Tracking expenses is an essential task for every company. Expense report software automates the entire expense management process, from submitting a claim to analyzing business expenses. Not only does this save time, but it reduces errors caused by manual data entry.
Employees can easily create and submit expense reports for work-related expenses like transportation, lodging, and meal costs. Management reviews and approves then sends the claim to account for processing and reimbursement.
The ability to automatically import expenses from personal and company credit cards and accounts streamlines the expense report process and ensures no expenditures are overlooked.
Additionally, organizations can customize approval workflows to help structure the approval process by setting limits or creating rules dictating spending overrides and adjustments.
Process Expense Report
Features such as automatic expense import and integration with popular accounting systems eliminate the need for manual data entry and minimize the chance of errors.
Direct deposit allows for quick and easy funds transfer, so companies can reimburse employees more efficiently and the compensation is available for immediate use.
The ability to track spending by expense category, unit or vendor provides insight into spending trends and identifies areas for cost savings. Organizations can improve their cash flow cycle and forecast for future expenditures.
Key Purchase Drivers
There are three main drivers that push a business to automate their expense management system: Cost, Compliance and Productivity.
Submitting and processing an expense report can be tedious and expensive. Automating this process saves time and cuts down on transaction costs.
For example, many systems offer mobile apps that allow employees to take a picture of receipts or scan and email the receipt, and the relevant data is extracted and auto populates on the report. Approved expenses, such as car mileage, flights or hotel lodging, are pre-coded for streamlined processing.
Even more, systems that include integration with accounting platforms and offer direct deposit help reduce the time and costs associated with claim approval and reimbursement.
Internal company policies, as well as external government and tax regulations, can cause non-compliance risks for an organization. Expense management systems help reduce risks by evaluating expense reports against internal and external regulations.
For example, managers and accounting can set up expense rules so they are automatically alerted when an expense is submitted that isn’t filed under an approved code. This can help catch innocent errors more quickly and alert management of situations involving possible fraud.
Time and money lost due to misplaced receipts, forgotten expense approvals and error-prone manual data entry and expense calculations, can put a significant drain on employee productivity and satisfaction. Expense management software can curb these issues and increase efficiency.
For example, employees can use their mobile device to take a picture of receipts, rather than having to keep track of various paper receipts while traveling. Managers can set up email reminders for employees about submitting reports and for themselves about approving reports. Automating these processes can boost productivity tremendously.
Benefits of Expense Management Software
These are the most distinctive benefits companies experience from using advanced expense management software:
Using ongoing savings for smart decisions
Centralizing information via expense management software helps managers report on all relevant performance indicators and base future decisions on those reports. The strategy is critical for developing expense policies, calculating project-related costs, identifying opportunities such as better supply deals, or surpassing the hazard of breaching compliance requirements.
Complying with internal/external regulations
The role of expense management programs in regards to regulations is pretty straightforward: they track legislative changes automatically, and they update system data in a manner which can reflect them. Meanwhile, all concerned parties are alerted on the change and on-boarded with how that change will affect performance figures.
Fair and consistent expense management
With expense management programs, rules are rules, and there are no exceptions to the rules. Solutions derive from fundamental policies, and employees know in advance what they’re entitled to ask for, and what they’re not. A system like this also enables automated approval and payoff, which motivates both requestors and confirmers to react fast.
Tax risk mitigration
Expense management systems are critical to the accuracy of your data because unlike your tiring manual calculations, they allow no mistake. The rationale behind it is that data is imported directly from corporate cards and service suppliers, which is also a great way to rationalize expenses. Indeed, expense management software is a ‘know – it – all’ one: it differs between legitimate and illegitimate expenses, it organizes them in categories, and it reports on every expense claim accordingly.
Implementing an expense management system is already an expense-efficient solution. The mere fact that you will be importing data automatically, and that the expense system will be linked to credit cards and payment channels, is already a reason not to doubt in the accuracy of the reports you will be producing. Consequently, the fact ought to be appreciated, knowing how expensive reporting per transaction can be, and how much time it can consume to enter it manually.
Flexible risk responses / fraud reduction
There is no such thing as a 100 percent guarantee for successful risk response. However, expense management tools managed to impose themselves as being the closest thing to expense controllers, able to recover savings fast on minimal implementation cost. By minimal implementation cost, we refer to the fact that you won’t need to install any additional infrastructure, but you will use what you already have, with all upgrades and maintenance modifications.