More than ever, your small business’s finance and accounting functions are strategic assets. Businesses are generating more data than they ever have before; the ability to make data-backed decisions for your business starts with finance’s ability to parse that data.
But all too often, these functions are bogged down by manual workflows instead of spending valuable time on those strategic decisions. In fact, 49% of companies still rely on a manual expense management process.
What if we told you that it didn’t have to be this way?
The right expense reporting software can automate your expense workflows. You’ll increase visibility and control over your expenses, as well as boost productivity thanks to the time saved. Most importantly, you’ll free finance and accounting functions to focus on the business’s big picture.
This article walks through why your expense report software is important, and the impact it can make. You can also download our comprehensive guide to finding expense reporting software. It covers:
- Calculating the ROI of your solution
- Features and functionality to look for
- Questions to ask each solution
- And more!
Now, on to why you need expense reporting software…
Increase Visibility for Better Decision Making
Your expense reporting software should empower your finance and accounting teams to be a more strategic company resource. Automations to help track expenses, reconcile and manage credit card transactions, pull reports, and gain insights at a granular level across your company help achieve this. Best case, expense reports are just as easy to access on mobile as they are on desktop. Now, instead of pulling reports and sifting through data, finance can easily glean insights that inform business decisions.
“In the past, organizations looked to the CFO to ensure the financials of the company were accurate. Today, with the increase of data across organizations, CFOs are looked upon to advise leaders as they plan out the strategic future of the company.”
— Adaptive Insights CFO Jim Johnson, as told to Forbes
Gain Control Over Expenses
Maintaining policy compliance and reducing the risk of fraud is a common concern for finance teams in regards to business expenses. Expenses are often submitted with missing or incorrect information, or are outside of policy. An expense management solution will help you dramatically increase your control over your data’s accuracy. The solution should have system-triggered rule settings that automatically flag out-of-policy expenses as rule violations. It should also connect directly with your ERP or accounting system (Bill.com, QuickBooks, Sage Intacct, etc.) to decrease the amount of manual work (and human error!) required.
Companies saw a 64% reduction in errors and 40% improvement in policy compliance when using an expense management solution.
— The Aberdeen Group
Boost Employee Productivity to Lower Costs
According to the Aberdeen Group, the average cost of processing a single expense report is $20.65 factoring in the time it takes for a finance team to review, approve, file and reimburse expenses.
An expense management software can help automate your expense reporting and reduce time across the entire workflow. This is especially true with tools that focus on usability and automation, so employees can quickly enter expenses without major disruptions to their work. Be sure your expense report software can also connect to corporate credit cards for streamlined credit card reconciliation and management.
You can reduce the cost of processing expenses by nearly 60% when implementing an expense management solution.
— The Aberdeen Group