Managers have a lot on their minds, so when important yet tedious tasks like expense management can be automated, they take note. Are you still managing employee expenses in excel? In a ledger? By chiseling figures into stones? These antiquated systems are holding you back. Inefficient expense management negatively impacts productivity, not to mention employee morale and, ultimately, your bottom line. It’s time for an upgrade!
Expense management software makes it easier for employees to report expenses and managers to approve them. They can apply the saved time and energy to where its most needed: helping the business grow and succeed. Here, we’ll get you on the right track for improving the efficiency and efficacy of your expense administration process.
- Why is Expense Management Important?
- What are Employee Expense Management Solutions?
- Capabilities of Expense Management Software
- Finding a Software That Does it All
- Maximize Efficiency From Your Phone
They say you have to spend money in order to make money. As a business grows, it incurs all kinds of costs. Employees may win new clients over nice dinners. Businesses may send representatives to trade shows to expand their market. Employees may attend workshops to level-up their skills. These activities are vital for a business’s ongoing success, but managing all the expenses can be more complicated than it first appears.
If an employee goes to an out-of-state trade show, for example, employers won’t just need to pay the entrance fees. They’ll probably also need to pay transportation, hotel, and meal costs, as well as any unforeseen expense which may arise. This can quickly turn into a big job!
Efficient expense management helps businesses to track expenses and make sure they are compliant with IRS policies. Transparency around expense admin can also help to boost employee morale. Expense management keeps things moving forward.
What Are Employee Expense Management Solutions?
Proactive managers value their time. They don’t want to get bogged down using antiquated expense management systems! Managing expenses by manually inputting numbers in excel spreadsheets can get old, fast. Receipts kept in filing cabinets are liable to disappear. Reimbursement requests missing important information may need to be submitted again and again– exhausting both employees and managers.
Don’t worry! There is an employee expense management solution: expense management software can streamline and simplify the process.
What is expense management software? In short, it is a digital platform that allows employees to manage and report their expenses. The software automatically ensures reimbursement requests are compliant with company policy. Employers are able to review and approve the requests on their own time.
An expense manager may seem like a big investment, but it is likely to show a big ROI. It will save employees time when it comes to organizing and submitting their requests and manager’s time when reviewing requests. It minimizes opportunities for pesky human error and keeps important documents and receipts from getting lost. Most importantly, remember that more straightforward admin processes keep everyone a little saner.
Upholds Travel and Expense Policies
Managers can input company travel and expense policies directly into the expense manager. They have the opportunity to create custom labels for employees to apply to their expenses. For example, an employee can file a client dinner under “food,” and the taxi from the airport under “transportation.” This will make it easier for managers to review and get a sense of how the business is spending. Other kinds of labels will make it possible to track expenses by project or by employee. That means managers can better enforce project budgets and other expense policies.
Tracks and Centralizes Expenses
Rather than collecting the physical receipt and filing it away, employees can upload their receipts digitally with expense management software. They can even upload with their phone directly from the restaurant! This means no more illegible crumpled up receipts and no more mislaid invoices. Everything will be accessible through the software, so both employee and manager can review costs and track the progress of reimbursement requests at any time. Additionally, digitalized, centralized filing means more comprehensive records. This not only protects the company and limits liability but also leads to increased transparency– a big win with employees.
Streamlines Expense Report Approval
Submitting digital reimbursement requests speeds up the expense report approval process. Administrators can review requests at one time in one place. No more toggling between different platforms, and electronic and physical documents. Everything they need to approve the request or ask for more information should already be present in a single software. They will receive notifications when new requests are submitted and can create automated workflows for the approval process. Speedy handling of requests will settle accounts efficiently and leave more time for managers and employees to deal with more pressing problems.
It is important to remember that not all expense management tools are made equal. Expense management software for small businesses needs to be as efficient as possible. When investing in expense management software, you need to find something that fits well with the needs of your specific business. And, as long as you’re paying for something, make sure you get the most bang for your buck.
This is why it might be wise for your business not to invest in a basic expense manager, such as Expensify, Zoho, Quickbooks, or ABacus. These tools will get you only the bare minimum. A more comprehensive HR system such as Factorial’s will offer streamlined expense management integrated with all the other facets of HR administration. Don’t toggle between different platforms managing different parts of your business! Instead, make things easy on yourself by keeping everything in one place.
Factorial complements its efficient expense manager with a suite of other capabilities that set it apart.
If you’re not convinced, take a look at how we stand up against another expense management system – Concur VS. Factorial
Generate Custom Reports
Managers can use the data acquired through their expense manager to build custom reports detailing expenditures by project, by an employee, or by time period. They can use this data to drive more strategic decision-making. Additionally, they can generate reports about time off, employee performance, and productivity.
Centralized Document Manager
With a document manager, managers can make important documents easily accessible for employees. Files containing information about expense policies can be reviewed at any time.
Managing Hours and Time Off
While employees are at that out-of-town trade show, tracking hours might get tricky. With Factorial, employees can clock in and out from anywhere thanks to holiday leaves software. Employers can also track compensatory time off to stay in compliance with federal and local legislation.
To sum up: stop living in the past! Take your expense management online with software with will streamline your processes and maximize efficiency. With Factorial’s expense management app, employees will be able to submit requests from anywhere and managers will be able to approve them with less hassle. Employee expense management has never been easier, so now is the time to make a change.
Written by Valerie Slaughter