EXPENSE MANAGEMENT TOOLS: Step by Step Guide and Best Tools to Use

EXPENSE MANAGEMENT TOOLS
Image Source: MobileExpense

Businesses of all sizes strive for accurate spending tracking and reporting. It’s always a challenge to find better ways to manage the influx of paper that comes with keeping track of invoices and other purchases. The same is true for making reliable and easy-to-understand reports, checking and approving them, and then paying people based on what the reports say. Controlling employee business spending is becoming easier and less tiresome thanks to cloud-based expense management tools. Expense management tools are used by businesses to streamline the reimbursement and auditing of outgoing funds. This article focuses on the best-automated expense management software, including American Express management tools. We will also discuss various travel and expense management tools.

Read Also: WEALTH MANAGEMENT TOOLS: Definition, and  Best Wealth Management Tools

What is Expense Management Process?

The expense management process is the practice of handling, paying, verifying, and refunding employee-initiated expenses. It also includes the tools used to analyze the data and the procedures that govern the allocation of funds.

Managing expenses can be done manually or automatically, and it often consists of two separate procedures. The first method is a series of actions taken by an employee to either request funds to complete a task or request reimbursement for already spent cash on a task that has been completed.

This could involve submitting a paper form or electronic data entry to the line manager for review and approval as part of the cost management process. The second phase entails the accounting departments conducting an audit and analysis of the given data, in addition to obtaining support and issuing payments.

How do you manage expense reports?

Tip on the administration of your business expense Reports using the automated management tools;

  • Maintain a transparent expense policy. Determine what kinds of out-of-pocket costs your firm is willing to absorb, and make sure that your staff is aware of this policy in its entirety.
  • Make it simple to report and keep track of expenses.
  • Distribute Credit Cards for the Company.
  • Establish a Regular Auditing Schedule.

Automated Expense Management Tools

The conventional methods of cost reporting and reimbursement are fraught with complications and dangers. They involve the inherently fraudulent and error-prone processes of manually processing actual receipts and manually verifying. A company’s morale, finances, and bottom line are all weakened by the inefficiency of traditional expense management. As a result, most successful businesses use automated expense management tools to lessen their vulnerability to these threats.

Expense managers, accountants, and approvers can all breathe a sigh of relief when they switch to automated expense management tools for handling reports and payments. It is a vital resource in today’s environmentally conscious and productive workplace.

Automation in expense management helps businesses streamline the steps required to reimburse workers for business travel, meals, lodging, and other incidentals. In addition to ensuring that the organization is not overpaying in allowed or unapproved expense areas, automated expense management tools also ensure compliance with the company’s expense management policy.

By automating the process of tracking and reporting on expenses, businesses may ensure they are in line with regulations and are being held accountable for their spending.

What is an Automated Expense Management tool?

Automated expense management tools are software designed specifically to aid workers in keeping track of and accounting for business expenditures. Finance departments also utilize it to track trip requests, expenses, and reimbursements. You can reduce the potential for error in the otherwise time-consuming process of managing business expenses by using automated expense management tools.

Aian addition, it facilitates the receipt and processing of travel cost reports from an organization’s mobile workforce. However, expense reports always pass through reviews for possible policy infractions before they will be reimbursed. The essentials of expenditure management are still there, but the elimination of manual input and checks has made a big difference for everyone concerned.

What Tool for Managing Your Work Expenses Do You Use?

Whatever your business situation, whether you’re a sole proprietor, a rapidly expanding startup, or a well-established corporation, the following suggestion will help you save time, stress, and money.

  • Expensify
  • Wave 
  • Scanbot
  • Receipt Bank
  • FreshBooks

What is Expensed Software?

It is the kind of software that automates a significant portion of the process of providing reimbursement to employees for business-related expenses. The program eliminates or significantly cuts down on the requirement for paper, shortens the amount of time spent managing spending, and significantly cuts down on errors.

Does QuickBooks Do Expense Management?

Yes. Keeping tabs on and organizing all of your company’s financial transactions is a breeze using QuickBooks. It only takes a few seconds to upload or send receipts to QuickBooks. By utilizing the QuickBooks mobile app, you may take images of your receipts and upload them.

American Express Expense Management Tools

The American Express Company AXP last year released automated expense management tools for the benefit of its Business Gold and Platinum Cardmembers in the United Kingdom. The “AmexExpense”, was developed in collaboration with industry-leading Findity to deliver streamlined expense reporting and analysis.

American Express expense management tools facilitate the financial department’s ability to process corporate expenses with minimal effort. Businesses may now easily acquire receipts online, eliminating the need for customers to save paper copies. After the transaction, the digital receipts can be checked against the records. Businesses save time in the reconciliation process as a result, which would otherwise be laborious owing to the need for extensive manual reconciliation.

The American Express expense management tool “AmexExpense” provides seamless ledger code and spending category matching by connecting client data with industry-leading accounting service providers like Xero, Quickbooks, and Sage. Furthermore, the transaction data is protected by American Express’s robust safety and security systems, which in turn protect app users.

The program also allows users to generate expense reports in a quick time, providing organizations with in-depth research on employee spending. Therefore, compliance departments can more easily set appropriate card controls and spending limitations to reduce wasteful employee spending and fraudulent expense claims. Aside from helping businesses, American Express’s automated expense management tools also hope to speed up the monthly process of submitting employee costs.

Why American Express Expense Management Tools?

AmexExpense’s release exemplifies American Express’ commitment to improving its services for Cardmembers by expanding its range of available cards and streamlining its internal operations. Likewise, the company’s Global Commercial Services segment provides a wide range of payment, expense management, and commercial financing options. Basically, these efforts should ultimately boost segment revenues.

