Why are corporates increasingly opting to go for expense management solution
Managing expenses is one of the core tenets of running a successful business. However, running over budget is something that all businesses have had to contend with some time or other. While exceptional circumstances can and do arise from time to time, running over budget is, most frequently, a direct result of improper planning. This is why corporates are looking at availing of expert service providers to manage their expenses and keep overheads to a minimum.
Expense management has a singular aim: maximize revenue while minimizing costs. And when it comes to managing expenses initiated by employees, there exists a very wide overhead. This cuts into revenues and is entirely avoidable with only a little bit of control over the process.
- Often it is found that filing for claims is an immensely confusing process for employees and also surprisingly error prone.
- In the absence of a central database for keeping track of the record of expenses as well as requests for reimbursements, there are ample opportunities for making errors.
- Errors creep in through the process of recording or through incorrect release of funds, but on a large scale, it really does have a significant impact on the companys bottom line.
Opting for expense management therefore certainly is a good idea. Not only does this free up company resources that might be better used elsewhere, it also streamlines the process of verifying, auditing and reimbursing employees for expenses. This works for both the benefit of the corporate executives as well as the employees themselves.
Most expense management systems focus on making the process of filing an expense claim as painless and simple as possible. Manual processes involving papers or spreadsheets are unwieldly and prone to error, not to mention a huge hassle for the employee on whom the burden to provide this documentation falls, at least in most case.
- Taking a page out of the huge amount of research that has gone into designing user experience (UX) systems for software, expense management systems ensure that the employee is able to file a claim easily and simply with minimal hassles.
On the other side as well, it streamlines the process that involves expenses getting authorized by a supervisor or a manager before being sent to the finance department to actually affect the logistics of releasing the payment to the concerned employee.
- When the responsibilities of recording, authorizing and forwarding request to appropriate departments for approval are delegated to an external expense management service, the chances of gridlock, bureaucratic hurdles or office politics entering the fray are minimal, leading to huge gains in efficiency.
The processes are highly automated, leading to efficient claims processing at minimal loss of time, saving both the company and the employee a lot of headache.
- Needless to say, companies save a ton of resources and paid employee time by availing of an expense management service rather than using company personnel for the job.
Expense management services can really provide the turnkey solution you need to maximise your business potential and run it with as few avoidable losses as possible.