Employee expenses account for between 8% and 10% of the average company’s budget; therefore, it makes sense to keep costs under control. Businesses must thoroughly examine costs to verify that they are compliant with legislation and that staff is not overspending or purchasing non-work-related products. Here are a few ways to re-engineer your expense management software that businesses must consider in today’s world. Effective expense management has a direct impact on your organization’s financial performance, and the utilization of expense management software provides companies with the necessary resources to monitor and regulate business expenditures.
- Use expense management software
Many companies globally depend on traditional legacy systems to track and report expenses, utilizing methods like spreadsheets, paper invoicing, receipt tracking, and manual data entry for expense control. As businesses expand, managing these processes becomes increasingly challenging and expensive with outdated travel and expense management platforms.
Paperwork and accounting documents are everywhere and have high chances of getting mixed up or lost. Documents account for most of the moving parts in any company.
In today’s world, where technology is advancing on a massive scale, you can save time and money by going paperless. An expense management software is what can help you there!
With expense management software in place, you not only just ensure that documents don’t get lost, but also can digitize and access them whenever necessary. Along with the advantage of going paperless, expense management software helps you store information and documents without any manual interference.
Moreover, your expenses can be organized and reviewed with a expense management software. It makes things easier, speeds up employee payouts, reduces delays and errors, increases efficiency and compliance, boosts productivity, improves workflow, and ensures that expense management policy regulations are followed.
- Involve everyone in the company
As everyone plays a role in the company, it is important that everyone has a clear idea of managing expenses. The only way to save costs is to standardize procedures and regulations throughout the organization. An accountant’s job is easier when everyone has the necessary tools.
With an expense management tool like Zaggle EMS, you can share advance travel funds with employees through card and mobile application ensuring the employees’ peace of mind. Employees will be happier at work and worry less about getting reimbursed for travel and other business expenditures when they use the company’s expense management software.
- Leverage workflow automation
Using workflow automation software to streamline the expense management process speeds up the expense approvals, reduces manual mistakes, and removes the need for back-and-forth email exchanges.
Automation saves time in completing predictable and repeated activities, eliminating the need for manual involvement in the process. The information flows in a smoothly and seamlessly along a predetermined path. Everyone knows what’s going on, and companies can quickly figure out where things have stalled.
- Avoid micromanagement
When it comes to meeting with clients, suppliers, or future workers, 25% of employees will skip the client meeting to avoid personal expense payout. Your workforce usually lacks the knowledge on how to pay their own way since they don’t know how to submit an expense claim or get reimbursed.
Employers and managers must devote time and resources to keeping tabs on the entire scenario. The procedure should be simple and straightforward, and it should be able to run without manual intervention.
All of this is handled deftly by spending policies, which allow for the implementation of company-wide policies with a transparent flow. With a mobile app, employees are spared the burden of having to memorize complicated regulations and methods. By keeping everyone’s spending under direct management, managers can increase or lower their workers’ spending limitations.
- Re-examine the procedures and policies in place
Expense reporting is always advancing. Ensure your company’s expenditure reporting procedure is operating as intended by meeting with customers and conducting frequent audits.
A thorough audit and review of approval procedures can only improve the process’s efficiency and help you identify any flaws. Regular audits of employee spending reports can help assure accuracy and foster openness.
Re-engineer your expense management system
If you are in the process of re-engineering your expense management system policies, talking to one of our consultants to get a clear idea is a great way to get started.
