created a whole post on categorizes transactions in Quickbooks and for other bookkeeping software as well.  Not sure where to view and view export those categories?  We circled some category example in the illustrations below to get you inspired.  You can then export all the transactions to Quickbooks to get whole P&L picture.

 

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There are several ways of performing bookkeeping data entry in Quickbooks.  We track business expenses transactions in Quickbooks by importing the QBO file and viewing the transaction list.   The QBO file can simply be double clicked on, option 2 is select “banking” and option 3 is locating “Bank Feeds” in the left hand pane.  All transactions can be coded from that point forward.

track business expenses

 

 

Here’s the expanded view of transactions and what remains to be categorized.  Hopefully, Divvy will fix so you don’t have to categorize twice over.  As of right now, all Divvy coded transactions remain under memo.

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Budgets

Budgets can be anything you want.  It may be recurring or onetime. It may be a one to one relationship, expense categories to related to budgets:

  • Insurance
  • Office Expense – IT Suppliestrack business expensesMaybe someone is traveling and you want provide him with a card and a budget associated:
  • Software for Resale
  • Etc

Note: The “General” budget is created by default and individuals may default to that.  You can always delete the “General” budget.  Regardless, the user can’t spend from that budget until you assign funds to them.

  • Individual Employee Names
    • Bob
    • Karen
    • Ted

Perhaps, there’s a department called “customer support team” and you want to keep them happy so you allocate funds to them

  • Customer Support Team
    • Individual Support Team Names. Physical Credit Cards?
      • Bob
      • Karen
      • Ted
      • Rachel

 

Increasing Budgets Temporarily

Simply edit the budget in question, adjust the budget limit, and know that recurring limit will reset to $2000 as illustrated below.  Alternatively, the admin of the budget can “send funds” to that person that needs the funds.

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Credit Card and Reimbursement Challenges

One corporate card and lots of personal credit card reimbursements.  Employees love Divvy because it is easy to switch budgets or see who the budget owner is.  Controllers and bookkeepers love it for their own reasons – namely because it eliminates manual processes and the need for reimbursement forms.  The big difference is that people feel empowered because they are trusted to be accountable.

track business expenses

Track what Budget was overspent

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Great!  But what about my reward points?

Credit Card reward points are on full display on the company dashboard.  Divvy is making great strides in the rewards section in ’21.

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Summary of how to track business expenses while reducing credit card fraud

Divvy is an awesome app to see exactly where your business is at with your budget and assess how your money is being spent.  I love the ability to track business expenses while reducing credit card fraud.

 

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