Expense reports are not just a tedious administrative task. They are a valuable source of data that can help you gain insights into your business performance, optimize your spending, and identify opportunities for growth and innovation. In this article, we will show you how you can leverage expense report data to lead your industry in the context of corporate finance.
Expense report data can help you answer important questions such as: How much are you spending on travel, entertainment, supplies, and other categories? How does your spending compare to your budget, your competitors, and your industry benchmarks? How efficient and compliant is your expense management process? How satisfied and productive are your employees and clients? By analyzing expense report data, you can uncover patterns, trends, anomalies, and best practices that can inform your strategic decisions and improve your bottom line.
Expense report gives an insight to the bottom line of the organization. Are we getting value for money? Why are we spending this much? Is there no better alternative? (without compromising on quality). Is the expenditure in line with approved budget? Once these are understood it leads to operational efficiency and increase the PBIT of the business
Expense report data can also pose some challenges, such as: How do you collect, store, and access expense report data from different sources, formats, and systems? How do you ensure the accuracy, completeness, and consistency of expense report data? How do you protect the privacy and security of expense report data? How do you communicate and visualize expense report data to stakeholders and audiences? To overcome these challenges, you need to invest in the right tools, processes, and skills to manage and analyze expense report data effectively.
To leverage expense report data, you need to use tools that can help you automate, integrate, and streamline your expense management process. For example, you can use cloud-based software that allows you to capture, submit, approve, and reimburse expenses online or via mobile devices. You can also use tools that can connect your expense data with your accounting, payroll, CRM, and other systems. Additionally, you can use tools that can apply artificial intelligence, machine learning, and natural language processing to your expense data to detect fraud, errors, and outliers, as well as generate insights and recommendations.
To leverage expense report data, you also need to follow processes that can help you ensure the quality, reliability, and usability of your expense data. For example, you can implement policies and procedures that define the rules, standards, and workflows for expense reporting and approval. You can also conduct audits and reviews to verify and validate your expense data and identify issues and gaps. Furthermore, you can establish feedback and improvement mechanisms to monitor and measure your expense management performance and outcomes.
To leverage expense report data, you also need to develop skills that can help you interpret, communicate, and apply your expense data. For example, you can learn how to use analytical techniques and methods to explore, summarize, and compare your expense data. You can also learn how to use visualization tools and techniques to create and present clear, compelling, and actionable expense reports and dashboards. Moreover, you can learn how to use storytelling and persuasion skills to convey the value and impact of your expense data to your stakeholders and audiences.
By leveraging expense report data, you can create opportunities for your business to lead your industry. For example, you can use expense data to optimize your spending and allocate your resources more efficiently and effectively. You can also use expense data to enhance your customer and employee satisfaction and loyalty by providing better services and experiences. Additionally, you can use expense data to innovate and differentiate your products and offerings by discovering new markets, trends, and needs.
Aggregated expense report data gives a birds eye view of the spending categories and service providers for the same. It can be used by the procurement team to negotiate deals with providers to extract more value for the spend and garner better pricing.