expense management automation

You’ll automatically get expense updates as they are made, prompting employees to fill in their report details easily before submission. Most businesses will regularly perform audits to make sure that all expense documents are accurate and comply with both company policies and local regulations. However, doing this traditionally is known to be time-consuming and complicated. You’ll have to manually enter all details and find a way to store all physical documents safely. Check out article on the 7 effective ways to reduce business expenses to discover the 7 powerful strategies to slash business expenses and boost profits! Automatic data extraction and pre-defined rules minimize human errors common in manual processes.

Expense Management Software vs. Traditional Expense Management

expense management automation

The employee has to keep track of the payment receipts, bills, credit card statements, and other documents to submit expense requests. Expense management is just one of the many essential financial processes that organizations are choosing to automate for increased operational efficiency. Expense management software streamlines reimbursements and maintains accurate records for tax purposes, regulatory compliance, and better control over day-to-day spending. ERP companies offer expense management software to handle functionality beyond the core ERP system. Expense management software often integrates with traditional accounting and ERP systems.

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  • Carefully consider a fund’s investment objectives, risks, charges and expenses, as described in the applicable mutual fund’s prospectus.
  • It facilitates financial and improved expense management and contributes to strategic budgeting and financial planning.
  • Zoho Expense offers automatic expense recording, receipt scanning, and analytics.
  • Employees find it challenging to track their expenses, save the bills and receipts, and spend several hours filling out expense forms and uploading supporting documentation.
  • The features and benefits of automated expense management solutions and the top expense management solutions are also covered in this blog.

Although verification and validation is a time-consuming process, managers must look into finer details of the request, and not take any shortcuts or overlook any details in the expense request. Accepted requests are sent further up in the process for expense processing and payment. Unapproved requests or requests that need clarification are sent back to the employee for review and revision. In the Age of Digital Everything, employees expect the technology they use in their personal lives to carry over into their work.

Provide ongoing support to employees and managers

With an efficient expense management system it will be easy to preemptively identify any discrepancies in the company expenses and prevent financial losses. At this stage, the finance team will have to manually go over the report and supporting documents to check its credibility and authenticity. It’s only after an employee has filled out the expense report paper forms and attached physical copies of different supporting documents can they submit the expense report. Automation reduces the manual effort required to manage employee expenses, making the process simpler, faster, and much more accurate.

expense management automation

This assessment should include areas such as the types of expenses that are incurred, the processes for approving them, and the frequency with which expenses are recorded and tracked. It should also include an assessment of the current systems and processes used for reimbursement and auditing. Integrations will give you a more holistic approach to expense management and ensure that all aspects of your business expenses are working in parallel with one another.

Faster expense requests and approvals

This helps to ensure that expenses are within budget and that any irregularities are identified quickly. Automation can help detect and alert management on cases such as duplicate entries, incorrect https://www.bookstime.com/ payments, and unauthorized expenses, all of which could be indications of fraud. This helps the management to take quick corrective action and ensure that expenses are within the budget.

  • AI technology saves you time, allowing you to focus on decision-making instead of repetitive and monotonous administrative tasks.
  • Ultimately, the result you’ll get as a sum of all of them is an optimized expense management process.
  • It also extends to policy compliance checks, expense approval workflows, and reimbursement processing.
  • The easiest and most effective way to mitigate expense fraud is to automate expense reports.
  • According to the Global Business Travel Association, there is a 19% chance of expense reports with errors.
  • To make sure that approval doesn’t take any longer than it should, employees need to be sure that every document asked has been submitted.
  • Automation makes it easier to process employee reimbursements, as all expenses are tracked in real time.

Having real-time visibility into purchases helps managers monitor expenses and also keep a tab on the cash flow. Armed with this visibility, informed and timely decisions can be made on the remaining budget. Cloud-based expense management applications integrate with other business systems so that data is seamlessly exchanged between them. With disparate business applications talking to each other, managers and finance teams get the best insights from all of the systems and spend less time entering or validating data.

Benefits of Automated Expense Management

Consult with key stakeholders such as your HR and finance teams and get employees involved in the decision-making process. Regardless of whether your expenses are managed manually or automatically, you want to have expense policies in place. You can also boost expense automation adoption by rewarding employees who successfully use the tool. This could involve offering incentives such as additional time off or gift cards.

expense management automation

Get started with automating your expense management process

With automated expense management software like us, you can kiss the days of relying on manual processes goodbye. Our software empowers you to save time, increase accuracy, and eliminate the stress of manual processes for you and your team. Cloud-based expense management automation tools are likely to automatically update, meaning that you won’t have to worry about whether or not you’re up to date with new technology and features. You want to make sure that your expense policies are enforced properly so that every employee is adhering to them. This is why automated policy enforcement is considered a key component of expense management automation.

The visual form builder simplifies process automation by leaving out code-heavy automation and using a drag-and-drop interface to create workflows. Preparing expense reports can be time-consuming, error-prone, expense management automation and stress out employees and supervisors. Once you automate the creation, tracking, review, and approval of expense reports, you eliminate the error factor and track the spending more effectively.

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