Expense Management Automation: Streamline Budgeting & Increase Efficiency

  • February 16, 2023
  • gmahoney
George Mahoney
Chief Financial Officer, SMB Finance Expert

George Mahoney is a seasoned expert with extensive experience in financial management for field services, construction, and real estate companies. Known for his strategic financial planning and expertise in optimizing operational efficiencies, George has consistently driven profitability throughout his career.

Do you dread having to sort through receipts and invoices every month, trying to make sure your business expenses are tracked effectively? If so, automation is the answer to making that task a lot easier. Expense management automation can help streamline the cumbersome process of manually managing expenses and free up more time for your team while still keeping accurate expense data.

 In this blog post, we’ll discuss expense management automation, how it works, and why you should consider taking advantage of it for your business’s finances. Keep reading to learn more!

Expense Management Automation – What Is It?

Expense management automation is a powerful way to give businesses greater control over their employee expenses, including the creation of accurate expense reports. Not only does it help create cost savings through automated tracking and reporting, but it also allows companies to ensure that they remain compliant with corporate policy while still authorizing reimbursements quickly and accurately. 

Additionally, businesses can gain insights into spending trends by using the software’s analytical tools, helping them make more informed decisions about the best way to allocate their spending. Expense management automation truly gives businesses an edge when it comes to managing employee expenses and generating expense reports.

Why is Automated Expense Management Important?

Automating expense management is a wise business decision that yields powerful cost savings, record expenses, and improved efficiencies that contribute to business growth. By leaving manual processes behind and investing in the right automated expense management systems, companies can reduce the time and money it takes to process expense reports while streamlining their entire expense reporting process.

 This provides employees and their managers with an easy-to-use, efficient tool for tracking and submitting expenses, removing any complexity or frustration from experience. As if that weren’t enough of a benefit, automated expense management systems also ensure accuracy by eliminating unnecessary processing steps, reducing human errors, and avoiding duplication of work – all critical components for a successful modern workplace.

How to Process an Employee Expense Report in 11 Steps?

  1. Employees collect paper receipts for their incurred expenses.
  2. They keep track of these receipts monthly or quarterly in a spreadsheet-based expenditure report.
  3. Their supervisor and the accounting or finance department evaluate the report.
  4. It is sent to relevant approvers (senior executives and managers) for evaluation.
  5. Any rejected expenditures are returned to the employee and accounting team for additional adjustment and review.
  6. The report is forwarded to the accounts payable coordinator for posting and payment processing authorization.
  7. All submitted receipts are verified as legitimate business purchases or services rendered by the employee in question.
  8.  Records of all receipts are kept in the file for tax and accounting purposes. Before proceeding with the expense report, the accounting team must ensure that the correct tax codes are entered into it.
  9. The expense report is stored in the company’s accounting system or ERP software to be audited and archived.
  10. Lastly, depending on the original payment method, reimbursement will be authorized and sent to either the employee or credit card provider.
Automation of Expense Management

Difference Between Traditional and Automated Expense Management

The traditional expense management process involves manual data entry, and paperwork or spreadsheet-based systems can often put a strain on time and resources, as the process of paperwork and spreadsheet-based systems can be laborious. But with the introduction of automated expense management, companies have set themselves up for streamlined success and increased efficiency. 

By automating expenses in the report submission process, businesses may get rid of paper and minimize mistakes and potential fraud cases while enabling faster employee reimbursements. With such a revolutionary technology now at our fingertips, traditional methods seem useless; it’s no wonder most companies are turning from manual expense management to this new era of automated expense management!

Advantages of Automated Expense Management

Lesser Errors

A manual expense management system may often seem like the most economical option, but the Global Business Travel Association claims it raises the potential for mistakes. 19% of all submitted expense reports contain errors. 

However, by utilizing an automated expense management system, data entry is removed from the equation, significantly reducing the chances of errors being made and providing significant cost savings. It’s a win-win for anyone who manages expenses!

Satisfied Employees

Late reimbursements can take the joy out of the workplace for the employee and the company. When employees have to enter expense reports manually, and their financial woes are not addressed in time, they feel undervalued and taken for granted.

 With timely reimbursements, employees get renewed confidence as they know that their employer cares about their work and values their financial needs. This gives them added motivation to strive hard and contribute better, resulting in a more positive atmosphere at the workplace. On-time reimbursement is a simple yet effective way to make your workforce happy!

