Overview of Expense Management System
Overview of Expense Management System
Expense Management System is a software tool that manages and monitors expenses kindled by businesses and their employees. It is an automated system that tracks the business related transactions done by the employees and the administration department. Filling out expense reports, dispensing cash for business needs, tracking financial resources and processing reimbursements are few of the functionalities of expense management system.
Expense Management System removes the manual process, promotes paperless transactions and provide businesses with a whole range of sublime features.
Features of Expense Management System
Features of Expense management System keep the outlay of business on track and easily manageable. Here are the top 8 features of an expense management system:-
- Data reports — Filling out expense reports using spreadsheets is time consuming and old school method to keep track of financial resources. Modern day businesses need simple and fast tools to log the expenses incurred on daily, weekly and monthly basis. Expense management system allows businesses with inbuilt and customized reports which give a deeper understanding of expense types and users.
Data reports provide clear and actionable insights about the finance of your business and thus are helpful in deciding the strategies and policies your company should implement. The reports are also great means for curbing unauthorized access and fraud detection
- Mobile access — Significant number of employees work from outside the office, like sales and marketing person and managers travelling for client meetings. The mobile access feature of expense management system allows them to log their expenses from anywhere and anytime. This is an add-on benefit as employees no longer have to submit the reimbursement forms and wait for end of the month to get their claims settled.
Expense management system provides mobile apps as well as web-app-based solution, which can be accessed through any browser. This ensures that the service can be used from any type of device.
- Receipt image uploading — Filling out forms with numerous fields to submit the claims is a tedious task. Expense management system allows the users to attach the receipts of their expense as an image, thus facilitating ease of use. It uses OCR (Optical Character Recognition) to read the relevant fields from the image uploaded, such as receipt number, merchant name, amount of the bill, date of the expense and likewise. This feature allows companies to manage expenses anywhere in real-time.
- Card integration — In today’s digital era all the expenditures are done cashless. People use debit cards, credit cards, corporate cards to make payments. Expense management system allows users to integrate the card they use with the system which greatly reduces the need for data entry. It also allows companies to import the reports of transactions done by the employees using the card, from any card company.
- Single-click expense approvals — There are multiple roles offered by expense management system such as personal, approver, controller, CFO. Each role has designated access to specific functions of the system. The dashboards for different roles are also designed in different formats. Approvers have a dashboard where they can see all the filed expenses pending for approval. The transactions can be selected using a check-box (which allows multiple selection). Then approver can just select the action suitable for that expense; that is she can approve or reject the transaction. The process is very simple and can be completed with a single click.
- Configurable GST and FBT rules — Expense management system not only works with multiple currencies, but it also handles the tax component while expense processing. It allows companies to configure the regulations related to GST (The Goods and Service Tax) and FBT (Fringe Benefit Tax). It uses cloud solutions to integrate the tax regulations, thus providing simplified tax management.
- Email alerts — Expense management system allows users to configure an email ID with their account which will receive alerts and prompts for customized actions. For instance personal users can select to receive an email alert when the expense submitted by them has been approved/rejected. Similarly an approver can set the email alert option whenever a new expense has been submitted and assigned to her for approval.
- Policy enforcement and configuration — Expense management system allows users to customize workflows according to policies defined by the organization. It also lets you configure expense rules by categories, expense types, users, suppliers, claim limits, claim types. It facilitates designing new policies and changing the existing ones based on the data reports thus allowing well-planned strategic financial solutions for the business.
Latest Trends in Expense Management System
Following are the latest trends in Expense Management Systems:-
- BYOD :- Bring Your Own Device is the latest trend followed in every industry. Employees are encouraged to use their personal devices for official work. Many companies have started rolling out policies with regards to the same and employees can track and manage their business related expenses from their personal devices.
- AI :- Artificial intelligence has left no stone unturned. Each and every industry is making use of this technology to reinvent itself and emerge a winner in the technology race. Expense Management system also implements this technology to minimize the manual intervention and speed up the process of managing expenses. All this is lucrative with controls still being in the hands of manual workforce. Advanced machine learning algorithms are used to read the images uploaded by the users thus speeding up the claim process and improving customer experience.
- Cloud-based Expense Management :- Cloud-based expense management system is more reliable than manual process. It is the best solution to tackle the problems related to fraudulent claims. With cloud-based solutions, the process of fraud detection is sped up and an immediate notification is sent to the manager as well as the employee informing the same. Cloud-based system is the latest trend as it increases the efficiency and productivity of the business.
Business Case Studies for Expense Management System
Case Study 1: How Expense Management System brought transparency to a global asset management company
Case Study 2: Read how Expense Management System facilitated cash planning for a consultancy firm dealing with CRM.