## Expense Reporting and Analysis

Once you've added your expenses, Alpha Insights provides comprehensive reporting and analysis tools to understand your spending patterns, track costs over time, and optimize your business operations.

### Where to Find Expense Reports

Expense data appears throughout Alpha Insights:

- Expense Manager Dashboard: Quick overview metrics and recent expenses
- Report Builder: Pre-built and custom expense reports
- Profit & Loss Statements: Expenses in context of overall profitability
- Manage All Expenses: Filterable, exportable expense data

### Expense Manager Dashboard Metrics

#### Key Performance Indicators

The dashboard displays four critical metrics with period-over-period comparison:

1. Paid Expenses

- What it shows: Total paid expenses for selected date range
- Comparison: vs. previous period of same length
- Interpretation: Shows spending trends - increasing/decreasing costs
- Color Coding: Red for increases, green for decreases (expenses are "inverse" - lower is better)

2. Unpaid Expenses (All Time)

- What it shows: Total of all unpaid expenses across all dates
- Comparison: No period comparison (always shows all-time total)
- Interpretation: Outstanding obligations - bills to pay
- Use Case: Cash flow planning and payables management

3. Net Revenue

- What it shows: Total order revenue (before expenses) for date range
- Comparison: vs. previous period
- Interpretation: Business growth context for expense analysis
- Color Coding: Green for increases, red for decreases

4. Net Profit

- What it shows: Store profit after ALL expenses
- Calculation: (Order Profit) - (Total Expenses)
- Comparison: vs. previous period
- Interpretation: True profitability including all costs
- Color Coding: Green for increases, red for decreases

#### Date Range Selector

Change the reporting period using the date range dropdown:

- Last 7 days
- Last 30 days (default)
- Last 60 days
- Last 90 days
- Last 6 months (180 days)
- Last 1 year (365 days)

Note: The comparison period automatically adjusts - if viewing last 30 days, comparison is previous 30 days.

### Recent Expenses Analysis

#### Paid vs Unpaid Toggle

Switch between viewing:

- Paid Expenses: Filtered by selected date range
- Unpaid Expenses: All unpaid expenses regardless of date (important for cash flow)

#### Expense List Details

Each expense shows:

- Title: Expense name
- Amount: In original currency and converted to store currency
- Date: Date paid (or date due for unpaid)
- Category: Expense category if assigned
- Supplier: Supplier if assigned
- Reference: Invoice/reference number if present
- Recurring Indicator: Badge showing if expense is recurring
- Actions: Edit and Delete buttons

### Recurring Expenses Analysis

#### Recurring Expense Dashboard

The dashboard shows all active recurring expenses with rich analytics:

Displayed Information:

- Expense Name: Title of recurring expense
- Amount per Occurrence: Cost each time it recurs
- Frequency: Daily, Weekly, Fortnightly, Monthly, Quarterly, or Yearly
- Date Range: Start date and end date (if set)
- Total Paid to Date: Cumulative amount in store currency
- Occurrence Count: Number of times it has occurred
- Status: Active, Ended (past end date), or Scheduled (future start)

Interpreting Recurring Expense Data:

- High occurrence count = long-running expense, consider renegotiating
- Large total paid = significant cost center, priority for optimization
- Compare frequency patterns to identify consolidation opportunities

### Manage All Expenses Reporting

#### Advanced Filtering

The Manage All Expenses page provides powerful filtering for detailed analysis:

Filter Options:

- Date Range: Custom from/to dates for precise period analysis
- Category: Isolate expenses by category
- Supplier: Analyze costs by vendor
- Paid Status: Separate paid from unpaid
- Recurring Type: Compare recurring vs one-time costs
- Attachment Status: Find expenses missing documentation
- Search: Text search across expense names and references

Example Analysis Scenarios:

Scenario 1: Software Cost Analysis

1. Filter Category = "Software & Tools"
2. Filter Recurring = "Recurring"
3. Review list of all software subscriptions
4. Identify unused or redundant services
5. Export to CSV for deeper analysis

