So, you’ve just gotten back from a pretty successful sales tour. You’ve closed some great trade deals that’ll move your company forward and can’t help but fantasize about the champagne pop waiting for you back in your office.
But when you get back, your fantasy quickly falls apart. Instead of a celebratory high five, it’s receipts to file and expense reports to fill. That’s a pretty familiar scenario when you’re using manual expense management tools to track and record business expenses.
To flip the familiar script once and for all, you may need to go the automated expense management software way. But first, what’s the point of an expense management tool?
What Does An Expense Management System Do?
An expense management tool is software made specifically to track, record, and report business expenses.
Now, the old-school way of doing this? It’s all about manual data entry and shuffling papers around. Not only is it a total time-suck, but it’s also like leaving the door wide open for mistakes or even some sneaky fraudulent claims.
Think about having a system that does most of the heavy lifting for you: AI that can scan your receipts, sort your expenses automatically and even give you a heads-up if something’s not quite right with company policy.
You can also expect to come across some real-time reporting, integration with accounting systems, etc.
Going for an automated expense management system that meets your business needs and budget can bring huge wins to your company. Here are a few goodies you can end up with as a result.
Streamlined Processes and Saved Time
The manual expense management process wastes a lot of time for you and your finance team. You end up buried in receipts and painstakingly filling out expense reports, especially when there’s a lot of logistics involved.
Going for an automated expense management system means eliminating the need for physical data entry. Simply snap a picture of your receipt with your phone and the system automatically captures the information.
Automated workflows then route your expense report for quick approval. That’s more time for your sales team to close deals, your marketing team to develop campaigns, and your customer service team to delight clients.
Enhanced Accuracy and Reduced Errors
Manual data entry is a recipe for mistakes. This is especially true when you’re juggling multiple receipts and currencies. All it takes is a misplaced decimal or a blurry receipt, and suddenly your expense report is flagged for errors.
Automated expense management takes the human element out of the equation. The system uses optical character recognition (OCR) technology to read your receipts electronically. This eliminates typos and miscalculations. It can even categorize your expenses based on company policies.
Improved Visibility and Control
Automated expense management sheds light on spending patterns. This gives you a clear view of where your money goes. You get to see a real-time breakdown of expenses by department, category, or even individual employee.
Thanks to this feature, you might discover that a particular department is consistently exceeding its travel budget. With this knowledge, you can investigate the reasons behind the high costs and develop strategies to optimize travel spending.
Automated systems can also generate reports that compare your spending to historical data or industry benchmarks. This helps you identify trends and make informed decisions about future budgets.
Simplified Compliance
Keeping up with expense reporting regulations can be quite difficult and take a lot of your time. However, automated expense management can help streamline compliance and keep your business on the straight and narrow.
The system can be programmed to automatically flag expenses that violate company policies. For example, if an employee submits a meal receipt exceeding the daily limit, the system will notify them for correction before submission. This ensures that all expenses are compliant.
Automated systems can also store digital copies of receipts for easy access. This eliminates the need for physical paperwork and simplifies the audit process for your finance team.
Faster Reimbursements
If you or your employees travel frequently, you know first-hand that delayed expense reimbursements can cause significant financial strain. Automated expense management solves this problem by accelerating the reimbursement process.
With automation, expense reports are submitted electronically and routed for quick approvals. This eliminates the delays associated with manual processing. Once approved, reimbursements can be issued electronically. This puts money back in your employees’ pockets faster.
In Closing
Automated expense management can change the game for businesses of all sizes. From streamlined processes to happier employees, the benefits are undeniable. If you want to put one in place for your business, it’ll do you good to research the market. Shop around and settle for one that’s the best fit for your business needs and budget.
