At larger companies especially, the expense management system is something that affects everyone within the business, from the CEO to human resources to the individual employees. There are several benefits that come from implementing expense software company wide. The return on investment (ROI) is a very important consideration for any purchase within a business. Ideally you always want the smallest initial investment to result in the largest gains for your company and an automated expense management system can fit that bill. An automated expense management system can provide a 100% return on investment in as little as a few months, depending on how large a part of the human resources department is required to work on expenses.
Rapid implementation is another great benefit of having an automated spend management software run outside of the company. Since they specialize in implementing these types of services, usually a customized expense management system can be up and running within a week. Redirecting management’s time to more productive activities is an excellent benefit of automated expense management systems. If the human resources manager had to split their time between regular tasks and sorting through expense reports, that time can now be redirected and the manager would only be notified when there was some expense policy breach or an exceptionally large expense claim. The automated system can also reduce errors that often occur during the expense management process. For example, duplicate claims or wrong payment methods can be flagged so that these items can be easily corrected and moved on for approval.
The ability to have reports readily available that allow management to make financial decisions is an essential feature of several spend management strategies. Having accurate information regarding the company’s expenses can also help the accounting department to better keep track of funds and suggest future budgets. Analysis tools can give detailed information on spending that can in turn lead to cost-saving measures and perhaps changes in the expenses that employees can report. This type of analysis can also help to detect any fraud that may be going on within the expense reporting. Fraud can quickly be rooted out and the proper disciplinary actions can be taken.
Spend management software systems also bring a new level of transparency to the process. Fraud is a very serious problem and most companies have certain fairly strict policies in place to ensure that expense account fraud does not go unnoticed. An automated expense management system can run any expense report against this list of policies to make sure that the claim is legitimate. Awareness within the company of the lack of tolerance for outrageous expense claims can help employees to police themselves. For most companies, mileage expenses are the most common item that expense reports are filed for. Some automated expense management systems have mileage calculators built in to ensure that mileage claims do not become too excessive. With the many benefits of automated expense management systems, investing in one for your company can prove to be a truly beneficial proposition.