Imagine you’re looking at last year’s company-wide spend report.
At the top of the list are necessary expenses like employee salaries, healthcare costs, rent/utilities. Other major expenses, like software subscriptions essential to each department and marketing expenditures, can take up a hefty portion of budget, too.
These categories tend to be top of mind and are deeply analyzed on an annual if not monthly basis. They often represent 80% of overall spend and are critical to the company’s mission.
But what about the other 20% of company spend? It’s a long list of one-off and recurring purchases that individually don’t add up to much in comparison. Things like furnishing a new wing, daily cups of coffee, equipment rentals, pens, printer paper, snacks. Unexpected travel. Reimbursing dinners. A locksmith to fix the front door. Replacing broken desk chairs.
These purchases are often made on different credit cards or under personal accounts, and the process is sloppy and difficult to manage. Trying to categorize purchases, analyze trends, or even track down receipts is a time-consuming, painstaking process. Oftentimes, due to lack of resources, this spend is lumped into the dreaded “miscellaneous” category.
This is tail spend.
Similar to Mint.com, software is available for businesses to have a better gauge on tail spend, to track what you’re spending while you’re spending it, and to save you countless hours on end-of-month reports.
With OfficeLuv, you can get granular with your data. When making a purchase, items are coded under specific categories like coffee, bathroom supplies, office supplies. You’re able to create your own categories, too, to easily track just how much spend is going toward holiday candy, for example.
After each purchase, the Insights page highlights your spend to budget so far, spend by category, and even spend by vendor. You can upload receipts from external purchases or services (the aforementioned locksmith), and see how that unexpected cost has impacted your total budget.
Come time for the end-of-month report, all your numbers are in one place.
With OfficeLuv, it’s easy to analyze the tail spend. By no longer overlooking that data, you’ll learn where you can cut some corners this year. You can rearrange budgets, proactively stay ahead of overspending, and, perhaps best of all, impress your finance team with the knowledge of where that “miscellaneous” spend is actually going.
Interested in learning how OfficeLuv can help your company get ahead of tail spend in 2020? Reach out today!