If you want to get the best deal when buying expense software, you should first check out reviews of the best expense management software. Here you can compare different tools and learn about the different features that you can use for your business. You can also find out what other people have to say about a particular software.
The need for expense management software for small businesses and even for big ones is increasing. This is because of the countless advantages that one can get from using the tool. The exhausting task of processing, paying, and checking employee-initiated overheads is now made simple and efficient. Hence, businesses are eager to integrate the software into their current systems.
A lot of common issues encountered with manual expense management are resolved with the various features provided by the software. Now, you don’t have to be overwhelmed with all the work associated with expense management.
Quick Overview of Expense Management Software
The finance department is just one unit but it has many responsibilities that are essential for the business to function well. It manages anything that has to do with money and its accountability includes overseeing expenses by employees and other people that are part of the organization. Checking and verifying the validity of every expense is necessary to ensure the return of investment in the company.
Expenses that are commonly reimbursed by companies are telecom, utility, and travel expenses. When expense management software is utilized, your company can proficiently manage reimbursement request. The software eases the entry of expense reports because it can automatically detect errors like incorrect or missing information. When using the software, you can easily monitor and check expenses reports.
The traditional way of doing expense management is through the manual system and this is appropriate for small business. It uses a spreadsheet and is ideal for those who have very minimal company expenses. As your business grows and as the number of employees increases, using the manual system in tracking expenses can be overwhelming and this is why expense management software is preferred by large companies.
Different Processes Involved in Expense Management
There are several processes that take place in expense management before successful reimbursement. When problems are encountered in any of the stages, there is a possibility of delayed refund for employees.
- Expense data recording
Before employees can receive reimbursement for work-related expenses, they first need to submit an expense report. Personal details are needed as well as the details of the expenses incurred. It is important that employees ensure correct data entered to prevent problems later on.
- Approval of reports submitted
The report submitted by the employee will then go through the manager or supervisor for approval. If there are errors, the form will be sent back to the employee for the necessary correction. If the manager approved the report, it will then be given to the auditor.
- Thorough checking of the report
Even if the report is already approved, it still needs to be checked by an auditor. In this stage, the receipts are verified to ensure that the employee followed the expense management policy of the company. Upon approval, the report will then be endorsed for reimbursement.
- Actual reimbursement of expenses
After the receipt of the approved form, the system will then generate the accounts payable based on what is entered in the form. Then, the employee will be notified that the reimbursement is already available.
Advantages of Using Automated System for Expense Management
The continuous increase in the number of businesses using expense management software is already a proof of how beneficial the software is. If you are still not convinced, read through the detailed advantages of using the automated system.
- Saves time and money
According to a travel and expense benchmark report conducted by PayStream, companies usually spend about $20.18 to manually process expense reports. On the other hand, using an automated system like expense management platform, the estimated cost of expense processing is just $7.60. In comparison, when the automated system is used, there is 62% decrease in operational cost than when the process is done manually.
Using the expenses management software will allow easy and efficient data collection for managers. These data can be used to your advantage. For instance, if many of your staff members have business trips, you can see in the system the hotels and airlines they choose during this travel. When a certain hotel or airline is constantly on the list, you’ll have the leverage to ask for discounts from these companies.
Managing expense reports can take all of your time. You can spend the whole day working on expense document and still end up with piles of paperwork the next day. However, if you deeply understood what an expense management software is, you will not have second thoughts of purchasing it.
With the help of the software you can quickly finish reporting and you will have more time to focus on more important tasks.
- Policy compliance
Expense management policies are needed to safeguard both the employees and the owners. As the company grows, the policy needs to be revised as necessary. This will ensure that the needs of both parties are met.
Despite the possibility of policy revisions, the expense management software can still function as directed because of its customizable features and pre-populated fields. This way, when an employee enters a wrong data, the system will prompt an error to inform the staff. This allows early detection so problems can be addressed right away.
- Uniformed reporting
When your expense reporting does not follow a format, chances are you’ll have different report organization. This is not acceptable when dealing with expense management. This will only result to confusion for both you and your employees. You can avoid experiencing this problem when you use expense management tool.
By introducing the automated process of reporting, you can create a standard form which you can also easily change later on.
Expense Management Software Features to Look Out for
- Basic submission of reports
Completing a report manually is oftentimes a challenging task for most employees. A common problem that people encounter is damaged, faded or lost receipts. Because most of the receipts are printed on thermal paper, damaged is unavoidable. Regardless of how careful they are with the receipt, if it stays too long folded in their wallets, it will still fade as expected. By the time they are ready to file the expense report, important details are no longer legible.
Having expense management software will allow you to submit the receipts even when you are still on the road. The employees can use their mobile, laptop or any device to take a picture or scan the receipt and send a copy to the company. When the system receives the receipt, it will automatically be saved for future use. Employees no longer have to deal with damaged and lost receipts.
- Easy to understand expense reports
Looking at various expense reports can be overwhelming especially if you are not an accountant. The tendency is you will end up ignoring these reports and wind up not knowing the financial status of your company. Good thing that expense reporting is made simple and easy to understand with management software. All kinds of expenses are organized so you can see spending patterns. This will allow you to figure out ways to save on certain expenditures.
The expense report may be simple but it covers all the things that you need to know about the finances of the business and the costs incurred by each staff.
- Quick response
All expenses, regardless of how big or small the amount is, still need to go through the same process. It can be frustrating for an employee to wait a long time for the reimbursement of a $10 expense. Most of the time, small amounts are neglected and left stuck in the system. With the requisition and payment request feature, the wait time is significantly shortened. In addition to the shortened waiting period, the feature also prevents duplication of entries.
- Integration of your accounting tool
Every department in an organization is allotted a certain budget which the employees can use for work-related expenses. Each of these department heads will then have to create their own expenses report to be submitted to the accounting section. Merging all these different reports into one file can take several hours. When using the expense management software, the report can be generated faster since all department reports can be automatically synced into the main accounting system.
Any company would not want to incur additional costs on software and devices but if it will make the processes within in the organization faster, then it’s worth considering. The use of the tool will not only be beneficial to the management but the employees as well. Since there are different products to choose from, it is important that you check reviews of the best management software.
Learn about expense management software by visiting CrowdReviews.com and read through the expense management software reviews.
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