Managing money matters has never been easy. Any business, be it large scale or small business, cannot run efficiently if the flow of money is not appropriate or smooth. In such cases, the decision-maker is in constant conflict between where to cut down and where to spend. Erroneous expense management is one of the primary key areas that can screw up things for any stakeholder/businessman.
When it comes to large scale business, the collaboration of different departments and their operations lead to a successful business. Usually, the Accounts/Finance department attends to the organization’s expenditures in terms of business-related activities. However, they are prone to mistakes. And these mistakes are going to make you lose money. When such is the case, structured expense management is all you need.
What is Expense Management? – Expense Management Features
An expense management process is used to help businesses streamline their expenditures. It is the sequential flow through which claims for reimbursements and records for employees’ business expenses are processed within the industry.
Expense management in any organization comprises of two key elements:
- To track the spending behavior of its employees
- To pay for the costs incurred
These costs usually include employee travel, accommodation, etc. of an employee on an official visit for any assigned tasks. It contains the policies that govern the spending for any business. Not only that, but it also includes the technologies and services utilized to process and analyze the data associated with the expenditures.
Significance of Expense Management
A growing business regularly incurs costs and expenses to keep the wheels rolling. The utility of these essential expenses is to maintain and expand a company’s operations and production. As a company grows, the quantum of costs & spenders grows too. Not only the investors but the employees also incur personal charges to keep the business running. The business owes these costs to its employees. It is also responsible for repaying the employees as soon as possible with minimal efforts.
Effective expense management helps the organization align the overall expenses with the rules of compliance and enhance employee experience, thereby increasing the organization’s overall financial productivity. It’s one of the best software to establish your Dubai Business.
The Need for Expense Management Software in Dubai
Over the last few years, expense management involved stashing papers – bills & receipts, multiple record sheets containing claims, and tedious procedures of validating the claims and approving the submitted expense reports.
Such a process exhausts the employees of the Accounts/Finance department instead of taking up progressive tasks. Although exercising a traditional means to manage the expenses may seem feasible for start-ups or organizations with a limited number of employees, but eventually, this could prove detrimental to a growing business.
Expense Management Process
The Expense Management for a business involves three steps:
- To process the reimbursement requests.
- Pay the requested amount after approval by managers or designated professionals.
- Audit the business expenses along with maintaining proper records.
Reimbursing business-related expenses also involves many unnecessary issues and risks of tackling physical receipts & their verifications manually, prone to fraud and errors. The inefficiency of long-established expense management further weakens employee morale as well as financial productivity.
Keeping pace with the trends is crucial for growth!
In the growth stage, the company needs to spend a substantial amount on networking and sales purposes, wherein the employees are required to travel to aid the expansion of the business. Some of the plausible drawbacks of holding onto archaic mode for Expense Management are:
1. Not a Time Saver
Manual expense reporting processes of the records and verification for approvals cost a considerable time for the company’s finance/Accountant department. An automated Expense Management software for small business would aid in utilizing that time in exploring new strategies for growth.
2. More Prone to Human Error
Any human error or human bias invalidating claims or incorrect data entered may result in a business losing a lot of money. On the other hand, Expense Management software helps to avoid such errors.
3. Fraudulent Claims
Duplicacy of bills or exaggerated claims by the employees in manual systems might raise fraud chances with the company. An Expense Management software that tracks the spending of the employees is useful to avoid mishaps like unrecognized fraud.
4. Less Visibility into Trends of Expenses
Due to the unavailability of the appropriate or necessary information, the managers’ cases of ill-informed decisions might be a concern. An Expense Management software with centralized data would be easily accessible to all the employees providing them with accurate information.
5. Less Productivity and Efficiency
Reporting, claiming, and validating expenses, when undertaken manually, usually consumes excessive time resulting in less productivity and efficiency. An automatic Expense Management software would reduce the workload of data entry and manage records, thereby elevating the employees’ productivity.
Expense Management software in UAE – A brief!
An application, best app for expense tracking, and to manage the business expenses for the employees is known as Expense Management software. An automated Expense Management software can streamline every aspect of expense management to minimize the risks associated with conventional expense management.
It enables a business to receive business expense policy from its employees regarding the reimbursement process. Furthermore, it checks these expense reports for policy violations and helps to verify & validate before reimbursing them. The elimination of manual submission procedures and saving time would have a considerable difference for the teams involved in manual processes.
Expense Management Software – Its Technological Impact!
In today’s fast-paced world, time is invaluable for any business. Most businesses are automating every possible task to elevate productivity.
- Not only does the automated expense management software eliminate the risks, but it also eases out the entire process, thereby decreasing the unnecessary manual work for a company.
- Employees can directly upload images of receipts or bills, which are stored for records. The employees can then generate a report regarding their spendings in a short duration of time.
- In case of any inconsistency or policy violation, both the employers and the employees can receive alerts about the same. After that, employees can provide detailed explanations, which can be presented to the admins to either approve or reject the particular expense sheet.
- Employers/Finance teams are not required to shuffle through hoards of emails for such explanations. The related documents are centralized and easily accessible to all.
Undoubtedly, such expense management software makes your life much easier. Bizhrs is one such software that understands all the chaos caused due to money matters and is here to assist you with all the expense management.
Why should one opt for Bizhrs?
Bizhrs is one of the most trustworthy software when it comes to expense management. The features it provides makes your account management an easy job, regardless of the number of employees or clients you have. Some other features of Bizhrs include:
- Employers and employees can track the expenses through an automated Expense Management software and store them centrally, categorizing them based on the related reasons and details.
- Employers can gain insight into spending trends as per the business’s growth stage by using past data statistics and going through the analytics reports in the Expense Management software. This helps finance teams to make well-informed business decisions.
- The business owners and their finance teams can customize policies and approval workflows as per their business requirements and store them on the Expense Management software to be well aware beforehand.
- This technology proves to be cost-saving and rescues the chances of errors by 99 %, making it the most trustable software. Any user can customize it as per his/her requirements.
- The network security team protects the most confidential data from the most sophisticated malware electronic attack. The multicurrency feature also helps you connect financially to the employees around the globe.
The Bottom Line
An automated Expense Management software helps to ease out the process of expense tracking as well as expense reporting for a business. Moreover, it also proves to be more efficient with finance teams to record and manage business expenses for accounting. In this technological era of automation, an automated Expense Management software is a state-of-the-art tool that saves time and resources in a compliant and user-friendly way.
If you’d like to learn more about how to boost your business’s financial productivity, schedule an Expense Management software demo with us now! Get in touch now!