Slow reimbursement can lead to financial stress among employees, which in turn, can harm their productivity. Traditional expense management is typically a slow process and can have several negative impacts. Enter your email or phone number to start simplifying your preaccounting with Expensify’s What is Expense Management Automation expense management services. If you’re ready to use hyperautomation in your business, we recommend getting started with IBM Cloud Pak® for Business Automation. This is a set of integrated, market-leading software designed to help you solve your toughest operational challenges.
Inefficient Expense Claim Procedures:
- The payment may be done by way of cheques, direct transfers, or cash reimbursements.
- You can build fully customizable workflows that are as unique as your process requirements.
- Modern expense management solutions like Expensify are designed to integrate seamlessly with a range of other critical business tools, like Xero or QuickBooks.
- Assess all of the customization options available within the solution and look for the ability to tailor expense categories.
- Continuous improvement is key to optimizing expense management processes and driving efficiency.
They automate all aspects of T&E administration to remove risks linked with manual expense handling. Furthermore, cost control tools guarantee adherence to guidelines for all expense claims in your company. This reduces manual data entry and mistakes and speeds up approvals and payments.
Cost and ROI
Approvers can review expense details, receipts, and compliance alerts directly in the system. By automating expense management, businesses can avoid the time-consuming and error-prone nature of manual processes. Expense management software allows the consolidation of expenses into single reports. Companies can use this data to negotiate volume discounts and encourage employee frugality. Expense management software improves accuracy by flagging errors, preventing overpayments, and sending alerts for overdue reports or payments.
Expense frauds
Many expense automation tools include both a mobile app and web versions to simplify the expense process for your team. If you are already using software for expense management, it’s a good idea to take note of any gaps in functionality and what you want to achieve with a new automation tool. At the same time, decide whether there are features you currently have that you can do without. As a leader https://www.bookstime.com/ in your business, chances are you are more focused on bringing in revenue than dwelling on the ins and outs of an administrative process like expense management. Automating the expense management system affects everyone in the organization, so you’ll need to keep the key stakeholders informed about the changes. Teams involved in expense management include – finance and accounting, HR, and IT.
Real-time visibility over spending
By leveraging the Google Forms workflow automation, zenphi makes it easy to automate a wide range of common expense management tasks using an intuitive drag-and-drop builder. And from your team’s perspective, that same Google framework means the frontend is familiar for all users and makes submitting expenses quick and easy, saving time and eliminating errors. Preparing expense reports can be time-consuming, error-prone, and stress out employees and supervisors.
Submit reimbursement requests
In a manual expense management system, some employees could take advantage of the loopholes in the system and submit fraudulent expense claims. In a mountain of receipts, fuel bills, transportation tickets, and other printed documents, finding a duplicate bill or receipt is like looking for a needle in a haystack. To ensure your new tool is a good fit for your business, you should consider setting some goals for your expense management process. Does your existing expense management flow take up too much time for your finance team?
What is Expense Management Automation and why is it important?
- The software then extracts important information from the receipts automatically, so there’s no need for manual data entry.
- After the employee sends the report, approvers get notified via SMS or email.
- Some prepaid credit cards function by requesting real-time approvals before allowing charges to the card.
- But, if you compare the pros and cons of the manual expense management process, the cons surely outweigh the pros.
- When you are making expenses on so many different levels, the security of the company’s money can become critical.
- Accepted requests are sent further up in the process for expense processing and payment.
- The right solution must be cost-effective, scalable, and powerful enough to meet your expense management requirements.
This technology can also simplify tax compliance by generating reports that meet the requirements of tax authorities. Just because something has always been done a certain way doesn’t mean it’s still the best way to do it. Many companies cling to manual expense management processes, hesitant to change a familiar system, even if it’s holding them back.
- And finally, if there are no red flags, the finance department will reimburse your employees.
- Circula uses a web and a mobile app to manage credit card use, travel expenses, and even employee benefits.
- The expense approval occurs by setting spending limits and approved categories in advance.
- Compliance issues and fraud risks pose significant challenges in expense management.
- For example, an employee uses their money to fulfil expenses on a business trip.
- Unfortunately, your finance team could overlook and approve the fraudulent claim because of the mounting paperwork.
- Expense management automation is a game-changer for businesses seeking efficiency and accuracy in handling expenses.