Savings made simple: The art of business expense management

All businesses have to track and analyze their expenses to ensure that company funds are being used effectively, ensuring there is no overspending.

To make this process easier, many companies are now utilizing modern expense management software to help manage their expenses. But what does expense management involve?

Photo by micheile henderson on Unsplash

Read on to find out the art of this software and why your company should be using it.

An introduction to expense management software

If you aren’t too familiar with this type of software, your first question may be – what is expense management software?

It’s a digital alternative to its manual form and streamlines things like the reimbursement of employees’ business expenses for areas including travel.

This modern software also allows managers to pre-approve budgets, as well as employees having the ability to track their expenses on the go, amongst other things.

As a brief overview of expense management, it’s only right to delve deeper to find out the art of this solution…

How does expense management software work?

It’s extremely simple to get used to, and inputting data doesn’t take up as much time as it would with traditional software, which boosts business productivity.

When an expense is entered into the system, it automatically flags or approves it based on pre-set functions.

If approved, a payment request is sent and the transaction is posted to the accounting system. Not only does this streamline this process, but your finance team can budget and forecast using this data more accurately and effectively.

There are more features that this software can include, so let’s take a look at a few:

● Combine with credit cards and bank accounts

With modern software, you can integrate company cards and bank accounts for faster and more accurate reimbursements.

It eliminates having to manually reconcile expenses with accounts at the end of certain times, whilst creating a platform to view any potential issues.

● Automation

This is widely used within many business areas and helps with accuracy and productivity.

In this case, automated data entry uses specialized software to take information from images of receipts that are scanned.

This data is verified against pre-defined parameters and any discrepancies are easily identified and put into the expense reporting system.

Saving time from not having to enter manual data is the main benefit, but it also ensures compliance with business regulations and reduces the chance of human error.

● Data analytics and reporting

Some of the best expense management software has customizable reporting, so you can generate personalized reports to gain useful insights. These can help your accounting team find opportunities for business improvement to boost revenue, whilst identifying any fraudulent activity or unauthorized expenses.

● Customizable expense categories

The freedom to customize expense categories allows you to view spending in a way that suits not only your company but also individual needs.

More major benefits include making it easier to identify overspending – ultimately saving on company funds.

● Mobile application

Many modern solutions include mobile capabilities to allow employees to submit expenses on the go.

This speeds up the whole reimbursement process, and reduces the risk of missing receipts, as they can immediately be entered into the system.

The art of business expense management lies in the way your company wants to use it. And with such modern solutions, you can customize expense management in the best way that suits your business.

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