Expense management software is an efficient, simple, and easy tool to help companies manage their expenses. Old-style procedures of expense management are prone to unnecessary risks and issues. These issues can include the loss of documents and human error. Consequently, manually processing receipts and verifying documents by hand costs time, productivity, and resources. This is why in recent years more companies are gravitating towards software to control their expenses.
In today’s tech-savvy world efficiency is key. Therefore, using expense management can help eliminate the headaches for accountants and expense reporters. In this article we will discuss:
– What is expense management?
– How expense management software will help improve your business.
What is expense management software?
Typically, a manual process of expense management relies on an employee filling in a paper or spreadsheet attached along to an invoice. After receiving the expenses, a manager or controller manually registers and approves the request. Once the manager has approved the claim, they forward it on to the accounts department for processing.
Expense management software enables a business to process and reimburse employee-initiated expenses such as those incurred for travel and entertainment. Additionally, the software streamlines the process for both the employee and finance teams to manage the companies expenses. For example, an employee can use the software both to report and manage their business expenses. Similarly, finance teams with access to the information are able to efficiently and swiftly manage expense reports and reimbursements.
How expense management software will help improve your business
Expense reporting, approval, and reimbursement are tasks that can be time-consuming and expensive. Nowadays, businesses are in a trend of automating various tasks to alleviate the issues of manual tasks. On the whole, expense management is shifting into a core component of many companies’ business models to improve quality, efficiency, and productivity relating to expenses. Some of the benefits businesses can expect to achieve are:
1) Saving Time: Using online software to mediate your expense management will reduce the amount of laborious manual work and effort involved in uploading and processing receipts or invoices.
2) Integrations: Most online expense management software is able to integrate with accounting software and card programs. For instance, Mesh Payments allows users to connect invoices to their transactions over the virtual credit card platform. As a result of the integration between the software, companies are able to reduce costs and time spent on managing their expenses.
3) Real-Time Reliable Data: Online expense software often provides users with spending trends by using past data and expense analytics. Undoubtedly, this allows companies to make informed business decisions that can help regulate expenses.
4) Cut Processing Costs: studies have shown that companies that have transitioned to automated expense solutions from manual spreadsheets have been able to reduce processing costs of expenses by up to 50%.
5) Increased Compliance: Keeping up to date with company regulations can be confusing and difficult. It is estimated that up to 15% of approvals made by managers could be based on out-of-date policy. If a violation was to occur whilst using expense software it can be monitored, tracked, and stopped in real-time saving countless hours and limiting financial damage.
6) Personalization: Users can create personal fields that ensure the system is both up to date and has all the required information before submitting expenses. Consequently, the time needed to upload expenses is reduced, hence streamlining the process.
Organizations are automating their expense management processes for compliance, cost reduction, control, and employee productivity. In short, the state of the art tool is greatly reducing costs and improving efficiency. Likewise, it is decreasing the workload for employees across the board.
To conclude, Expense management software is changing the game for companies on how they track and manage their expenses. The user-friendly software is helping to smooth expense reporting by eliminating human error, risks, and costs.