The future of invoice and expense management is intelligent

Did you know that the concept of?invoices?existed thousands of years ago in Mesopotamia? Back then, the people of southern Mesopotamia developed a form of writing known as cuneiform, which was used to record transactions using damp clay tablets. It was believed to have been invented to help keep track of agricultural produce and its byproducts being sent out and received.

Overtime, invoices for various purposes, including those for trade transactions and other exchanges, have continued to evolve. The first professional invoice was developed by Graham Brother Distillers in 1904. Computer-generated invoices came decades after.?

We have come a long way since then.?

In the world where time is money — automating tedious and mundane tasks must be every business’ top priority. Invoice and expense (T&E) management are two areas that are ripe for change.

Meeting users where they are

After a long trip, the last thing that anyone wants to do is to spend time doing the tedious task of an expense report. After all, sorting and scanning receipts, categorizing expenses, and submitting paperwork for approval can take a substantial amount of time away from our ‘day jobs’, especially for those of us who are frequent travelers.?

From a company’s perspective, as businesses expand to different geographies and new teams are formed, there is the mundane but important task of ensuring proper policies and procedures are being implemented and followed regardless of locations. Having a standardized and streamlined process can help to reduce turnaround time and operational costs while keeping users happy.

With the proper digital infrastructure, companies can now deploy smart mobile solutions for their employees to help them keep track of their spending automatically, all while keeping errors and manual work to a minimum. Receipts can be captured automatically via the mobile app and itemized for expense report submission with smartphones on-the-go. By leveraging artificial intelligence (AI) and machine learning, such intelligent technology solutions can automatically check expense reports for duplicates or errors and ensure policies are followed, reducing the need for human interventions and approvals. This results in a simpler, less error-prone process that is also less labor-intensive, enabling expenses to be reimbursed in more timely manner.

Speed and simplicity are especially beneficial for company-wide policy changes. In the past few years, as remote work becomes more common, businesses have instituted more formal reimbursement guidelines for home office expenses such as subscriptions for high-speed internet services. As work arrangements continue to evolve over time, these rules will need to be updated accordingly. A future-ready intelligent T&E solution can help organizations meet changing needs quickly in a cost effective and scalable manner —?by leveraging and analyzing data from spending pattern, facilitating timely crucial business decision-making. Policy changes can be put in place and enforced at scale for high transaction volumes, without having to contend with time-consuming manual workarounds.?

Beyond process efficiency and productivity improvements, an integrated and AI-driven T&E solution can help companies better control costs and cash flow while adapting to changes in the business environment. This is especially crucial when nearly two-thirds (61%) of finance leaders indicate that they don’t have enough visibility into near-real-time spend data, which causes further stress on budgets when resources are constrained.?

Having centralized digital records on an integrated expense platform can also enable companies to collate the necessary data and generate reports to satisfy varying requirements, providing greater visibility on global spend. As more businesses begin to incorporate sustainability as one of their operating goals, having digital tools that can provide holistic tracking and reporting on sustainable travel options and carbon footprint can go a long way in motivating employees to become advocates for ushering in a more sustainable future. Visibility into these metrics can also help company leaders demonstrate their commitment to sustainability as a corporate priority.?

“There are substantial mid- and long-term costs when not running a company intelligently and sustainably —?especially given resource limitations. CFOs have to make decisions that add value to the brand and the environment in which the business operates.” —?Brian Vance, Chief Operating Officer and Vice President of Market Assessment and Planning at SAP Concur?

Streamlining money movement

Similar gains on efficiency and governance can be achieved with invoice management. Imagine automating the end-to-end process, from invoice data capture and validation to invoice matching with existing purchase orders, and routing for approval and payment. Not only is the workflow more efficient and input more accurate when compared to manual data entry and processing, managers can approve invoices anytime and anywhere, and gain greater visibility into the cash flow, enabling more accurate and timely financial forecasts.

Releasing payments on time can also help businesses avoid potential fees or other penalties that may be incurred when invoice processing is delayed. Going one step further, some suppliers may even encourage early payment with incentives. Beyond helping businesses get paid faster, an automated system can provide accurate and up-to-date financial records and audit trails, help reconcile invoices with contracts, and improve stakeholder communication and satisfaction along the way. Gone are the days where it can take days to review, enter, and route paper invoices manually.

Beyond digital: The future is intelligent?

With continued economic uncertainties, companies are actively seeking ways to become more efficient in their day-to-day operations, and to meet employees and suppliers where they are. Instead of spending time chasing after paperwork and emails and leaving money on the table, the time is now to become a future-ready business.?

• An intelligent T&E and invoice management platform can give you full transparency into your near real-time spend data, enabling you to deliver timely and actionable insights to the business.
• Integration with existing finance, accounting, and ERP systems can help you see the entire spend process and data, providing you with the visibility to make faster and better-informed decisions.?
• Working with trusted organizations with an expansive partner ecosystem who understands the complex and varying needs of operating domestically and internationally can help you navigate the changing business environments while preparing for future growth.

In the next blog, we will look at the future state of?T&E ?and?invoice ?management, how emerging technologies can deliver more value to the business, and the role that AI will play.

This post was sponsored by SAP Concur. But the opinions are my own and don’t necessarily represent SAP Concur’s positions or strategies.

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