Most business like small and mid-range business uses spreadsheets, papers, computer documents, and other methods to record and report their expense. This might be a good system for those companies that have fewer data to record and for a business that does not do many transactions. However, a company that has to deal with many transactions and has many employees in different locations cannot do their expense reporting with these manual processes.
When it is challenging for companies to record and report their expense using the usual ways that are mentioned above then they rely on advanced tech solutions like “expense management software.” In this article, I will tell you all about it what you need to know.
What is expense management?
Expense management is a manual process of recording, submitting, accepting, refunding, and reviewing the payment and transactions that employees pay on the behalf of their organization.
Sometimes, it happened that the workers in an organization experience some expenses for keeping the business running including travel and environmental expenses and they pay them on the behalf of their company. To get reimbursement for these expenses, they must record and report their expenses to the company including all the detail and receipts of the transactions. They need to make a report in which they need to attach all the receipts and solid proof of the transaction, and then submit the report to their management and finance team. The management and finance team examine the report and reimburse the employees if the manager approves their report and the finance team.
In simple words, expense management is the system of controlling the way employees pay for business expenses, track their expenses, and reimburse them.
What is expense management software?
They were past days when companies used traditional and common ways like spreadsheets, documents, and papers for recording their expense. With the advancement in technology, many companies start to use expense management software to record their organization’s expenses because it saves time as well as money.
This software is a sort of app that simplifies the process of tracking, recording, submitting, and reimbursing expenses for the organization. Using this software, an organization can manage their travel booking, can automate their expense reporting and submission system, watch reimbursement approval, quicken reimbursement, and can track the expenses claimed by the employees.
This software automates the entire process of “Travel and Expense Management” and reduces the risks related to the manual expense management system.
How does expense management software works?
This software gives organizations a proper automated system for their Travel and Expense Management. It gives them an efficient and affordable way to manage reimbursements.
If an employee experiences an expense and pays it on the behalf of a company, he can claim later for reimbursement. Every company has its own reimbursement policy that every employee of that organization must follow. Expense management software enables employees to easily report and submit their reimbursement and it also helps finance teams and managers examine the legitimacy of the reimbursement claim.
Using automated software, employees can take pictures of receipts, can make reports to claim reimbursement, and can submit the report online to the manager and finance team of the organization. The manager and finance team can efficiently and correctly examine the report and check its legitimacy using the software. If the report obeys the T&E policy of the organization then the employee will be reimbursed.
What are the advantages of expense management software?
Following are some of the major benefits that organizations can get using automated expense management software:
- Manage and organize expense receipts
Using this software, workers of an organization can accurately report their expenses using their smart devices. The software enables them to take pictures of the receipts instead of assembling and attaching the hard form of receipts with the report.
- Implement T&E Policy
Automated software ensures the implementation of the T&E policy that organizations make for Travel and Expense management.
- Simplify expense report approval
Usually, employees need to make a proper expense report and attach receipts to get reimbursement while an automated system makes expense reporting easy. It helps workers to take pictures or receipts and make a report instead of collecting copies of receipts. It can make the process quick and efficient.