The Importance of Expense Management Software
The reduction in overall travel over the last couple of years does not necessarily translate into a reduction in expenses. Working more remotely presented new challenges to employees and employers for many companies. Homeworking employees require specific equipment, and now the employers are determining which equipment qualifies as an expense. Additionally, employers face challenges in keeping employees motivated and productive, driving demand for automated efficient software that can be implemented easily.
Unfortunately, many companies have been forced to tighten their purse strings and are looking for ways to cut costs and increase ROI. Most employers should look into automating the expense process first, as it is a crucial part of any corporation’s operation that can be much more efficient when properly automated.
If you invest in the right expense management software, you can achieve a considerable ROI. You should expect a ROI, but there are many other benefits for both the employer and the employee. The benefits range from an improved employee experience to fewer delays and errors. The biggest beneficiaries are those who spend hours reviewing incomplete expense reports, searching for missing receipts whilst drowning in piles of paper.
How can Expense Management Software Benefit your Company?
By moving to cloud-based expense management software from what would be considered a traditional approach, employers can save up to 30% on travel and expense processing costs. Getting rid of paper, for instance, means getting rid of the printer and ink, and not to mention going paperless can help you reduce waste and make your workspace more organized. But of course, some documents absolutely need hard copies.
Utilizing expense management software doesn’t just offer advantages for employers, but also for employees and we can see that some of these are beneficial to both. Let’s take a look:
1. The Death of Spreadsheets
Spreadsheets, although familiar and convenient for many employees, create a lot of digital clutter. Before you know it, you’ve got spreadsheets everywhere. Without any degree of automation, spreadsheets are prone to human error – according to the Global Business Travel Association, 19% of all expense reports contain errors, and it takes 18 minutes on average to correct each one; I’ll come back to the time saving advantages later.
Expense management software eliminates the need for manual data entry and meticulous manual supervision. Automation is at the core of expense software and makes spreadsheets obsolete. Slowly but surely, manual expense management is becoming a thing of the past as companies strive for a more efficient system.
2. Speed up and Streamline your Expense Management Process
A workflow for your expense management process automates manual, inefficient processes. A purchase through a business card can automatically trigger an expense, which goes through the approval process and finally to accounting. Employees are given a completely hands-off approach to managing expenses. If you don’t have company cards there’s no need to worry. A smart receipt scanner can pull all the information directly into your expense software.
The digital trail of a processing expense will reduce the time spent on chasing expenses and responding to questions.
3. Greater Transparency
Through expense management software, you can create custom fields for employees to select when they submit expenses. With categories like mileage and entertainment, it’s easy to see what the company is spending money on. Using the built-in custom reports, you can analyse spending, look for ways to save money and stick to your budget. As you are reading this, you may be thinking it’s time to look into expense management software. By manually managing expenses, you’re missing out on valuable information that companies need to run efficiently.
Employees should be able to track the progress of their expenses at any time. As policies are automatically enforced by expense management software, they are less likely to be lost or forgotten. If an employee’s expense request is rejected, they will be given a clear explanation.
Choose the Right Expense Management Software
The Apple App Store was introduced in July 2008, when the first 500 apps were introduced, and at the time it was described as a little like a record store. The phrase “there’s an app for that” started appearing in Apple TV ads in 2009, so it is no surprise that in 2022 we will expect software to be accessible via smartphones and devices, as well as the desktop. In addition to this, here are some more things to look for when you’re seeking out the right expense management software:
Easy to use Interface
It is the usability of the software that differentiates standard expense management software from an end-to-end solution. A well designed interface not only looks better, but also makes it much easier and faster for the user to report, approve, and manage expenses.
Security
Data breaches are a result of human error, such as accidentally disclosing information or sending emails to the wrong people. By choosing cloud-based expense management software, you benefit from the best cyber security. When everything becomes digital, there is less room for lost paperwork.
Integration
Through a single expense management software, all departments involved in the expense process should be connected. This requires a flexible expense solution that can integrate with existing accounting software or any other accounting software that you may switch to in the future.
A connected process allows for much greater reporting, which helps you calculate your ROI and monitor spending habits from the time the end user reports an expense to the accounting department processing the reimbursement.
Transform your Expense Management Process
Expense management software is a time-saving and cost-cutting solution for your organization that helps you save time and money. An end-to-end solution helps you monitor expenses, helping you make decisions that will move your company forward, so no matter where you want to go, taking steps to improve your expense management will help you get there.