What Is Expense Management Software And How Can It Benefit Your Business?

Manual expense reporting is somewhere between annoying and maddening. From your finance team to your employees to managers/approvers, the manual expense reports process is a major pain for everyone. When it comes to expense reports and reimbursement requests, it’s easy to see why employees want to be kept in the loop.

Expense management is necessary to process all the expenses generated by such business trips and entertainment. In order to have a check and balance of these expenses, an effective and robust expense management process is needed. We live in a globalized world and the need for business travel is on the rise. When an employee has to travel for business needs on the behalf of the company, the business is obliged to pay those travel expenses, such as lodging, transportation, meals, etc. As a business owner, it can be all too easy to underestimate the importance of tracking expenses.

Is it compatible with other platforms?

Better reporting facilitates financial planning and analysis as companies evaluate current costs and find ways to increase efficiency and reduce costs. A cloud based expense management software is accurate, intuitive, and straightforward. So now, all the users need to do is plug in the appropriate information and numbers. When you’re ready to start digitizing your expense management system, Everlance can help. Our all-in-one mileage and expense tracking software can save your organization time and money, while offering a user-friendly platform and always-there service, whenever you need it. Good expense management software also allows you to view new expenses in real-time, typically through an analytics dashboard.

As most businesses have already moved their other operations online, digitizing expense management as well only makes sense, especially if it can help your company stay on budget. As reported by the Federal Trade Commission, How To Choose The Best Expense Management Software there were 4.8 million fraud reports and identity theft cases submitted to them in 2020. It’s normal for busy financial teams and supervisors to miss fake entries, even from trustworthy workers or contractors.

What are the traditional methods of expense management?

Expense management software consists of cost tracking, accounting, project management, and enterprise resource planning software to provide the necessary support. This simplifies the tracking process of the employees and the approval process of managers and improves the cash flow of the company. Automated Expense Reporting Software assists enterprises to build their base by simplifying T&E operations, enhancing the process, and boosting productivity. Reimbursement is expedited, money is credited back to employees’ bank accounts, and eliminates the delays in payments.

• Or, an employee may be attempting to request reimbursement for a new addition to the policy, like an ergonomic keyboard, but is being denied.
• First, ensure that the software you choose falls within the available budget set aside for this particular expense.
• Frustration is a great sign that it’s time to invest in expense management software.
• The amount to be reimbursed may be automatically reported to payroll, too.
• Travel and expense management solutions help you streamline corporate travel from start to finish.

From submitting expense requests to final approval from the manager, all can be done through a one-click solution. Before automating your expense reports, you must conduct a self-review to understand the processes and workflow included in the traditional expense https://globalcloudteam.com/ management processes. In short, the right expense management solutions will make your expense reporting process easier, keep your records centralized, and drive expenditures down. Employees file expense reports and then spend weeks waiting for an update.

Automated expense management software dramatically reduces the likelihood of errors. Alongside our software, we offer other benefits, like corporate visa cards that can be assigned and controlled in one single place. You can issue physical and virtual company cards in a matter of seconds. We’ve removed the burden of individual card control with clever account automation, allowing company card management in bulk. You can set rules and apply them to whole departments with just a click. Cards are connected to your Payhawk wallet and they can be customised according to the company’s spend policy, creating a fast and efficient way for employees to manage expenses on the road.

A seamless reimbursement process

An expense management system enables your finance teams to monitor and control when and how funds leave the organisation. The process should cover procedures for filing, verifying, approving, and paying expense reimbursements. However, the benefits of automating expense management far outweigh its costs for your business. Your company can improve its productivity and better manage the second largest controllable cost—employee business expenses. Traditional expense management has typically been done by manually entering expenses codes and bank information into a spreadsheet system.

Expense management doesn’t generate revenue, but it’s something every business must do to stay on track. Fortunately, all these steps can be automated using expense management software. Expense management tools help businesses streamline an otherwise time-consuming process, benefiting employees and your bottom line. Business travel is a balancing act and often you’ll find that the workload your finance manager is faced with is overwhelming. With 96% of employees believing empathy is important for improving employee retention, being attentive to your workforce is key. When choosing an automated solution, look for a tool that has flexibility.