Increased Productivity

Enhancing productivity in the workplace doesn’t need to be complicated – the secret lies in happier employees and their spending habits. Easy-to-use expense management processes mean no precious hours wasted on laborious logging and preparing expense reports. 

Instead, this time can be used for more important tasks, which will help organizations reach their goals faster. Automation also makes a huge difference in monitoring employee spending habits: expenses are checked and processed more quickly, meaning more employee and finance manager productivity gains. It’s no wonder many companies are investing in automated expense management software to help control and optimize spending habits!

Monitor Purchases

Keeping an eye on your organization’s spending has never been easier with automated expense report management. With real-time visibility over spending, you can monitor purchases throughout the entire business or choose to focus on individual employees.

 This helps ensure you are staying within your allotted budget while providing the insight you need to make informed decisions quickly and easily. Get the big picture and stay in control of those expenses with automated expense management today!

No More Expense Requests and Approvals

Imagine a revolutionized way to manage expenses! With faster expense requests and approvals, managers now have the power to reduce time-consuming paperwork and spreadsheets by utilizing expense management automation. There’s no longer any waiting for approval or delay after you submit your request—everything is handled quickly and efficiently in one automated platform. 

This groundbreaking system will give you more time to focus on the things that matter rather than getting bogged down with tedious administrative tasks. It sounds like a dream come true, doesn’t it?

Automated Expense Management Solutions Features

User-Friendly

Have you been searching for an automated expense management solution but have encountered cumbersome tools with complex interfaces? Looking for a solution that doesn’t take months to set up and requires a full-time team member to use? 

We’ve got the perfect solution for you! An easy-to-use option that is hassle-free, saves time and energy, and offers amazing features. It’s time to switch to something easier, more user-friendly, and more efficient!

Scalable

From cost savings to user-friendly features, a scalable, automated expense management solution can give your business the flexibility it needs to stay competitive and successful. Rather than sticking with the same system no matter what, you can add features and users as needed; with the right scalable solution, you can even unbind yourself from unnecessary investments in outdated processes. With scalability as a cornerstone of your business operations, you’re free to achieve growth that would otherwise be impossible!

Automatic Information Extraction

Automated solutions for data extraction are revolutionizing expense processing for businesses of all sizes. Gone are the days when manually sifting through line items, digits, and decimal points consumed excess time. With automatic data extraction, costs, tips, taxes, and other financial information can be withdrawn quickly. 

What was once an arduous job is now easy – freeing up more time for business owners to build their customer base and expand their profits creatively. Automated data extraction tools help streamline operations through powerful insights into your finances – so you can focus on bigger and better things!

Different Permission Levels

Automated expense management software offers owners the ultimate workflow control over their team spending. Thanks to different permission levels, it’s possible to designate team managers with the ability to approve or reject expense requests from their assigned employees. 

That means owners no longer need to spend valuable time reviewing every single request; instead, an experienced manager can organize and supervise the process for them. Maintaining a finely tuned financial infrastructure within your organization has never been easier.

Make Timely Requests and Approvals With a Built-in Dashboard

Built-in dashboards make business easier, allowing users to make timely requests and approvals based on their designation. Administrators and finance managers can view and approve requests quickly – why worry about delays in approval when you don’t have to? With the convenience of these solutions, life is made much simpler for everyone involved, and it helps reduce the risk of expense fraud.

 Accounting Integrations

When it comes to managing expenses, automating the process can help streamline and simplify your workload. Automated expense management solutions provide time-saving features, such as direct integrations into the company’s financial or accounting systems.

 You don’t need to worry about manually copying and pasting information – the direct integration capabilities will eliminate any tedious manual work that could otherwise be an investment of time. The system works just like you want it to, helping you save even more time so you can focus on other vital aspects of running a successful business.

Expense Proofs 

As far as businesses are concerned, the best way to ensure you’re staying in compliance with internal and external regulations is to make sure that your expense proofs are accurate and readily available. Automated software makes this a breeze!

 Not only does it document any valid sales or purchases, but it also allows you to locate these important records quickly should an audit come around. Having documented expense proofs saves you time and money and gives you peace of mind knowing all your financials are recorded correctly and securely.

