Expense management software is a rising asset to businesses both big and small, especially as more of the payment space transitions into online and virtual processes. In fact, the expense management software market is anticipated to grow at a compound annual growth rate of 12.4%, reaching a market value of US$6,599.2 million by 2025 (source).
As the expense management software industry grows leaps and bounds, it is important for businesses to hop on board the sailing ship and reap from its benefits. This blog will explore how your business will benefit from transitioning from paper-based and manual expense management strategies, to using up and coming expense management software.
Enforcement of Business Expense Policies
Enforcing a business’ expense policy can be difficult – especially if a business has many employees making different and complicated expenses everyday. Programming a business’ expense policy and related rules into an expense management software will make it so that every rule is enforced for everyone who uses the software. Employee reimbursement applications will be accepted or denied according to the rules and businesses will no longer need to manually apply their policies to every employee reimbursement application.
Records gathered by an automated expense management software will also make it easier for businesses to conduct internal audits to identify any fraudulent payments – particularly those involving employee reimbursements. As such, expense management software can work to identify and punish employees conducting fraud and further enforce a business’ existing expense policy.
Decreased Processing Costs and Time
Rather than manually filing all of an employee’s receipts and invoices, expense management software will simplify the process significantly by automatically storing digital invoices and receipts of expenses made. This will cut processing costs as tangibles and space-wasting paper will be completely removed and activities such as matching accounts will no longer need to be manually performed. Through the simplification of the expense management process, expense management software can help businesses save on costs.
Similarly, expense management software can also help businesses save on time. Rather than performing all the manual record-keeping and documentation which comes with expense management, employees can spend their time doing other productive duties. Saving on employees’ time will subsequently, also help a business save on costs.
Enhance Employee Experience
An automated expense management software may also improve overall employee satisfaction by removing tedious manual processes such as applying for employee reimbursements.
Instead, by installing expense management softwares (such as DiviPay), employees can automatically submit reimbursement applications, and also make payments through business-issued virtual corporate cards. The convenience of the software process will enhance the overall employee experience with expense management and may help a business form a better internal reputation.
Expense management software can have many beneficial effects on your business by not only simplifying the expense management process, but also enhancing employee experience and improving morale. The benefits of expense management software extend beyond its practical uses and can help change a business ‘overall financial strategy for the better entirely.