Companies want to know where their money goes, which is why every expense must be reported regularly and supported with necessary receipts. When companies first start reimbursing business expenses, many resort to paper-based processes. Save your receipts, fill out an Excel spreadsheet, staple the receipts to the report & hand it to accounting. This seemingly simple process takes an incredible amount of time.
The good news is… There is Expense Reporting software available for ANY size organization that greatly improves this process. Expense Reporting software makes the process far more convenient and cost-efficient for everyone involved in the process.
What Are The Typical Expenses Incurred by Employees?
These can be anything business related that are incurred by an employee or owner of a company. Here’s a general high-level list of what we’re referring to:
- Car Rentals
- Uber / Taxi Fares
- Office Supplies
- Training (webinars, conferences, meetings)
How Does Expense Reporting Work?
For reimbursable expenses or expenses against company credit cards, the process is generally the same.
1. Capture Your Expense Receipt
Typically, scanning your receipt via your phone is all that’s needed to start the process. Once scanned, Optical Character Recognition (OCR) software works its magic to automatically read data from the receipt & create the basis for your expense (vendor name, expense amount, date, etc.).
2. Finish Processing Your Expense
There are some components that software will not know on its own without a little bit of your manual intervention. This generally includes adding information such as ‘What the expense was for’, ‘who the expense was for’, what project it pertained to, etc.
3. Gather Approvals
Once your expenses are entered, they’ll be submitted for approval. The approvals are automatically routed to the person responsible for double-checking the expenses and ensuring they’re valid business expenses per the company’s policies.
4. Receive Reimbursement
The primary goal of having an expense report is to get reimbursement as fast as possible. At this stage, you will receive the refund through a direct deposit, check payment, or any other mode of payment transfer. If a corporate credit card was used, there is no reimbursement, obviously, but the approved expense will go towards reconciling the card.
5. Analyze Reports
Having expense report detail can assist any organization. Run reports on who are your highest spenders, where you’re spending the most money, etc.
What Are The Benefits?
It is a great time for businesses to utilize cloud-based expense reporting software. Here are the top reasons to consider:
Fast and Convenient Expense Reporting
With just one click of a button, expense reporting is made efficiently and quickly. Everyone can easily capture receipts, submit them to the proper department, and have reimbursements approved. The interface of the software also allows users to track spending.
Automated Receipt Management
An excellent expense reporting software has an Optical Character Recognition (OCR) feature, which automatically creates expense line items based on the capture receipts. Using a smartphone or other handheld devices, each user can take photos of all receipts for expenses.
Secure and Accurate
An expense reporting software eliminates the need to record, track, and monitor expenses through documents or papers. Instead, the processes are completed through a digital platform. As a result, businesses can experience a more accurate and secured method of getting the expense report. It can even reduce the occurrence of fraud (ensure expenses aren’t being double-submitted, are receiving the proper approvals, etc.). See the report by Wipfli on top areas of expense report fraud.
Results to Cost Reduction
One doesn’t have to stress their brain too hard to see the cost-savings with utilizing expense reporting software, just in time-savings alone. A paper-based & manual process can take an incredible amount of time. Expense report software flat-out decreases the time it takes employees to submit their expenses; thus can better dedicate their time to what they’re actually being paid to do.
Flexible Pricing Models for Expense Reporting Software
As mentioned above, expense reporting software makes sense for organizations of all sizes. When looking for software, you’ll see these types of pricing structures:
- Pay per expense report (great for low-volume companies)
- Pay per user (great for high-volume companies)
- Pay per deployment (great for budgeting and a mixture of usage and users)
- Free expense reporting software (free solutions may not check ALL boxes and provide all benefits mentioned, but they are still available to immediately improve areas of your processes)
Better Reimbursement Process & Employee Satisfaction
Reporting business expenses is never included in a job description. Improve this process with software to become less-mundane and take up less of employees’ time.
How to Pick the Right Expense Reporting Software
When looking for software, every company should prepare the following information before starting the search:
- How many expense reports do you anticipate on a monthly basis?
- How many users/employees do you anticipate using the application?
- What is your ERP / Accounting solution? (you’ll want a solution the tightly integrates with accounting)
- What is the best pricing model that fits your business? (Pay per expense report, pay per employee, etc.)
We can help. Our software matching algorithm automatically analyzes your needs and provides recommendations on which Expense Reporting software fits your organization best. Learn more.