Expense Management Software – why do you need one
Do you fill out your expense reports using a spreadsheet, put your receipts into an envelope and then hand them over to your manager? Well if you are in this situation, it is time for your company to consider adopting an expense management tool.
When it comes to expense reporting, the top headaches businesses face are:
- lack of visibility,
- lack of control, and
- piles of papers that consume a lot of time to process.
Luckily, using the right tool, you can automate the entire expense management process, which in turn will alleviate the four pain points around business expenses.
Expense solutions are cost effective
According to Aberdeen Group research, the average cost of processing a single expense report is $17.87. This amount factors in the time it takes an employee to fill his report and also the time it takes finance people to review, approve and reimburse the claim. The research found companies that automate expenses experience a substantial 60% saving.
Gain visibility and control over expenses
The lack of visibility and control over spending is another big concern for businesses, and for sure a manual, paper-based workflow process just exacerbates the problem.
It’s easy to envision the finance team chasing spreadsheets and receipts for weeks if not months before an expense report shows up on their desk. The fact that a lot of reports are missing key information or they are submitted long after they occur makes it hard to grasp a real-time picture of the financial situation of the company.
An intelligent piece of expense management software should resolve this issue and enable the finance team to see at a glance which reports are late, which documents might be missing and also, when necessary, enable them to request clarifications from the employee who submitted the report.
Companies that fully adopt such systems have seen a 64% reduction in errors and were able to better enforce their expense policy. In a nutshell, with the right tools, the expense budget is controllable.
Expense app to increase productivity and happiness
Managing expenses is not only an issue for finance people, in fact, employees on the road can become frustrated when they have to spend hours filling their expense reports, scanning their receipts, and then waiting weeks to get reimbursed. All the hours wasted in the process are time not used reaching to clients, closing deals and ultimately improving the bottom line.
Here, mobile technology can come to the rescue. A business expense app can help employees record their expenses and submit their claims on the go. This will allow the company to capture the correct data at the source, reducing errors. After that, processing claims automatically will speed reimbursement and make everyone happy.
In sum, a piece of expense management software, coupled with mobile technology can:
- Reduce the cost of processing expenses
- Help you gain visibility and control over your company spend
- Increase the productivity of your people as they will spend less time gathering and tracking their expenses
- Increase the workforce satisfaction