Introduction
“Control your expenses better than your competition. This is where you can always find the competitive advantage”
Sam Watson, Founder of Walmart
Expense management is one of the most complicated tasks performed by the Human Resource and Finance Department in any organisation. However, it is vital, as a tight rein on corporate expenses contributes to more informed management decisions and hence, better profits.
Managing expenses manually is no longer practical, especially in large and medium-sized business where different types of expenses are being recorded simultaneously. Manually recording, categorising and finally processing such expense claims is time-consuming. Not to mention, the high chances of human errors while processing the requests.
An automated expense management system is the one-stop solution for a simple, quick, accurate, and efficient corporate expense record and reimbursement process. Let us learn more about this system
Expense Management System
An expense management system helps in tracking and managing corporate expenses, be it in any form- mileage, entertainment, petty cash, per diem, travel, etc. and also expedite reimbursement requests. The dedicated system helps make expense filing, expense tracking, and reimbursements easy and hassle-free.
Here are some of the top features of expense management system you should look for before investing in one.
Salient features of the best expense management software
1. Auto-scan receipts and bills
Manually entering the details of receipts and bills and verifying them are two of the most time-consuming tasks of a reimbursement process. One of the best features of expense management system is a receipt scanner. These scanners can be accessed via a mobile application too most times. The application scans receipts and enters the relevant data into the system automatically. It also alerts you in case of duplicate receipts.
2. Approve claims in different currencies
When employees travel internationally, they end up spending in different currencies. Some employees travel to different countries during the same trip and hence have multi-currency receipts. The expense management system should be able to accept claims in different currencies and convert them into the local currency seamlessly.
3. Identify intentional and unintentional errors
With a lot of receipts to submit and multiple days of claims to be handled, both employee and HR errors are quite common. One of the vital features of expense management system that will save the company the trouble of backtracking processes to identify errors is having a flagging system in the software.
The software should be able to flag duplicate entries, claims higher than the approved amount, and any kind of claims that don’t come under the company’s reimbursement policy. This will save the company money and time.
4. Auto approvals and rejections
By including a pre-set list of rules and requirements, you can opt for auto approvals and rejections in the system without requiring manual intervention in many cases. Claims that are straightforward and simple can be auto-approved or rejected. In case of rejection, the system gives the reason for the same to the employee and asks for re-submissions.
5. Digital audit trail
An expense management system that offers a digital audit trail feature makes sure all relevant documents related to employee business expenses are recorded at every stage in real-time. This makes it easy for the business to streamline reimbursements and keep documents ready for audits and checks. This reduces the time taken for expense reporting.
Conclusion
According to the Global Business Travel Association (GBTA), 19% of expense reports filed have errors in them and it takes an average of 18 additional minutes to correct each of these reports. The hidden costs of checking and processing an expense report can unnecessarily drain the budget of the company.
Using the right expense management system will save the company money and make it easier for employees to file and claim reimbursements.
Reference Link: https://www.gbta.org/blog/how-much-do-expense-reports-really-cost-a-company/
