Expense management and control is an important aspect of any organisation. When you’re setting up a new company or are in the process of growing your business in some way, ensuring that you have processes and controls in place to manage your expenses is essential. Whether you’re launching a new venture or looking to optimise existing processes, it’s important to understand how different methods can impact your business. Implementing the right expense management systems can help reduce costs, cut back on unplanned spending, and streamline the entire process. Use this comprehensive guide to learn about the various ways you can streamline your organisation’s expense management process, as well as other useful tips.
Understanding Expense Management
Expense management is one of the most important aspects of business accounting. It’s the process by which companies record, track, and classify all of their expenses. This data can then be used for different purposes, such as creating budgets or for forecasting future revenue streams.
Automate Expense Approvals
One of the most effective ways to streamline your organisation’s expense management process is to automate your expense approval process. This can work particularly well if your company has remote employees or you have employees who travel frequently. Implementing an automated expense approval process is a great way to save time and money by reducing the time spent on manually approving expenses. With an automated approval process, employees can submit their expenses and have them approved automatically. This can simplify the process and make it easier for everyone involved.
Consider A Virtual Credit Card
Another way you can automate some aspects of your expense process is by implementing a virtual card solution, such as one provided by Payhawk. A virtual credit card can be helpful for situations when you or your employees need to make purchases but don’t want to carry many cards with them. A virtual visa card is connected to the app with Payhawk, meaningyour accounting department can track spending as well as set limits so that employees don’t need to spend time filling out expense reports. This can also be especially helpful for times when you are working with vendors and need to pay for costs upfront, as well as for business travel.
A virtual credit card can streamline the process of making purchases. You can make the purchases directly through your account, and the accounting department will have all the information instantly. This can save you time spent processing payments, and it can also help you keep better track of what you have spent.
Eliminate Paperwork
Another aspect of expense management that you may want to consider is eliminating unnecessary paperwork. While having a paper trail is important, there are some aspects of the process that may not need to be documented. By eliminating paperwork where it is unnecessary, you can save yourself time. You can also help eliminate errors by making sure that all data is entered correctly and that there are no discrepancies between the paper and digital records. By eliminating paperwork, you can also help speed up the approval process. If you are using paper receipts, it can take a lot of time to enter the data, review it, and then approve it. By moving to digital receipts, you can speed up this process and help save time throughout your team.
Integrate Your Expense Reporting With Other Departments
Another way you can streamline your expense management process is by integrating your expense reporting with other departments. For example, you may want to integrate your expense management system with your HR system. Doing so will allow employees to report their expenses as well as submit their receipts via the same system. This will allow employees to submit their expenses more quickly and easily and provide management with a more comprehensive view of all the expenses being incurred.
Develop A Digital Reimbursement Process
If you’re currently using a paper-based system to reimburse employees for their business expenses, you might want to consider switching to a digital system. A digital reimbursement system can help you to simplify the process and can also help you to reduce the administrative burden of reimbursing employees’ expenses. With a digital reimbursement system, employees can submit their expenses online, and employees can also view their expense reports online.
Record Expense Data
Additionally, it’s important to record all relevant data for each type of expense you incur. This can include details such as the type of expense, the vendor, the amount spent, and the reason for the purchase. When you’re manually recording your expenses, it can be easy to forget to include certain information. If you’re using a digital tool, however, it can be easier to ensure that you’re recording all relevant information. This can help you to identify issues and make it easier to identify the source of any problems if you notice any issues with your finances.
