What is Automated Expense Management Software? A Comprehensive Guide

What is Automated Expense Management Software? A Comprehensive Guide

Every company needs to track their ongoing expenses. For that, they utilize the best automated expense management software . The software automates the entire procedure from expense reporting to reimbursing. Thus, eliminating the need for the finance team to do any mundane task. Equipped with GPS technology, it enables field managers to track their field employees’ movements, along with the expenses incurred.?

By simply leveraging the software, field managers can?

  • Track employees’ spending
  • Categorize expenses
  • Reimburse employees for any cost they made during their working hours.?

Here is more on expense management software and how it helps minimize the risks of fraud or maverick spending. So, dive deep and learn.

Why do Businesses Automate Expense Management?

Almost 10% of a company’s budget goes to travel. So, if that 10% of expense is processed with a poor expense management process, businesses can be negatively impacted. Also, manual and repetitive methods lift the chance of discrepancies while recording, calculating, and reimbursing expenses. This may lead to disturbed workflow and under-optimized processes.

Even the GBTA survey of 533 managers articulates that manual expense management is prone to errors and time-consuming. Here is what they conclude in their reports.

  • It costs $58 to process an expense report
  • 19% of reports contain errors
  • It takes 20 minutes to finish one expense report.
  • Rectifying expense reports takes 18 minutes.

All these articulate the challenges associated with the traditional expense management process. But, guess what? You can overcome these challenges like a pro with expense management automation.

Potential Benefits of Using Expense Management Solutions

A robust expense management software comes with robust features and capabilities that let you achieve the significant benefits provided below:?

  • Quick Evidence Upload

Employees on the move can seamlessly upload expense evidence like invoices, bills, etc. for managers to assess them with just a few clicks. This ensures that no expense goes untracked and helps managers make every expense count and recorded.?

  • Expense Categorization?

The expense management software comes with expense categorization that lets managers place expenses of the same group in specific categories like mileage, food, travel, miscellaneous, etc. This also helps managers access expenses in a jiffy in an emergency.?

  • Enhanced Expense Visibility

Expense management software utilizes the GPS technology that helps managers easily track and get real-time insight into employees and their expenses. Moreover, some software solutions like TrackoField come with distance traveled reports too that let managers assess the vitality of expenses incurred by assessing the miles covered by employees during their working hours.?

  • Reduced Delays and Errors

As every end-to-end expense management process gets automated, simplified, and streamlined, there are reduced errors and delays in the overall workflow. That means, managers no longer get tormented with errors and discrepancies related to expense management. Therein, they quickly reimburse employees and enjoy faster employee reimbursement.?

  • Cut Processing Costs and Time

With automated expense management software in place, managers eradicate the need of papers. So the cost associated with employees contending with hard copies gets reduced. Additionally, tasks like manually matching amounts, searching for receipts, and accumulating bills/invoices go to minimal. Accounting departments can seamlessly run reimbursement instead of waiting for that last hard copy expense reports.??

  • Mitigated Expense Fraud

In a lot more ways, expense management software helps in mitigating expense fraud. For instance, its attachment feature enables employees to upload the bills of the restaurant, mileage, etc., on the software. Managers assess these bills against the distance traveled reports generated by the software, providing visibility on employees’ movements during their working hours. With these two essential features, managers easily mitigate expense fraud.?

  • Better Cost Control

Besides all these benefits provided below, the expense management software also helps in controlling expenses. It lets managers provide a cap on expenditure that represents a significant amount employees cannot spend beyond. The cap can be according to unique business objectives and goals. This way businesses ensure better cost control.?

Read Also: Benefits of Cloud-based Expense Management Software

  • Improved Cash Flow

Another interesting thing about the expense management software is its report generation. Managers by simply accessing the software can generate expense reports anytime anywhere. This way they analyze all metrics and KPIs related to business expenses and consequently, make further decisions for enhancing cash flow.?

  • Seamless Payroll Integration?

A good expense management system gets seamlessly integrated with your existing or new payroll management system to auto-compile, calculate, and reimburse the total expenses to each team member swiftly.

  • Enhanced Overall Operational Efficiency

With expense management software in place, both managers and employees automate mundane, traditional, and repetitive tasks. Therein, they get more time to invest in business-driven activities. This positively increases efficiency in the finance department and across the organization.?

Final Thoughts!

So, this is all about the expense management software solutions and how they prevent the higher risk of misinterpretation with automation and accurate expense reporting. If you also want to leverage the best-in-class expense management software to manage all your business expenses on a single platform, sign up to use TrackoField for free.?

TrackoField assures to modify the overall field operations with significant modules other than expense management software such as:??

Try out this software for free and learn about its performance and capabilities by yourself.?

Source: What is Automated Expense Management Software?


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