Managing any business comes with a lot of moving parts. One of the most challenging is actively and accurately tracking profit and expenses. If you’re still using a messy stack of receipts or a disconnected spreadsheet to track what you spend, you’re likely losing money without even realizing it. Let’s dive into why tracking expenses directly inside a PSA tool is a total game-changer.
What Exactly is Expense Tracking in a PSA Tool?
Expense tracking is about recording, managing, approving, and billing business expenses related to projects, clients, or employees.
Typical tracked expenses include things like:
- Travel costs (flights, hotels, mileage)
- Contractor or freelancer costs
- Hardware or equipment purchases
- Shipping or miscellaneous project costs
The key difference from general accounting software or a spreadsheet is that PSA expense tracking links directly to:
- Specific projects
- Clients
- Tasks or tickets
- Billable work
- Employee time and utilization
Why Use a PSA Tool Instead of Spreadsheets?
Spreadsheets will usually work early on, but as operations grow, they become disconnected, manual, and difficult to scale.
- No automation – Spreadsheets rely on manually copying data, updating statuses or sending reminders. With a PSA tool you can automate notifications, approval flows, and invoice creation.
- Disconnected from your work – Instead of tracking projects in one spreadsheet, support tickets in another, and invoices somewhere else, a PSA brings everything into one system.
- No real-time visibility – Spreadsheets quickly become outdated because updates depend on people manually editing files.
- Disconnect from profitability – A PSA helps track billable hours, costs, and revenue forecasts. Because you work in the same tool, you can manage accurately as work happens.
How to Get Started: Setting Up Expense Tracking
Create Your Categories
Start by organizing the types of expenses your team commonly submits. Clear categories make reporting, approvals, and billing much easier later.
Define Procedures
Establish a simple, standardized process for how expenses should be submitted and reviewed.
Decide:
- Who can submit expenses
- What information is required
- When receipts must be attached
- Which managers approve expenses
- Which expenses are billable vs non-billable
Automate Your Approval Workflow
Use automation to eliminate manual follow-ups and speed up approvals. Regularly review submitted expenses to ensure accuracy and profitability.
A good workflow typically includes:
- Automatically notifying the correct approver
- Escalation rules for overdue approvals
Review and Bill
Once approved, billable expenses can be added directly to client invoices, helping ensure no reimbursable costs are missed. Be sure the correct expenses are marked for the client and set as billable. Then, add billable expenses to your Time and Materials invoices.
Why OneDesk is the Perfect Choice for Expenses
OneDesk was built to handle both Support and Tasks, allowing it to track expenses in multiple areas of your business.
1. Expenses for Support and Projects – Whether you are fixing a bug for a client or building a new website, you can log expenses against either type of work. This ensures that no “hidden” costs fall through the cracks.
2. Integrated Invoicing – Because your time tracking and your expenses are in the same system, you can generate an invoice that includes both. You can bill your client for the 10 hours you worked plus the $500 in materials you bought.
3. Easily Categorize and Track Costs – OneDesk lets you categorize your expenses (like “Travel,” “Hardware,” or “Consulting”). This makes it incredibly easy to see where your money is going at the end of the month. You’ll know exactly which projects are profitable and which ones are eating up your budget.
Expense tracking doesn’t have to be a headache. By integrating your expenses with your tasks and tickets, you’ll save time, reduce errors, and make sure you get paid for every penny you spend.
Ready to simplify your workflow? Try tracking your next project expenses in OneDesk and see the difference for yourself!