Your corporate travel is inefficient and confusing

Spend analysis is a major part of expense management for small business. A small business needs to keep track of its cash flow, cost leakages, etc., to make better use of its revenue. However, you cannot get the insights to optimize the expense process by handling expenses manually. Expense management software is an efficient platform for managing expenses for small business.

It also allows team members to submit expense reports and supporting documents, such as images or scans of receipts, straight from their computer, tablet or cellphone. This way, they don’t have to fill out paper forms or manually keep track of receipts. An expense management tool can even help identify areas where expense rules need to be clarified or enforced more effectively.

Luckily, the benefits it provides often make it well worth the initial investment, regardless of whether you choose stand-alone software or an all-in-one HRIS. Watch this video to see the full range of functionality of CoreIntegrator travel and expense management software. So make travel and expense management software part of your overall AP digital transformation. By implementing software that automates expense management, businesses of all types and sizes can streamline operations, cut costs, and reduce tasks that waste time and cause frustration. Each system might offer unique capabilities that make it appealing to a certain business.

If your business is expecting major changes, be mindful of how they may impact your software needs. For instance, if you’re expecting new management, extra funding, more locations, or an acquisition, your expense management processes could change. Employees will be more likely to upload their receipts in a timely manner and managers will have an easier time reviewing them. No one has time to do everything by computer these days, and an app makes a big difference to user experience. Expense policy dictates the protocols to be followed while filing and approving expenses.

Let’s see why you should choose expense management software for small business. So unless your company is an accountant, or you like the IRS tax plate alphabet soup, an automated expense reporting system can help you avoid hot water. If your business has employees in other countries, look out for expense management solutions which offer multi-currency support. These include FreshBooks, Rydoo, QuickBooks (depending on your plan⁸) and Certify Expense¹.

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Find hundreds of resources on all things business travel, from tips on traveling more sustainably, to advice on setting up a business travel policy, and managing your expenses. With Emburse Certify, you can deliver expense reports, organize accounts payable, and quickly manage invoices all on one platform. You want a solution that excels when it comes to automating travel reports and workflow rules. It helps speed up your corporate travel process from start to finish. Look for an expense software that has a comprehensive approach to onboarding, or—better yet—a solution that doesn’t require in-depth knowledge to manage business travel.

If your business is international, you’ll need expense management software that supports multi-currency transactions. Employees may use company credit cards that integrate into the software system. This type of software interface is generally easy to use, with training modules and customer service often included. Through the benefits of Payhawk, expense management can make closing the month feel easy for your employees and for you.

Key Benefits of Expense Management Software

Meanwhile, employees can see the status of their requests at any time and receive notifications of updates. Automation keeps the process moving and makes sure nothing gets lost along the way. ExpenseWire is a wholly-owned subsidiary of Paychex, a trusted name in the HR business that serves over half a million small and medium-sized businesses nationwide. Our expense management software captures expense data at the time of purchase, then flows that information into your reimbursement process and accounting systems.

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It provides businesses and users with visibility into areas that need. A cloud-based Expense Management Software is not only accessible but also intelligent. It provides businesses and users with visibility into areas that need improvement, such as managing to spend more effectively and improving business processes.

Once the employee has submitted the expense request with authentic memos and receipts, the manager has to take out time to review those expense requests in detail. The employees have to fill each detail of the expenses in a spreadsheet along with memos and receipts. After that, the employee must submit the reimbursement request to the manager in order to get the payment approved. In this blog post, we will discuss some tips for creating an expense policy that works for your business. When you’ve determined your finalists, schedule a demo with each provider.

Expense management software improves accuracy, which also helps expedite employee reimbursements. Employees can add expenses to a report in a variety of ways and when they press “submit”, the report is immediately sent to the relevant person for approval. The amount to be reimbursed may be automatically reported to payroll, too. Identifying high-spending individuals, chronic policy violators and the expense trends of every employee over time.

You can streamline all your company spending on a unified platform and get spending reports to identify cost-cutting opportunities. • Compliance with the instructions of the internal revenue service and various tax agencies is a key feature of the software. Auditing the company using the software can help to track expenses worthy of business discounts and provide easily accessible documentation. When managers have consistent and transparent access to data, they’re able to negotiate more cost-effective travel arrangements. A cloud based Expense Management Software is not only accessible but also intelligent.