Scenario 2: Supplier Spending Review

1. Filter Supplier = Specific supplier
2. Set date range = Last 12 months
3. Review all costs from that supplier
4. Identify spending patterns
5. Negotiate better rates based on volume

Scenario 3: Missing Documentation Audit

1. Filter Attachment = "Without Attachments"
2. Filter Amount > $100 (using sort)
3. Identify expenses needing documentation
4. Add receipts/invoices to each
5. Improve audit readiness

#### Export Capabilities

Export Options:

- Export All: CSV of all expenses in database
- Export Found: CSV of currently filtered/searched results

CSV Export Includes:

- Expense title
- Amount (original and converted)
- Currency codes
- Date paid
- Category
- Supplier
- Reference number
- Paid/unpaid status
- Recurring status and frequency

Use Cases for Export:

- Accounting Integration: Import into QuickBooks, Xero, etc.
- Tax Preparation: Provide to accountant
- Deep Analysis: Use Excel pivot tables for custom analysis
- Backup: Regular data backups
- Reporting: Create custom reports in other tools

### Report Builder Expense Reports

#### Accessing the Report Builder

1. Go to Alpha Insights → Reports
2. Select or create a report that includes expense data
3. Configure date range and filters
4. View expense widgets and data

#### Pre-Built Expense Reports

1. Expense Overview Report

- Purpose: High-level expense analysis
- Includes:
  - Total expenses for period
  - Expense by category breakdown
  - Top expenses list
  - Expense trend over time
  - Expense as % of revenue
- Best for: Monthly expense reviews

2. Profit & Loss Statement

- Purpose: Complete financial picture
- Includes:
  - Revenue
  - Cost of Goods Sold
  - Gross Profit
  - Operating Expenses (by category)
  - Net Profit
  - All margins and percentages
- Best for: Financial reporting, investor updates

3. Category Performance Report

- Purpose: Deep dive into expense categories
- Includes:
  - Spend by category over time
  - Category as % of total expenses
  - Month-over-month changes
  - Individual expenses per category
  - Parent/child category breakdowns
- Best for: Cost optimization, budget planning

4. Supplier Analysis Report

- Purpose: Vendor spending analysis
- Includes:
  - Total spend per supplier
  - Supplier ranking by spend
  - Expense frequency per supplier
  - Supplier spend trends
- Best for: Vendor negotiations, consolidation opportunities

#### Custom Expense Reports

Creating Custom Reports:

1. Go to Reports → Create New Report
2. Name your report
3. Add widgets that use expense data:
   - Metric Cards: Total expenses, specific category totals
   - Pie Charts: Expense breakdown by category/supplier
   - Line Charts: Expense trends over time
   - Bar Charts: Category comparisons
   - Data Tables: Detailed expense listings
   - P&L Widgets: Profit & Loss statements
4. Configure filters:
   - Date range
   - Specific categories
   - Specific suppliers
   - Paid/unpaid status
5. Save and share

Example Custom Reports:

Monthly Operating Expense Summary

- Metric Card: Total Operating Expenses
- Pie Chart: Operating expenses by sub-category
- Line Chart: Operating expense trend (12 months)
- Data Table: Top 20 operating expenses

Marketing ROI Report

- Metric Card: Total Marketing Expenses
- Metric Card: Revenue from marketing channels
- Calculated Metric: Marketing ROI %
- Line Chart: Marketing spend vs revenue over time

Quarterly Business Review

- P&L Statement Widget
- Expense by Category Pie Chart
- Revenue vs Expenses Line Chart
- Key metrics with quarter-over-quarter comparison

### Key Expense Metrics Explained

#### Total Expenses

Formula: Sum of all paid expenses in date range

Use: Overall spending level

Target: Varies by business, but should grow slower than revenue

#### Expense Ratio

Formula: (Total Expenses / Total Revenue) × 100

Use: What percentage of revenue goes to expenses

Benchmarks:

- Under 30%: Very lean operation
- 30-40%: Healthy for most eCommerce
- 40-50%: Getting high - review for cuts
- Over 50%: Unsustainable - immediate action needed

