Expense management is a multi-step business process. An organization can streamline the crucial process only by tracking, processing, paying, and auditing various expenses efficiently. Many enterprises simplify the process using expense management software.
The features provided by the software help businesses track, process, reimburse, and audit various employee-initiated expenses without expanding the finance team. The real-time spend visibility facilitated by the expense tracking software enables managers to make informed financial decisions.
At the same time, the finance team can use the software to make budgets and predict cash flow positions based on real-time expense data. Each enterprise can leverage multiple benefits by implementing the right expense management solution.
11 Important Benefits of Expense Management Software for Businesses
No enterprise can control costs without implementing clear expense policies. The expense policies will make employees refrain from incurring non-reimbursable expenses. Expense management software allows administrators to configure granular expense policies.
The configuration enables each employee to access relevant guidelines using the software. For instance, work travelers can use the software to know what travel products to book and what travel expenses to avoid.
Expense Approval Process Automation
Businesses allow employees to incur specific expenses only after getting approval from the appropriate authority. However, they must ensure that each employee can send the approval request directly to the right approver. Also, the approver must review and approve the request as early as possible.
While configuring the expense management software, administrators can define multilevel approval hierarchies. Employees can use the software to send approval requests to the appropriate authority directly. Likewise, the approver can use the software to approve or reject the request early.
Mobile Expense Reporting
Every enterprise can streamline expense management by following paper-based expense reports. The expense management solution enables enterprises to go paperless. Employees can generate digital expense reports by accessing the software on mobile devices.
Also, the software generates digital expense reports automatically by capturing information from invoices, receipts, and bills. The feature enables employees to create and submit automated expense reports in minutes across locations.
Online Receipt Management
While generating automated expense reports, employees scan various invoices and receipts. The expense tracking software stores the digital receipts securely in a centralized location. A manager or auditor can access and track the digital tickets seamlessly using the software. Hence, it becomes easier for companies to save time and resources by modernizing the conventional receipt management process.
Digital Audit Trails
In addition to keeping receipts accessible, the expense tracking software generates audit trails automatically. It creates audit trails by capturing the comments made by approvers while reviewing and processing employee expense claims. Hence, it becomes easier for enterprises to prevent policy violations and expense fraud by auditing employee-initiated expenses regularly and efficiently.
Faster Expense Reimbursements
Employees expect employers to reimburse expenses as early as possible. They feel unmotivated and experience stress when there is a delay in expense reimbursements. However, the finance team needs more time to review and process expense claims.
Expense management software helps enterprises reduce expense reimbursement time in several ways. Firstly, the finance team can review and process automated expense reports quickly due to no data entry errors.
Secondly, they can transfer payment directly to an employee’s account using the ACH payment. Hence, it becomes easier for businesses to reduce employee financial burden by reimbursing expenses without delays.
Real-Time Spending Visibility
Expense management systems store expense data of employees in a centralized location. Also, they update the expense data automatically based on expense reports generated by employees. Decision-makers can track employee-initiated expenses in real-time using the dashboard provided by the software.
The real-time expense tracking helps the finance team speed up reimbursements. At the same time, decision-makers can access the information to make informed financial decisions while making budgets and predicting cash flow positions.
Custom Report Generation
The dashboard provided by the expense tracking software automates report generation and scheduling. A manager can use the dashboard to generate custom reports instantly using parameters like department, project, or objective.
Also, he can make the reports more impactful by creating relevant expense categories while configuring the software. Hence, enterprises can generate custom reports on demand while analyzing and predicting operating costs.
In addition to unifying employee expense data, expense management software makes data analysis an ongoing process. The software helps managers make sense of the data using advanced data analytics. Managers can leverage the feature to detect trends and patterns without putting in extra time and effort. Furthermore, they can leverage data-driven insights shared by the software to make strategies that control costs without sacrificing employee experience.
The new-age expense software solutions accelerate the expense management process by sending various automated notifications. For instance, they speed up expense request approvals by sending messages to the approvers.
Likewise, they speed up expense reimbursements by sending notifications to the finance team. At the same time, the information sent by the software helps decision-makers detect policy violations and expense fraud in real time.
Seamless Software Integration
Expense management solutions these days support API integration. Enterprises can leverage the feature to connect the software with existing business tools. For instance, they can use the API to unify travel and expense management by integrating the software with existing travel management solutions.
Likewise, they can boost the software’s functionality by integrating it with HRM, ERP, accounting, or payroll software. The integration will result in seamless data transmission between the connected devices, facilitating data-driven decision-making.
Expense management software helps businesses streamline a complex financial process through automation. It helps companies reduce the time and resources required to track, process, reimburse, and audit various employee-initiated expenses.
It enables employees to submit digital expenses without extra time and effort. At the same time, the finance team can reduce expense reimbursement time significantly using the expense tracking software.
Furthermore, the new-age expense management software helps decision-makers find cost-saving opportunities by leveraging real-time employee expense data. However, a business can leverage these benefits only by implementing software that is easy to configure, customize, and integrate.