Expense Management Overview:
The expense management tool streamlines the process of collecting, analysing, and disbursing reimbursement for business expenditures incurred by the staff.
When an automated expense management tool handles all your expenditure reports and reimbursements, nobody makes a mistake.
This blog post will guide those thinking about adopting an online expenditure reporting system but aren't sure where to begin by highlighting the most important aspects of such a system.
Expense Management Tool: 6 Characteristics To Look For
Depending on the specifics of your company, you may require more or fewer functions from your expenditure management software. There are, however, a few basics that must be included in every good solution.
To get the most out of your investment, make sure the solution you pick has the characteristics mentioned below.
1. A user-friendly interface
Employees are responsible for creating and submitting expense reports and necessary receipts. HR managers are responsible for reviewing employee expenditure bills and receipts. The smarter expense management tool integrated into an HRMS helps to approve or reject reimbursement requests proactively.
So, HR managers, finance/accounts team, and reporting managers demand an easy-to-use dashboard in the expense management software.
A dashboard can help you understand the total daily expenses your team is adding to the system. As a leader, you can easily browse the tool to locate the expense sheet within minutes. You will not be lost in the menu of buttons. The reimbursements and claims are easily available under the "my requests" option in the panel if we talk about uKnowva HRMS.
This easy-to-use software interface thus makes the job easier for everyone who needs to approve or reject the bills raised by the staff instantly.
2. A mobile-friendly solution for managing expenses
Almost all software developers include mobile capability, and apps are typically the most practical way to access it. Employees may now manage their expenditure reports from start to finish with a mobile app. Managers may safely monitor and approve spending reports from any location.
Consider options that provide an employee-friendly app. Having a cloud-based app that communicates in real-time with your HR and payroll software is also useful. That way, you can keep an eye on expenses and help your staff whenever they need it, no matter where they are.
3. Entirely configured approval system
A manual expenditure report takes an average of 20 minutes to complete. It will take another few minutes to fix any problems. An expenditure report is considered approved if it has been reviewed and accepted by all reviewers.
Time might be wasted waiting for everyone to manually fill out, amend, and approve an expenditure report.
When reimbursement is delayed due to these roadblocks, employees get frustrated.
Find expense reporting software that allows for automatic approvals to prevent this problem.
Workflows in an automated expenditure management tool expedite the processing of each bill or invoice without compromising accuracy or integrity.
If you want a great solution, look for one platform like uKnowva. It notifies reviewers when it's their turn to accept or reject an expense, reimbursements, or any other claims raised by the employee.
4. Digitally storing documents in multiple formats
Keeping track of paper receipts, especially while travelling, may be a hassle. The loss of a receipt might create problems with a reimbursement if the employee submits an expense report late.
However, this issue may be rectified by using expenditure management software with built-in digital receipt storing and uploading capabilities. Employees can upload their bills and invoices in multiple formats when filing for reimbursement or other expense claims from the company. They have this flexibility. Plus, the system stores the documents uploaded. So, the information of that claim or reimbursement is never lost.
The entire process gets digitised. Therefore, staff members have limited or no dependency on the paperwork anymore. All employees and team members can benefit from the saved time and the decreased likelihood of misplacing the receipts because of this process.
5. Configure reimbursement policies on the go
Every company has different expense management policies. So, HRs must invest in an expense management tool that allows them to configure reimbursement and other claim policies on the go.
HR managers and employees do not wait long to change their reimbursement rules from time to time. They can simply go into the configuration engine and start to make changes. As soon as the HR manager or leaders make the changes in the rules of the claims and settlements, the approver will approve it within minutes.
Otherwise, HR leaders often also have super admin access, which removes the degree of dependency. Then, such changes roll out within seconds for all employees. If the company wants, they can customise the system to send automatic emails to employees on crucial changes in the HR reimbursement and claim policies.
6. Analytics and reports that are updated in real-time
Keeping tabs on corporate expenditures aids in several ways, including:
- Recognise cycles and tendencies in costs
- Make a spending plan
- Fix the problem of false claims for financial aid
Expense management tools facilitate data analysis, allowing you to make informed decisions about corporate expenditure and save costs where possible. In general, it's good to have a system that allows you to track all expenses that will vary depending on your company's daily liabilities and investment needs.
A smart and digitally transforming expense management tool is what most of modern Indian companies need today. However, the best solution is when this system integrates with other core HR processes like onboarding, employee data management, employee engagement, learning and development, payroll/compliance, etc. uKnowva provides the advantages of a fully integrated HRM suite with expense management available at your fingertips.