Data Reports

Expense management is often one of the most challenging and time-consuming business tasks. With automated expense management solutions, companies can make managing their expenses easier and more efficient. Automated expense management pulls data from financial systems into a central repository, optimizing workflow and providing greater insight into spending and budgeting. 

These solutions allow for intuitive data reports that give insightful visuals to identify patterns in company spending and other financial trends. The automation also produces real-time updates for direct feedback on expenditures as well as long-term plans for better budgeting control. Companies that make use of automated expense management can spend less time worrying about tracking expenses and maximize their efforts in other areas of their business!

Picking the Best Software for Automated Expense Management

Flexibility

Finding the right automated solution for your company can seem like a daunting task. However, it is essential to seek out a tool that offers flexibility. Having the ability to customize cards and tailor the product based on the specific needs of your business is an invaluable asset that should not be overlooked.

 The flexible software allows you to take ownership of the project, making it easier for everyone to stay on the same page. Not only does this create a higher level of efficiency and productivity, but it also allows you to set boundaries you can be sure to stick to.

Safety

Keeping your company’s money secure should be a top priority, especially when dealing with multiple daily expenses. Fortunately, there is now an automated expense management solution that promises to provide full-time security for your expense processes and ensure that your money is safe. 

With this software, you can rest easy knowing that your financial data is well-protected and tracked in real time, so you’ll never be in the dark. Get peace of mind today, and make sure your company remains secure at all times!

Straightforward Integration

If you’re looking for the perfect automation solution, seamless integration with your system is a must. If it’s not easy to use and implement, it’s likely not worth learning or investing in. But when you find an automated system designed for a straightforward integration, that’s a game changer! 

Making the switch to automated processes could be as simple as unplugging one system and plugging in the other – no complicated tweaking required. In short, if you’re looking for an automaton solution with integrated ease of use, you owe it to yourself to look into easy integration solutions.

Real-Time Look Over

Ensuring cost savings and fraud prevention is made easy with automated expense tracking systems. But the key is to find a solution that works for your company. Make sure it offers flexibility and security and eliminates paper consumption. Look for one that has customization options so you can track, record and oversee budget expenses in real time. 

You’ll also be able to build in requirements that fit your business needs best, resulting in smarter financial decision-making overall. Make sure you choose the right expense management software and enjoy all the benefits of time-saving and cost controls!

Conclusion

Managing expenses is a critical part of every business, but it doesn’t have to be difficult. With expense management automation, you can streamline the process and save time and money. Automate expense management software includes features like automated expense report creation, managed expense reports, and approval, so you can get back to running your business. Follow us for more updates on how you can automate your expense management process.

Frequently Asked Questions

What is the expense management process?

Managing expenses can be a key component of maintaining a successful business. If you’re looking to boost efficiency, streamline processes and save time, implementing an effective expense management process is the way to go. This process involves introducing users to techniques that help navigate their spending requests in order to identify and organize expenses accurately.

 These steps make it easier for companies and employees to coordinate financial responsibilities like record-keeping, tracking costs, and meeting deadlines for filing expense reports. Implementing an expense management process doesn’t have to be exhausting – rather than tediously entering data into an outdated system, adding technological tools and software can help manage the process from beginning to end.

What are the three basic types of expenses?

When you become serious about taking control of your financial future, understanding the three basic types of expenses can help you create a budget that fits your lifestyle and long-term savings goals. Fixed costs are necessary, and regular payments you make throughout the year, such as rent or mortgage payments, car loans, or insurance payments. 

Savings expenses are money that should be saved in advance for items like appliances, taxes, or vacations. Finally, variable costs require some tradeoffs as they vary from month to month and include categories such as entertainment, dining out, and clothing. Learning how to manage these three expense categories properly is a key element when it comes to budgeting your money and planning for the future.

What are a company’s 3 biggest expenses?

Finding ways to reduce business expenses can be a game-changer for small and large operations. There are five main types of expenditure that take up the lion’s share of any company’s budget: Staff, physical location, capital equipment, development costs, and Cost of Goods Sold (inventory). 

By utilizing strategies like outsourcing tasks you don’t need full-time staff for or negotiating prices on long-term equipment purchases, businesses can make smarter decisions in their use of funds. The impact on your company’s profit margins quickly becomes apparent as your accepted expenses shrink.