The management of company expenses is a key element of all businesses. Although possible, it’s not feasible, practical or efficient to rely on manual processes involving written notes and paper receipts. Software will speed up and reduce errors in tracking and monitoring employee spending. In this article from Relativity, the business technology specialists based in Uckfield in East Sussex, we look at the definition of expense management, the benefits associated with using software as well as how to decide on the system provider that would work for your business. You could find that with restrictions being eased, it could be the right time to really get to grips with employee expenses. You may find they will be travelling more, so your expense management system must be in place.
What is expense management?
It is the system that a businesses uses to process, pay and audit expenses generated by employees. They include any expenses incurred for corporate travel and entertainment. If your employees are on a business trip, costs can be incurred for accommodation, meals and transportation and these are normally paid by the employer. It also includes the policies and procedures that govern spending including what an employee can and cannot claim for.
Benefits of expense management software
- Faster and easier processes
- Reduced costs and time in processing expenses
- Employees are reimbursed more quickly – expenditures can be claimed and approved on-the-go and in real time
- Fewer data-entry errors
- Reduction in over payments
- Enhanced productivity – elimination of manual tasks
- Simplified reporting – insights into project and category expenses
- Improved visibility – dashboard using graphs and charts
- Increased compliance
Expense management software brings increased productivity and improved compliance
You will find that it is easy to track business spends with instant notification from employees in real time. At the tap of a button, all expenditure is recorded without the need for paper receipts. Powerful analytics will also detail spending behaviour. Automated expense management will have a positive effect through increased productivity, improved compliance, fraud prevention and your employees will like it too as it is easy to use.
How do you choose an expense management system?
The first step is to define what you actually need the system to do. This involves research and looking into expense management workflows. Compile a short list of possibilities and have in depth discussions with the providers regarding costs, customisation possibilities and ongoing costs. These will include any fees for upgrades of the system, license renewals as well as the customer support that is available. The expense management system should also be easy to use.
Rules, customisation, submitting expenses and reporting
Look into whether rules can be customised and if spending limits can be set. Also, does the software support mileage tracking and come with integrated payment cards? Delve into how employees submit their expenses and whether multi-currency reports are supported. Also will it integrate seamlessly with your accounting packages and your HR software?
How can Relativity help you with how you manage your expenses?
This all points to the fact that automating the expense management process is not a matter of choice but something that is a ‘must’. A cloud-based solution will allow you to manage your corporate expenditure, boosting productivity whilst streamlining and automating business spending and saving time and costs at the same time. In our next article, we will be looking at Zoho Expense in more detail and what the experts are saying about it and why it could be just the expense management software you are looking for.
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