What is expense management automation (and why do you need it)?
Let’s face it: as a small business owner, expenses are inevitable. But the trials and tribulations that come along with those expenses — like spreadsheets, manual data entry, and piles of paper receipts — are, thankfully, avoidable.
With automated expense management software like us, you can kiss the days of relying on manual processes goodbye. Our software empowers you to save time, increase accuracy, and eliminate the stress of manual processes for you and your team.
Read on to learn everything you need to know about what expense management automation is and why you need it for your business.
What is expense management automation?
Expense management automation is software used to automate the entire process of handling business expenses, from recording transactions and tracking receipts to submitting expense reports and processing reimbursements. Essentially, expense automation is the tech-savvy, time-saving answer to outdated, manual expense reporting.
Automated expense management systems replace traditional paper-based methods, where every receipt is a physical document and every report is a manual entry task. Instead, automated expense management software captures receipts digitally, categorizes expenses accurately, and streamlines approvals—all without you having to lift a finger.
It's a seamless, efficient way to manage your business expenses, reducing the time and effort it usually takes to get this necessary task done and dusted.
Why you should automate the expense management process
The shift to expense management automation isn't just a trend; it's a smart, strategic move for businesses that need to ramp up efficiency and accuracy. Making the switch to expense automation can be game-changing because:
It saves time: Expense automation drastically reduces the time spent on preaccounting tasks, like processing and approving expenses. Consider what you could be doing with those extra hours each week.
It improves accuracy: Automated systems minimize human error, ensuring more accurate expense tracking.
It’s more cost-effective: By saving time and reducing errors, businesses can cut operational costs.
It makes employees happier: A simplified expense process improves the overall experience for employees, reducing frustration and boosting morale.
It helps with compliance and control: Automated systems help enforce company policies and provide better control over expenses.
It paves the way for insightful reports: With all data centralized, businesses gain valuable insights for better financial decision-making.
Long story short, embracing expense management automation means stepping into a world where expense reports are no longer a source of dread but a streamlined, efficient part of your business operations that everyone can get behind.
What are the benefits of expense management automation?
The benefits of automated expense management are indisputable. Let’s take a closer look at all the reasons that automating is the right move for your business.
The benefits of automating the expense process are:
1. Fewer errors
Human errors add up, and correcting (and re-correcting) these mistakes can become a serious time drain for your teams — or worse, these mistakes go unnoticed, opening up a bigger can of worms.
With expense management automation software, there’s no manual data entry involved, which reduces the likelihood of an error occurring and leads to significant time and cost savings.
2. Faster reimbursements
With expense automation, the turnaround time for reimbursements is quick and easy. This efficiency is due to the software’s ability to instantly verify and approve expenses, eliminating lengthy manual reviews and paperwork that no one likes to do.
This speed is a win-win for everyone: employees get reimbursed quickly, improving their satisfaction and trust in the company, and the finance team spends less time processing each claim.
3. Realtime visibility and control
Automation provides realtime insights into your business expenses at any given moment, offering a level of visibility and control that manual processes can't match. This instant access to spending data empowers you to make informed decisions and maintain better control over your financial policies.
4. Increased productivity
By automating routine tasks, your team can redirect their focus from mundane data entry to more strategic activities. This shift not only boosts overall productivity but also allows employees to contribute more meaningfully to the business’s growth.
5. Integration with other tools
Modern expense management solutions like Expensify are designed to integrate seamlessly with a range of other critical business tools, like Xero or QuickBooks. This allows the platforms to work together as a team, ensuring consistency and accuracy across the board.
6. Happier employees
A streamlined, user-friendly expense management system contributes significantly to employee satisfaction. It simplifies their part of the process, reduces frustration, and demonstrates the company’s commitment to efficient, modern business practices — a win-win for all.
Manual vs. automated expense management
Just because something has always been done a certain way doesn't mean it's still the best way to do it. Many companies cling to manual expense management processes, hesitant to change a familiar system, even if it's holding them back.
The fact of the matter is that embracing change, especially when it comes to automated expense management, can lead to significant improvements in efficiency and accuracy, leading to improvements in overall business performance. Take a look at the key differences between the two methods below.
Manual expense management is:
Time-consuming: Manual processing involves physical receipts, outdated receipt books, spreadsheets, and a lot of data entry — which can take forever to deal with by hand.
Error-prone: The likelihood of human error in recording and categorizing expenses is, unfortunately, high, especially when employees are trying to manually enter all this receipt data on a deadline during month-end close.
Subject to delayed reimbursements: The slow-moving process often leads to delayed reimbursements, causing employee dissatisfaction.
Lacking realtime insights: Manual methods make it difficult to track spending patterns or gain immediate financial insights.
Automated expense management leads to:
More efficiency: Processes are streamlined, with digital receipt tracking and automated expense report generation.
Improved accuracy: Less room for human error = more accurate expense data across the board.
Faster reimbursements: Quicker processing leads to speedy reimbursements, keeping employees happy (and even incentivizing them to submit their reports faster!).
Instant access to data: Realtime data availability offers valuable insights into spending and can help you make informed financial decisions to ensure long-term business health and success.
How to choose the right expense management automation software
Expense management automation tools aren’t one-size-fits-all, so it’s important to select the software that’s future-proof and best for your business. Here are a few things that a stellar system should include:
Digital receipt capture: This enables you to automatically capture and store digital copies of receipts, simplifying record-keeping and ensuring no expense goes untracked.
Seamless integrations: You should be able to connect with a range of accounting software, credit card integrations, and business tools for a unified financial management experience.
Invoice assistance: Streamline invoice processing with tools that help you quickly generate, send, and track invoices with minimal effort.
Bill-pay automation: Automate your bill payments to save time, reduce errors, and maintain a consistent payment schedule.
Credit card import: Easily import credit card transactions directly into the expense management system for accurate and up-to-date financial tracking.
Customizable workflows: You should be able to tailor the expense management process to fit your business's unique needs and preferences for maximum efficiency and control.
Managing expenses has never been easier
Expense automation is changing the game for small businesses, finance teams, and anyone who handles expense reports. Expensify takes it a step further. With automated processes, digital receipt capture, integrations, credit card import, and even travel assistance, handling your money stuff has never been easier.
So, what are you waiting for? Make the switch to expense management automation and see how good your life can get.
