November 22, 2022

What is Expense Management Software?

Introduction

It is no secret that business expenses can be a major drain on your company’s bottom line.

However, with the right solution, you can make sure that your employees are reimbursed correctly, on time and that their spending is well-controlled.

In this post, we will discuss about expense management software and how it can help your organisation cut costs while improving employee productivity.

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Understanding The Basics

Understanding the basics of expense management software will help you determine if it's right for your business.

Before we define expense management, let's take a look at what it actually is.

Expense management is a way to record and track employee expenses so that they can be easily reviewed and audited by management.

It provides an accurate representation of who spent it, what was spent on any given item or service so that you can make better decisions about future expenditures.

The advantage of using this technology is that it facilitates understanding your employees spending habits much easier than manually doing so. It is also useful for managers not involved in day-to-day operations (who may not know about every purchase).

What is Expense Management Software?

Expense management software is a tool that helps businesses to manage their employee expenses and reimbursements.

It can help you to reduce the amount of time you spend on managing such expenses and reimbursements.

There are many types of employee expense management software available today, including:

  • Cloud-based solutions which allow access from anywhere via the internet;
  • On-premises solutions that require installation on your computer system; and
  • Hybrid solutions combine both cloud-based and on-premises features.

The benefits of expense management software include:

  • Better control over your company’s finances
  • Improved compliance with legislation and regulations
  • Easy to use for all employees.

What can Expense Management Software Do For You?

  • Automate the expense management process
  • Reduce the hassle of managing expenses, both for the employees & the finance teams
  • Improve your company's bottom line by reducing the cost of expense management. This can be done through automation, AI, and machine learning technology, which will help you make better decisions about how to reduce costs in your organisation.
  • Save time and money on expense management by automating processes like entering expenses, approval, and reimbursement. By eliminating these manual processes, you can save time that would have been spent on them while also reducing errors caused by human error or miscommunication between team members working together on various aspects of an expense report (e.g., approving or reimbursing).

Automation can also help you save money by reducing the number of people needed to manage your expenses. For example, if you have a team of five people who manage expense reports manually and each person processes 20 reports per week, that's 100 hours spent on expense management each week! By automating this process, you could potentially eliminate four full-time employees.

Automating Your Expense Management Processes

Automating your expense management processes can help you to save time, reduce errors and increase productivity. It also helps you meet compliance requirements. Expense management software provides a way to manage employee reimbursement requests and integrate your expense management software with other programs such as payroll or accounting solutions.

Helping Your Managers Stay on Top of Their Expenses

As a manager, you need to know what your employees are spending. This is especially relevant in industries where the average employee isn't aware of their company's policies or procedures regarding expense management.

You also need to be able to control and approve expenses. Your team members may not understand what they can or cannot do with the companies, so it's important that they follow protocol and get approval before spending anything out-of-pocket.

Managers should have visibility into everything going on within the company's financials area—they should have access to relevant data related to finances, especially employee expenses, so that they can see the big picture and make informed decisions about those matters, moving forward.

Giving Your Employees Greater Control Over How They Manage Their Own Expenses

There are many benefits of giving your employees greater control over how they manage their own expenses. For example, it will help them to:

  • Report their expenses online
  • Submit receipts online
  • Track their expenses online
  • Receive reimbursement for those expenses more easily. This is especially important if the company gives a bonus based on the number of reimbursed expenses report each employee submits.

It will also help the company manage expenses more effectively and reduce the risk of employee fraud and abuse.

It's Easy to Manage Your Expenses and Reduce The Hassle of Doing So With Your Expense Management Software

When you use an employee expense management software service, you can easily manage employee expenses and make sure they're being spent in the most efficient way possible. The software is easy-to-use, saves time and money, is secure, and is a sound investment overall. You'll have better control over your spending habits than ever before!

An expense management software can help you to control your spending better. It's a wonderful way to ensure employees are not overspending on anything, and it will help them keep track of what they are spending money on and where it's going. If you use this software, you'll be able to easily see what your expenses are each month and how much they total up.

Expense management software is a tool that helps businesses to manage their employee expenses and reimbursements.

Expense management software is a tool that helps businesses to manage their employee expenses and reimbursements.

It can help you track their expenses and reimbursements, manage travel and entertainment expenses, manage expense reports, and so on.

If you have employees who are on the road travelling or attending meetings, they can use this software to submit their expenses & appended receipts for reimbursement. The expense management program also lets you put in supplier & customer information so that when one of your employees goes out on business with them (for example), they can submit their receipts directly through the platform.

