Expense management software allows businesses to automate a variety of tasks associated with expense management. It provides powerful auditing and cost analysis tools, and makes compliance much easier to achieve.
Over fifty percent of all companies now use expense software, with some users opting for cloud based solutions and others opting for desktop software.
Advantages of expense management software.
The best cloud based expense management software utilises mobile technology via downloadable apps. This facilitates GPS route logging for fuel expense claims, and OCR (On-screen Character Recognition) technologies to automate the extraction of data from receipts.
Expenses can also be tracked by department, and analytics provide near real time insights for expenses like fuel, accommodation, and training. Cloud based solutions also have the added advantage of making this data available anywhere, via a well organised and easy to use interface.
After your expense management system has been in place long enough to gather meaningful data, it should be capable of producing surprisingly accurate expense forecasts that are useful for making informed decisions about spending.
Since staff no longer have to spend time managing manual expense claims, chasing receipts, and calculating how much VAT to reclaim, you can reallocate human resources to other tasks and improve the productivity of your business.
Users are able to track payments across departments and view analytics which pertain to cost management. These programs provide real-time insights into company expenses, such as travel expenses and training.
Users access all of this information from an easy-to-use dashboard, which shows various reports, such as approved expenses and impending expenses.
How much could Expense Software Save my Company?
One study suggests that the total savings gained automating staff expenses could be as much as 75%. Furthermore, there was a 35% decrease in the time taken to process staff reimbursements. Staff simply claim their expenses via a smartphone app or web portal, and a printable receipt is provided upon submission.
Good Expense management solutions employ secure business class data centres to protect your data from prying eyes, whilst from end access is restricted by security hash protection. System administrators can implement further safeguards if required, including limiting access by IP addresses to ensure that the data can only be accessed by devices on your company network.
With traditional expense management, lost receipts often lead to a business being unable to reclaim all of the VAT is it entitled to claim. Smartphone apps allow employees to capture receipts via their smartphone camera at the point of sale, this eliminates the problem caused by lost hard copies since the required data has already been captured.
Currency exchange rates and the accompanying exchange fees can tax even the most competent bookkeeper, but good expense management software will automatically convert currencies for you and can even calculate exchange rates on the fly. Expenses can even be submitted in a foreign language.
Corporate Card Transactions
Card transactions can be downloaded automatically and reconciled without the need to chase employees for manual statement reconciliations.