Benefits of Expense Reporting Software

Tablet, paper, pen and cup of coffee on the table
Source: Expense Wire

Expense reporting software is an investment, and before you make that investment you must be sure of the benefits it will provide for your company. What are some of the major benefits that an expense reporting software brings to the table? One of the most important is the ability to enforce company policy in regard to expenses through proven spend management strategy. Many of the more traditional methods of expense reporting do not allow the level of policy enforcement that most of those in management would like. As opposed to having to manually go through and reject or reroute expense reports because they do not contain enough information, managers can simply set checks within the system that will ensure that a complete expense report is submitted every time.

Most automated expense reporting systems allow you to set up schedules to notify employees when it is time to file expense reports. They can also be set up to handle the approval process for reimbursement. Most companies have standard procedures for who an expense report must be approved by before it is reimbursed, and this chain of command is usually dependent on the exact amount of the expenses. Automated approval routing allows for the expense report to be sent to all managers who need to approve the expense before it is reimbursed. This cuts down on employee dissatisfaction due to delayed reimbursement because of unprocessed expense reports.

Receipts are an essential part of the expense reporting process and the easier it is to get the receipts into the system, the more likely it is that employees will quickly follow through when filing their expense reports. Since these receipt images can be stored within the system, this eliminates a lot of the paper handling that comes with storing receipts for expense reports by hand in a manual system.

Credit cards are frequently the most often used method of payment for business transactions, so it is important that the expense reporting system have an easy way to keep track of this kind of information. Many systems will allow you to set up automatic expense reports for corporate credit cards that can easily be populated by dragging and dropping expenses into the reports. This is another way to prevent the paper build up that often occurs when physical receipts are stored. If personal credit cards are used, special expense reports can also be created and populated from the information from your personal credit card information.

Finally, the ability to produce specific reports with all the information that you need about a particular trip, to analyze trends in a particular employee’s spending habits, or to get an overall view of company spending; all these reports can be compiled in a matter of minutes through an automated expense reporting system. If you want to know the main areas that your company spends money in or you want to know expenses down to the department level, an automated expense reporting system can give you the information you need. Automated expense reporting systems are definitely worth the investment.