In addition to using expense management software, here are some other tips for managing your business’s expenses:

In addition to using expense management software, here are some other tips for managing your business’s expenses:

  • Set up a process for reimbursing employees. If you have employees that are travelling for work or attending conferences, it is important to set up a process for paying them back for their expenses. You don't want to have loose ends and discrepancies when it comes time to pay them back.
  • To help with this process, use an expense management tool that tracks and manages reimbursements in real-time so that you know exactly how much each employee has spent on their trip or event. This will help prevent mistakes from happening down the road when it comes time to file taxes.
  • Set up a process for tracking expenses. As soon as an employee starts working on something new (i.e., setting up a new project), they should start tracking all of their related expenses through an expense management tool so that everything goes into one place instead of getting lost in emails or spreadsheets.
  • Set up a process for approving expenses. Once an employee has completed tracking all of their related travel and conference costs through an expense management software platform, they can submit those expenses via their mobile phone or via their web browser to their approver for approval and subsequent payment by finance.
  • Set up a process for approving reimbursements. After reviewing these submissions and making sure everything looks good on paper (or electronically), then send out checks based on those approvals.
  • et up a process for reconciling expenditures against receipts or invoices later on down the road--maybe even once per year--so no one gets away without paying something back at some point."

Types of Expense Management Software

You can choose from three types of expense management software:

  • Software as a Service (SaaS). This is the most common method for managing expenses. A third-party vendor hosts the software and makes it available for download on your computer or mobile device. You’re billed based on how much you use, so there are no upfront costs or long-term contracts to sign.
  • On-premises. With this option, you install the program on your own server in your office or at home (or anywhere else within reach). It requires more maintenance than SaaS and may be reliable because non-financial people control its location and configuration.
  • Cloud-based/hosted/local hybrid solutions also exist; these allow users to access all their data remotely through an internet connection while storing some files locally if desired.

Features You Can Expect From An Expense Management Software

  • Automated expense reporting: Expense management software uses various methods to automate the process of submitting expenses, including email, fax, and web. The system can also accept receipts and provide users with an electronic receipt system.
  • Expense policy management: Policies are important to your organisation’s financial health. They help ensure that employees submit only accurate expenses, which helps keep your company in compliance with tax laws and prevent fraud or abuse of company funds. For example, you may require that employees submit receipts for £50 or more within three days after travelling on personal business trips; this will ensure that everyone follows the same rules—and it’ll give accounting staff time to review them before approving payment requests.
  • Expense reimbursement management: An effective system should allow you to identify overpayments quickly so they can be recovered before they become lost revenue (or worse). It should also enable automatic payment of underpaid bills when there’s enough money available in an account—again helping avoid lost revenue due to overdue payments by employees who forget about paying their bills until after payday rolls around again next month!
  • Expense report management: A good expense management system should help you stay on top of your employees’ travel expenses and those for other types of business-related costs. It should be able to track reimbursements and billable time spent by employees on specific projects so that only the appropriate amount is charged back to clients—and no more.
  • The system should be able to generate reports that you can use when preparing your company’s year-end financial statements. The reports will show how much money was spent on travel, entertainment and other business expenses and which employees incurred these costs.

Expense management solutions can significantly improve your company’s bottom line

Expense management solutions can significantly improve your company’s bottom line. They can save you time and money, as well as reduce the hassle of managing expenses.

Let’s take a look at what makes expense management software so valuable:

  • Employee expenses are one of the most common expenses for companies to manage, but it can be quite time-consuming for employees to keep track of all their business travel, food and drink purchases, office supplies and more. Expense management solutions are designed to simplify this process by providing an easy-to-use interface that allows employees to record their expenses quickly wherever they are in the world with their mobile device or computer (as long as it has access to an internet connection).
  • Once recorded in the system, these transactions are automatically uploaded into a cloud database where they can be viewed on demand by managers or other employees who require access (for example, if they need approval). This means there is no need for any manual data entry, which significantly reduces errors caused by manual data entry errors or time wasted waiting for approvals from multiple stakeholders before making purchases - leading to potentially days worth of savings!

Conclusion

As you can see, expense management software can be a great tool for your business. It’s easy to use and offers many benefits. If you aren’t sure whether it would benefit your company, talk to one of our experts today or take a 30-day free trial. No credit card information is required.