#### Operating Profit Margin

Formula: (Net Profit / Revenue) × 100

Use: True profitability after all operating costs

Benchmarks:

- 15-25%: Healthy eCommerce business
- 10-15%: Acceptable but room for improvement
- Under 10%: Concerning - optimize or grow revenue

#### Expense Per Order

Formula: Total Expenses / Number of Orders

Use: Average fixed cost burden per transaction

Use Case: Pricing strategy - ensure product margins cover this

#### Expense Growth Rate

Formula: ((Current Period - Previous Period) / Previous Period) × 100

Use: How fast expenses are increasing

Target: Should be less than revenue growth rate

#### Category Concentration

Formula: (Category Total / Total Expenses) × 100

Use: Identify which expense categories dominate

Use Case: Focus optimization efforts on largest categories

### Time-Based Expense Analysis

#### Month-over-Month Comparison

What it shows: How expenses changed from last month to this month

Use: Identify sudden changes or trends

Example:

    October 2024:  $8,500
    September 2024: $8,200
    Change: +$300 (+3.7%)

    Analysis: Slight increase, review for one-time costs or
    new recurring expenses added.

#### Year-over-Year Comparison

What it shows: How expenses compare to same period last year

Use: Account for seasonality, measure long-term trends

Example:

    Q4 2024: $27,000
    Q4 2023: $22,000
    Change: +$5,000 (+22.7%)

    Analysis: Significant increase. If revenue grew by similar
    percentage, this is proportional growth. If revenue grew
    less, expenses are outpacing growth.

#### Trending Analysis

What to look for:

- Upward Trends: Increasing costs - identify cause
- Downward Trends: Cost reductions - measure impact on operations
- Sudden Spikes: One-time expenses or data errors
- Seasonal Patterns: Regular fluctuations (e.g., holiday staffing)
- Flat Lines: Stable costs - good for forecasting

### Category and Supplier Analysis

#### Category Breakdown

Pie Chart Analysis:

- Largest slices = biggest cost centers = optimization priorities
- Many small slices = fragmented spending, potential for consolidation
- Slice growth over time = category becoming more expensive

Common Category Patterns:

- Personnel = 40-50%: Normal for labor-intensive businesses
- Rent = 15-25%: Common for brick-and-mortar + warehouse
- Marketing = 20-35%: Normal for growth-focused companies
- Software = 3-8%: Typical for digital businesses

#### Supplier Concentration

What to look for:

- High Concentration (80% from 1-2 suppliers): Risk of price increases, dependency
- Low Concentration (spread across many): Less negotiating power, more admin
- Ideal: 3-5 major suppliers with relationships, others for specialization

#### Supplier Performance Metrics

- Total Spend: Ranking suppliers by volume
- Expense Frequency: How often you pay each supplier
- Average Transaction: Total spend / number of expenses
- Trend: Increasing or decreasing spend over time

### Actionable Insights from Reports

#### Cost-Cutting Opportunities

Where to look:

1. Largest Categories: Small % reduction = big savings
2. Recurring Expenses: Renegotiate or eliminate
3. Unused Services: Cancel subscriptions not being used
4. Duplicate Services: Multiple tools doing same thing
5. Supplier Consolidation: Negotiate volume discounts

Example Analysis:

    Software & Tools: $2,400/month (15 subscriptions)
    Analysis:
    - 3 subscriptions unused (last 60 days)
    - 2 subscriptions have overlapping features
    - No volume discounts negotiated

    Action Plan:
    - Cancel 3 unused: -$450/month
    - Consolidate 2 tools: -$180/month
    - Negotiate annual plans: -$120/month
    Total Savings: $750/month ($9,000/year)

#### Expense Optimization

Optimization Strategies:

- Renegotiate: Use spending data to negotiate better rates
- Consolidate: Combine multiple expenses with one vendor
- Timing: Shift to annual payments for discounts
- Alternatives: Compare to competitors for better pricing
- Automate: Reduce labor costs through automation

