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 Divvy phone app 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 e-commerce activities including Amazon.

 

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 Set Up 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 categorized 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 for receiving whole P&L picture.

 

 

 

 

How to export Divvy transactions to Quicbooks and Zoho Books

Go to “Transactions” in Divvy and “export transactions as…”

 

Quickbooks Import

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.

 

Quickbooks Desktop Import

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.

 

 

 

Zoho Books Import

Select CSV instead of QBO and follow the Zoho Books expenses import guide.   You can save mappings for future imports.

Divvy Budgets

Budgets can be anything you want.  Just to make sure you have allotted wiggle room for all the transactions that may occur on the budget and therefore that credit card.   Do not forget to increase the credit card recurring spend limit while increasing the budget.  See the illustration below.  Again, increase the monthly card limit when you are increasing the budget associated with the card.  While it may be recurring, it can be onetime too. It may be a one to one relationship, expense categories to related to budgets:

• Insurance
• Office Expense – IT SuppliesMaybe 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

Providing a user a physical credit card and adding them to a budget

1. Navigate to the budgets tab on the left-hand side (pie graph icon)
2. Select the budget you would like them to be added to
3. Choose “View/edit full roster” on the right-hand side
4. Click edit next to owners or members (whichever you would like this user to be)
5. Select their name.
6. Then click “Save changes” at the bottom.
7. Don’t forget to assign funds to them under the “spend limits” tab and you’re good to go!

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

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 what Budget was overspent

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

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.  Feel free to mention I referred you if you so please.