Expense management is an essential but frustrating process for businesses of all sizes. From managing receipts and expenses efficiently to keeping your budget in check and providing you with data-backed analytics, an expense management system keeps your books clean.
According to an estimate, corporate travel expenses worldwide amounted to $1.3 trillion in 2017. Four years down the line, it is safe to conclude that this figure has only gone up.
This is why it makes sense to invest in a smart and advanced expense management software that meets employees’ growing needs and provides your finance department with a reliable solution.
To make your work easier, we have listed some essential steps to find and implement the best and most suitable expense management system for your business.
Evaluate your existing expense management system
If you already have an expense management system in place but are unhappy with it due to any reason whatsoever, here are a few things you might like to verify:
If you are only subscribed to your current software through a monthly subscription plan, you must decide if you want to wait till the current subscription lasts or stop using the system right away and bear the loss of the subscription fee already paid.
Some software providers have a policy of refunding the advance subscription amount if you discontinue using their system at any point, so do check that with your vendor.
Before switching to new software, analyze the shortcomings of the existing software, and make a list of the features you would like to see in your new expense management software.
Shortlist the right expense management software for your business
Once you have sorted out how and when you’ll discontinue your existing software, it’s time to prepare a list of new and better options. Online searches can propose an array of expense management software, but you need to know more than just their names.
Analyze the prevalent expense management software in your industry and check their reviews on business software review websites like G2, Capterra, TechRadar, etc.
Reach out to different software providers and ask them if they offer a demo version. Demos are an excellent method of trying a software hands-on before spending money on it.
If a particular software doesn’t have a demo version, it’s better to avoid it or keep it low in your shortlist. After you’ve tried out the demo for a few systems, you’ll know which ones offer the solutions you are looking for.
Involve all important stakeholders in the decision-making process
Include the all important stakeholders when trying out the demo for various software. Collect their feedback on every system and gather any valuable inputs they might have to offer.
Based on their response and your own experience, choose a system that promises to be better than the rest for your business. Even as you make your final decision, keep a few other alternatives in consideration as well.
Keep The Transition Smooth
The transition from your current software to a better one should be as smooth as possible. It shouldn’t interfere with the daily expense management operations.
Ensure that your chosen expense management software comes with no-training ease of use. This helps reduce resistance to software adoption in the company and helps employees submit receipts more readily.
Next, your expense management software should be able to automate your existing process as it is, eliminating inefficiencies.
The software is supposed to solve expense management for both employees and Finance teams alike, not add to their workload. Ideally, your expense software will come in a plug and play ease.
Things To Look For In An Expense Management System
A good expense management system is one that can take care of these three things efficiently:
- Make the process of expense management faster, from the moment an employee raises a compensation request until they are paid in full.
- Use an accurate and reliable process to verify employees’ claims and check that the expenses are entitled to reimbursement as per the company’s policies.
- Properly sort and record all the expenses that have been reimbursed, and make them easily accessible for financial and audit purposes.
An expense management system is an essential part of your business’s finances. An efficient software that meets your business’s demand will ensure that all employees who bear legitimate expenses on the company’s behalf get compensated on time.
It keeps your employees’ morale high and supports the process running smoothly with little effort on your part. As mentioned above, we are certain that the steps will help you find and implement an efficient expense management system for your business.