Why Your LLC Needs an Expense Management Platform

Poor expense management is one of the most common challenges faced by LLC businesses in the construction and trades industries.  An LLC is established to protect the owner from business-related problems. If expenses are not meticulously organized, tracked, and documented, it can blur the lines between the owner and the company, making it harder for the LLC to protect you in the event of a problem.  Adding expense management software to your operations helps protect you and your business.

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Maintain the LLC Liability Shield

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One of the main reasons business owners establish an LLC is to protect themselves against liability. When a problem arises, a clear distinction between the owner and the business is absolutely crucial.  One of the first places courts go looking for this distinction is in the financial records. If the lines between personal and business expenses are not clearly drawn, it becomes easier to argue that the business is just an extension of the owner.

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An expense management software makes it easier to draw those distinct lines by:

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• Clearly documenting business expenses.
• Creating audit trails for every single purchase.
• Eliminating the need for business purchases on personal cards.

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Tax Filing Made Easy

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Filing taxes for an LLC is already an extensive process, and not having organized documents makes it worse. If you can’t prove expenses were for the business when you file, it could be applied to your personal taxes, which would be problematic for you and the business.  An expense management software improves the organization of expense documents.

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• Allocate expenses clearly.
• Digitally store and organize receipts.
• Tie specific documents to each transaction.

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Scale the Business & the LLC

An LLC is often established when the business is super small, and the systems put into place often break as the business grows.  This opens the owner up to liability as the LLC grows from a single-member LLC to a multi-member or even an elect S corporation.  Expense management software is designed to scale with the business.  So the system won’t break down as it supports more corporate credit cards, additional receipts, and more complex budgets.

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Let Outpave Support Your LLC

While the market is saturated with expense management platforms, not all of them are built for construction LLCs.  Outpave was specifically designed for LLC construction businesses. Our system supports your unique business needs.

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Outpave improves the distinction between owner and business by:

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• Supporting field-first spending.
• Maintaining corporate card controls.
• Eliminating the need for reimbursements.
• Providing Real-time spending reports.
• Providing real-time receipt capture.
• Connecting expenses directly to specific cards, crew members, or cost categories.

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Get Started Today

Ready to protect your LLC status? Book a demo and follow us online for updates on streamlining your expense management.

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