When you are spending money on business travel, it is important to know where your money is flowing. Keeping track of your money will help you know everything about cash flow and plan your spending. However, getting a handle on the right information is very important to make informed decisions.
By automating expenses, you will have access to the most critical data generated based on various performance indicators. This data will give you clear and accurate views of company spend using which you can plan for the future. This insight will help you develop good expense policies and lets you find out better deals with the suppliers and figure out the common areas where employees are filing non-compliant expenses. Accessing this data would also help you find opportunities for cost savings.
Watch trends and note spending patterns
This factor would figure out ways to reduce costs with suppliers and identifies areas where employees are not complying with the rules.
Out-of-policy does happen
Around 10% of the claims approved by managers are out-of-policy. It may happen by mistake or done intentionally to promote fraudulence, and these expenses go unnoticed unless it is closely monitored.
Review historical data to know spending limits
Reviewing spending trends will help determine limits for meals, accommodation, and flight tickets. You can compare these stats with the industry standards.
Use data to forecast better
The data can help you manage cash flow by analyzing expense trends. You can eliminate much of the guesswork involved in spending and plan future spending in a better way.
Having data analytics would be of no help finally, it is what you do with the data that counts. Use the data to drive changes in the expense reporting process would actually bring in positive results.
The spend management software platform will help with all of the above and ensure that your spend management function is data-driven.