Managing and keeping track of employee expenses is one of the most crucial aspects of running a successful business with many companies opting for a more traditional and manual means of approach such as handwritten documentation, spreadsheets, receipts, and notes.
These expenses include travel costs, company lunches, replacement of office necessities, and so on. However, this can become quite problematic and complicated for many companies with an increasingly high number of employees, and company resources, and spread throughout numerous locations that slowly render such expense management platforms obsolete and generates more problems than it solves.
However, all of this can easily be resolved by switching to expense management software and making things a lot easier for your employees and company.
What Is Expense Management Software?
Expense Management Software is an automated expense reporting application that aids in the process of recording, reporting, and monitoring employee expenses and finances and tracking their spending.
The top expense management solutions allow employees to easily submit expense claims via their computers or smart devices, eliminating the need for any paperwork. This enables them to quickly claim reimbursements while simultaneously reducing the chances of policy violations. It also provides the business with a “paper trail” record of the claim in detail, so if any further investigation is required this can be easily done.
Expense Management Software can prove to be extremely vital for a company operating on a massive scale with a dispersed labor force. By implementing expense management software tools, you can further expect;
1. Simplify and Speed Up the Process:
Traditional means of expense reporting include printing paper, attaching invoices, and sending them to finance managers for approval. However, by using Expense Management Software, employees can easily reduce the time and cost spent on these activities by simply submitting them and the software automatically sends the report to a financial supervisor for approval of reimbursement and credits the amount to the payroll.
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2. Reduces Errors and Delays:
Manual data entries tend to create errors and mistakes while also increasing the chances of duplicate entries and overpayments. By utilizing Expense Management Software, you can improve the accuracy of the accounting process which further reduces the chances of errors and increases the detection of false data entries being made.
3. Fraud Prevention:
For companies operating on a massive scale, it can become quite difficult for financial supervisors and auditors, using the manual method of expense management, to detect false entries which can negatively impact the financial state of a business.
By successfully implementing Expense Management Software, the automated process greatly reduces any fraudulent activities and alerts the financial management team to any unauthorized or suspicious approval of payments.
4. Visibility Improvement:
Expense Management Software enables the usage of a dashboard where data expenses made by employees are collected and represented on a visual display for finance managers in the form of data charts and graphs.
This enables them to easily, on average, detect how much a company spends on an employee and the duration it takes for the approval of a cost to be made.
Is Expense Management Software Worth It?
For any thriving business, keeping track of employee expenses is a must and digitization is a crucial step toward a more robust and efficient working system. In the long run, a more streamlined management system will greatly affect the day-to-day running operations and finances of a business.
If you feel like implementing efficient expense management software then look no further than Happay; a user-friendly platform capable of integrating multi-level approval workflows, identification of policy violations, tighter budget controls, and agile decision-making that can save your company time and money. If you ever feel up to it then learn more about expense management software before getting started.