Expense management what it is and how to manage it?
By definition, expense management is a system of organization deployed for processing expense reports, approvals, and employee reimbursements. If you want to take the pain out of expense management, you can adopt an innovative way of managing your expenses using any free templates provided by Formplus here. It could involve filling out an expense claim form or entering data into the expense management software and sending it to a line manager for approval. The second step is on the part of the accounting departments, and it includes auditing and analyzing data submitted, getting support, and making payments.
Added to being time-consuming and labor-intensive, the expense management process is riddled with challenges right from when you set up policies till reimbursements are processed. Employees’ recording of expenses includes employee expenses, paper receipts, hotel bills, or any paper trail that can be presented as proof of purchase. This is so because reimbursement of an expense claim is dependent on the provision of an expense claim or report. Transparency and accountability aid in preventing fraudulent practices, keeping expenses at bay, and improving the bottom line.
Automated expense management process
By tracking and categorizing expenses, individuals gain a clear understanding of where their money is going. This awareness allows for better budgeting, saving, and investing decisions. It empowers individuals to make informed choices about their spending habits, prioritize financial goals, and avoid unnecessary debt. There are outstanding mobile applications that makes personal expense management expense management definition handy, notably SMoney that are available in both iOS and Android Versions. As in the case of travel and expense policies, if the approval workflow is not well defined, the expense report might just not reach the right person and in the right time frame. This causes frustration, confusion, and delays in reimbursing employees for the money they spent from their pockets for your business.
You should make sure that your expenses policy is clear and concise; too much small print will lead to confusion. If it isn’t clear whether or not an expense is permitted, employees will likely try to apply for it. This creates a lot of paperwork – so taking the time to clarify and pare down your policy in the beginning will save you admin time in the long run. Expense management software exists as standalone tools, such as ClickTime, Ramp, Zoho Expense, or Airbase. Yet, sometimes it’s integrated within accounting software, such as Quickbooks, or in an HR platform like Rippling, Workday, or isolved.
