Many people dream of building and scaling a successful company. However, expense management can be a challenge for owners with multiple locations. Organizations that fail to control expenses lose money or will eventually shut down. Managing expenses is simple in theory, yet complicated in practice.
Effective expense management is a critical component for maintaining business solvency. Every business is responsible for handling expenses such as rent, overhead, and supplies. Although expense management is challenging for a single business, having to deal with multiple locations further increases the complexity.
Handling expenses across multiple locations can be difficult due to disparate data sources and a lack of coordination among entities. Smart business owners invest in solutions that simplify the multi-location expense management process.
Why is Expense Management Different for Multi-Locations?
Managing the expenses of multi-location companies comes with a number of inherent challenges. Paying bills, splitting invoices, and performing proper accounting are common recurring expense management tasks. Furthermore, each time expenses are paid, the ledgers of each entity have to be updated. This can be time consuming and tedious for business owners with multiple locations.
Let’s say you’re the owner of a hotel franchise. At the end of the month you realize multiple locations are running low on toiletries. You decide to send a bulk order for 5,000 rolls of toilet paper and 20,000 trash bags which will be evenly distributed between five hotels. However, you have to manually split the invoice across each location. This requires you to manually break down the expense and categorize it by entity. Then your accountant or bookkeeper has to go and create journal entries in each business’ ledger. Although this was a simple supply order, imagine having to go through the same sequence of steps for multiple expenses on a recurring basis. This can result in countless hours spent on repetitive accounting tasks.
Owners with multiple business locations typically use a single, centralized team to manage all of their back-office tasks. Although this decreases administrative costs per entity and lowers prices when purchasing in bulk, it can make life more challenging on the accounting side. What if there was an easier way to manage your multi-location expense management tasks? That’s where Docyt can help.
Automate Your Multi-Location Business Accounting with Docyt
Effectively growing and scaling your business requires having confidence in your accounting and expense management procedures. Using accounting automation technology, Docyt simplifies complex accounting for multi-location business owners using artificial intelligence.
Let’s revisit the previous example, but this time using Docyt. You decided to place a bulk order for 5,000 rolls of toilet paper and 20,000 trash bags for your five hotel locations. No more manually splitting costs and recording individual journal entries. Docyt will automatically split costs across businesses, create journal entries, and settle all expenses. Docyt will even help you transfer funds from one business to another. Users can create split templates for payments that are recurring and keep track of all balances between businesses. Docyt helps users quickly identify discrepancies in any expenses and continuously updates the ledger.
Docyt makes life simpler for business owners. If you’re searching for a centralized accounting software platform that will help you manage expenses, Docyt has you covered.
Docyt is Custom-Built for Multi-Entity Accounting
Docyt helps multi-entity business owners simplify their accounting processes and expense management. Easily split expenses, settle expenses, transfer funds, and automate journal entries across all businesses.
If you’re looking for a tool to simplify your complex multi-location expense management process, Docyt can help. Schedule a free consultation today.