#### Budget Planning

Using expense data for budgeting:

1. Historical Average: Calculate average monthly expense per category
2. Growth Adjustment: Add expected growth % to baseline
3. New Initiatives: Add planned new expenses
4. Seasonality: Adjust for known seasonal patterns
5. Buffer: Add 5-10% contingency

Example Budget:

    Historical Monthly Avg: $8,200
    Expected Revenue Growth: +20%
    Expected Expense Growth: +10% = $9,020
    New Initiative (hire): +$3,500
    Subtotal: $12,520
    Contingency (5%): +$626
    Monthly Budget: $13,146

### Scheduled Reports and Alerts

#### Email Reports

Alpha Insights can send automated expense reports:

- Daily: Daily expense report
- Weekly: Weekly expense summary
- Monthly: Comprehensive monthly expense report

Configure in: Alpha Insights → Settings → Email Reports

#### Report Recipients

Send reports to:

- Business owners
- Financial managers
- Accountants
- Department heads

### Best Practices for Expense Analysis

#### Regular Review Schedule

- Daily: Quick check of new expenses
- Weekly: Review unpaid expenses, verify data entry
- Monthly: Complete expense analysis, budget vs actual
- Quarterly: Deep dive, optimization opportunities
- Annually: Full expense audit, strategic planning

#### Compare to Industry Benchmarks

Research typical expense ratios for your industry and compare:

- Are you over/under spending in specific categories?
- Where can you gain competitive advantage through efficiency?
- What areas should you invest more in?

#### Connect to Business Strategy

Don't cut expenses blindly - align with strategy:

- Growth Phase: Higher marketing and personnel expenses acceptable
- Profitability Focus: Aggressive cost optimization
- Market Defense: Maintain service levels despite cost pressures

#### Document Decisions

Use the Reference field to note:

- Why expense was incurred
- Expected ROI
- Approval chain
- Review dates

### Advanced Analysis Techniques

#### Expense Cohort Analysis

Group expenses by when they started:

- Track how 2024 initiatives impact ongoing costs
- Measure ROI of expense decisions over time
- Identify which vintage of expenses provide best value

#### Variance Analysis

Compare actual vs budgeted expenses:

- Calculate variance % for each category
- Investigate variances > 10%
- Adjust future forecasts based on patterns

#### Ratio Analysis

Key ratios to track:

- Expense/Revenue Ratio: Overall cost efficiency
- Category/Revenue Ratios: Specific cost efficiencies
- Expense/Profit Ratio: How much expense per profit dollar
- Operating Leverage: How fixed vs variable are expenses

### Exporting for External Analysis

#### Export to Excel

For advanced analysis in Excel:

1. Export expenses to CSV
2. Import into Excel
3. Create pivot tables for multi-dimensional analysis
4. Build custom charts and dashboards
5. Perform statistical analysis

#### Export to Accounting Software

For integration with accounting systems:

1. Export in required format
2. Map Alpha Insights categories to accounting categories
3. Import into QuickBooks, Xero, etc.
4. Reconcile accounts

#### Export for Tax Preparation

For tax time:

1. Filter to tax year date range
2. Export all expenses
3. Group by tax-deductible categories
4. Provide to accountant with documentation

### Troubleshooting Report Issues

#### Numbers Don't Match Expectations

- Check date range - are you looking at the right period?
- Verify paid/unpaid filter - unpaid expenses not included in most reports
- Check currency - are conversions correct?
- Review for duplicate entries

#### Recurring Expenses Show Wrong Total

- Verify start date is correct
- Check if end date is set (might have ended earlier than expected)
- Confirm frequency is correct
- Remember: only counts up to current date

#### Category Breakdown Doesn't Add Up

- Uncategorized expenses shown separately
- Hierarchical categories: child categories roll up to parents
- Check if viewing parent-only or all categories

#### Export Missing Expenses

- Export respects current filters - clear all filters for complete export
- Check date range - export only includes specified dates
- Paid/unpaid filter may be excluding some expenses