What is Expense Management?

Your finance team no longer has to match the credit card statements to bills and look for compliance. We all know matching credit card statements to bills and auditing them for compliance is an arduous task. Choose an expense management system that allows you to add and customize approval workflows that suits your organization.

You get comprehensive reports, making it easier to extract insights and make data-driven decisions. Also, as all the information is stored within the software, there are no gaps or loss of context. Automation helps you create standardized workflows to ensure consistency and efficiency.

Why Should You Use An Expense Management System?

It allows you to request, manage, match goods receipts, and pay vendors from a single place. The best part is that your data remains consistent across all your software making the lives of financial controllers easier. By deploying a single software solution, you detect expense management definition and prevent potential errors or discrepancies in financial reporting. Automation makes this lengthy and complex process a simple and efficient procurement cycle. Furthermore, stakeholders can efficiently review and approve requests with automated notifications.

Physical credit cards

Pluto combines the above features with easy integrations, complete visibility, and total control over every aspect of your company’s expense management. Businesses, especially in the UAE, usually use spreadsheets to manage their expenses and reduce dependency on paper receipts. Some common spreadsheet software is Microsoft Excel, Google Sheets, and Zoho Sheets. Owners, managers, or C-levels are more concerned about growing revenue, managing risk, reducing expenses, satisfying employees, and having a productive business.

You must understand your organization’s customer support requirements before you shortlist vendors. If you have frequent traveling employees, you might need a highly rated vendor with quick responses, active live chats, and timely customer support. Yes, salary is considered an expense and is reported as such on a company’s income statement.

Can my company require me to put business travel on my own credit card?

While procurement may seem like a simple purchase on paper, the process requires planning and structure for larger organizations. End-to-end reimbursements are crucial for a business to operate seamlessly. With quick end-to-end reimbursements, employees no longer have to wait till payroll to get reimbursed. Having reimbursements processed quickly creates a feeling of trust and satisfaction among employees.

But good news- that is where expense management software comes into play. No doubt that managing your expenses can be a time-consuming and even complex task when done manually. L Now that we have understood the process and the importance of expense management tools, let’s see what the future may look like for these cost management techniques. In such cases, when each step is pre-defined, and you get notified of every transaction regularly, it streamlines every expense claim and its approval process.

Business credit card cons

Another is keeping track/planning out how much money is spent across various categories so that they don’t all add up at once. Common examples include salaries, supplies in bulk that are never used up before they expire, the money spent on marketing initiatives to promote a company or its products/services, etc. This can include salaries, supplies, rent on office space or warehouse location, etc., and other necessary costs to keep everything running smoothly. An expense can be a helpful tool to determine your company’s profitability and whether or not it is truly making any money. B) Keep track of how much money is spent on supplies, as this will help you determine when it’s time to purchase more.

• Other platforms, including Workstem and InfoTech requires an upfront payment plus relatively complex setup procedures.
• If your employees are unsure about what kind of expenses are acceptable, they are bound to make mistakes while claiming reimbursement.
• Instead, it might be cheaper just to call the trainers to your place and arrange their travel and accommodations.
• Therefore, managing the cost of processing expenses can affect an organization’s bottom line, and if it is not addressed correctly, the effect can be damaging.
• In such cases, you can take preventive control to arrange an online meeting or shift the dates to other than peak travel dates to avoid extra spending on airfare.
• Businesses, especially in the UAE, usually use spreadsheets to manage their expenses and reduce dependency on paper receipts.