Effective expense management is inevitable for modern-day companies to stay competitive. With proper management of expenses, you can enhance your organization’s profitability and bottom line. As a part of expense management, you have to track the cost of every business activity.
Moreover, your employees should submit their expense reports to reimburse their out-of-pocket expenses. Businesses often use spreadsheets to avoid the upfront costs of investing in expense management software. This seems reasonable, considering that spreadsheets are a familiar and convenient way to categorize data. But spreadsheets are only effective when you have a handful of employees. When your company receives a huge amount of expense reports, keeping track of everything seems daunting. And when you rely on spreadsheets, there can be instances related to loss of receipts, undetected fraudulent expenses, etc.
To maximize efficiency and save time, investing in expense management software is always rewarding. Expense management software is suitable for optimizing expense reporting and improving compliance to accelerate reimbursement and transparency. Here are some top ways with which expense management software can ensure transparency in your company.
Records Expenses from Anywhere
Nowadays, companies are increasingly investing in remote working models. In the absence of expense management software, you cannot get clear insights into your employees’ spending habits. Employee expense accounts can be easily accessible from anywhere with an advanced expense management software solution. Remote employees can upload their expense reports from home or on the move. It allows your company’s accounting team to review and approve them automatically. Furthermore, everyone will stay updated, and you can ensure a great degree of transparency.
Secures your Company from Expense Fraud
It is pretty easier for your employees to commit expense fraud when they are working remotely. Nowadays, it is simpler to edit receipts and upload them on your company’s portal. But with automated expense management software, you can identify and eliminate fraud from your company.
For instance, if an employee submits a modified receipt, the expense software will automatically recognize it. Furthermore, it can identify the lingering risks associated with expense reports. By preventing fraud, an expense management software solution ensures complete transparency.
Get Greater Visibility
One of the key highlights of expense management software is that it offers you consolidated data. It can also recognize spending patterns and identify areas that can help you to save costs. But it is not possible to manually put together data from spreadsheets. With expense automation, you’ll get reliable analytics.
Moreover, expense automation solutions offer you highly customized analytical reports on trips, violations, reimbursements, etc. You will have access to real-time data to facilitate quick and intelligent decision-making. For instance, you can see which employees are causing policy violations with a few clicks. So as you can see, expense management software provides your finance team with great visibility and transparency. You can even use these reports as proof of compliance during audits.
Easy Integration with other Software Solutions
If you have an ERP system, you cannot expect it to integrate with spreadsheets or other manual solutions for expense management. However, things are different when you have an expense management software solution. Moreover, manually formatting and uploading the data into the ERP is time-consuming.
To mitigate this issue, you can opt for cloud-based expense management software. In this manner, you can allow expense data to flow across the finance department. Note that expense management software also allows you to export data in various formats. You can easily share data with your employees and highlight areas where they should minimize or maximize spending.
Spreadsheets offer limited security on data storage and backup. You can quickly experience security issues when working with spreadsheets to record expense data. But things are different with expense management software. Nowadays, expense management software comes with advanced security features that protect your expense data from malicious actors’ prying eyes. Hence, apart from transparency, you will get greater security with automated expense management. Using manual ways to handle expenses can be severe for your company. You should invest in advanced expense management software solutions to address the core issues and ensure transparency. Contact a reputed vendor today!