In light of the ongoing global economic recovery, which has opened the door to higher consumer spending and the resumption of business activities, it appears that the timing of initiatives like the most recent one is also opportune. As a result, more claims for reimbursement of expenses are expected, highlighting the pressing need for a streamlined and efficient method of expense submission. The goal of the Amex Expense management tools is to make the most of the current conditions by cutting down on the time spent on processing expenses. In turn, this frees up more resources for companies to devote to activities that will help them expand their operations.

Expense Management Tools for Business

Employee productivity and financial savings can both be maximized by investing in an expense tracking software. To top it all off, expense management tools help you and your accountant better understand the financial trends of your business throughout the year, which is very useful at tax time.

Generally, it is ideal for you to think about using expense management tools for business and typical spending habits. If, for instance, your staff does a lot of driving for business, you may want to focus on expense management tools that can monitor mileage. However, ensure there is an integration between the tracker and your accounting software to cut down on manual entering.

How Does Business Expense Management Tools Work?

Expense management tools that can help keep tabs on your business spending are available both online and as a mobile app. Once you join up with a service, you’ll get an account and permission to add users up to your contracted maximum.

Depending on the type of expense management tools you’re interested in, you may be asked for basic financial or business details throughout the signup process. Integrating your business banking and/or credit card information into the software will maximize its usefulness. After submitting receipts for approved business expenses, your staff will be reimbursed directly into their linked personal bank accounts.

Expense management tools for businesses help you organize your spending and identify wasteful patterns. In addition, they can aid in controlling costs. However, it is helpful to combine similar expenses together, such as those connected to inventory or advertising, to check if you are staying under your set spending limits. These deductions make it less difficult to keep the money coming in.

In order to keep track of your business’ finances, check out some of the top expense management tools available for enterprises of all sizes.

  • Expensify
  • Zoho Expense
  • MileIQ
  • Certify
  • Concur Travel

Travel and Expense Management Tools

Generally, the costs of business travel usually add up quickly, so it’s important for companies to maintain careful tabs on their outlays. It’s a lot of work to coordinate business trips, but you can avoid losing track of money by using travel and expense management tools.

What are Travel and Expense Management Tools?

Travel and expense management tools are software designed specifically for managing and keeping tabs on company travel expenses. Travel and expense management tools are essential for companies that send staff on business trips. This is because it can be used for everything from arranging trips to managing personnel while they are away to generating expenditure reports.

Corporate travel and expense management tools have several uses for different types of businesses. It’s crucial that you have a complete picture of your business travel costs and access to knowledgeable customer service in case you run into any issues. It also facilitates the invoicing process and the planning of business trips in accordance with the company’s travel policy.

Circumstances that Require Travel and Expense Management Tools

How do you determine whether or not your organization could gain from implementing tools for travel and expense management?

Generally, it’s not hard to spot the telltale indications, hence let’s take a look at a few of them:

  • The amount of money that your organization spends on business travel is excessive.
  • Reporting on business trips is a pain in the neck.
  • The business travel you provide is both inefficient and unclear.

Best Expense Management Tools

Financial products like automated expense management tools facilitate the submission, tracking, processing, and reimbursement of employee expenses. It can also be used to bill clients for time worked on projects and/or reimbursed costs.

Expense management features can be found in both comprehensive accounting software and stand-alone applications. These capabilities may also come as part of a package that includes resources for purchasing, billing, budgeting, and similar monetary tasks.

On the other hand, saying the best-automated expense management tools is not always the right phrase. So, it’s okay if your best is different from mine. That’s why it’s important to make the most of the 30-day free trial period offered by most online expense management tools.

Trying out a piece of software for a few weeks is the best method to see if it will meet your needs.

But small business owners sometimes lack the time necessary to properly evaluate an application. As a result, we’ve gone ahead and completed a good chunk of the groundwork on your behalf.

#1. Rydoo

Rydoo performs admirably thanks to its modernized interface, which is able to handle not only the fundamental tasks of expense tracking but also foreign workflows and OCR scanning. It performs sufficiently adequately that it deserves the accolade of being number one on this list

PROS

  • Pricing that is appealing.
  • Optical character recognition (OCR) scanning is included in this expense tracking service for foreign purchases

CONS

  • The accuracy of OCR scanning is lower than that of competing goods in the market.

#2. Certify

Certify is our Editors’ Choice when it comes to the administration of expenses for small businesses since it provides excellent functionality, reliable reporting, a mobile app, and prices that are beneficial to SMBs. This tool basically addresses all expense management issues.

PROS

  • Strong optical character recognition of the scanned receipts.
  • Excellent capabilities for auto-filling.
  • The entire process, from beginning to end, pertaining to mobile reporting and submissions
  • Mobile application that is simple to use.

CONS

  • An extra fee is assessed for ACH reimbursements.
  • Integrations with programs other than QuickBooks are required to be managed directly by Certify.

#3. Expensify

Expensify goes the opposite direction and targets large enterprises with complicated software integration needs, whereas the majority of rivals in the expenditure tracking industry focus on small businesses. It performs admirably enough in this respect as well.

PROS

  • Expensify maintains its user-friendliness by making intelligent enhancements to the workflow.
  • Features innovations such as automated reimbursements and GPS mileage collection, among other benefits.

CONS

  • There is a severe learning curve associated with the user interface.

#4. Receipt Bank

Receipt Bank streamlines the process of recording expenses by reducing the amount of data entry that is required; nonetheless, certain users may require additional training before becoming comfortable with its procedures.

PROS

  • A mobile application that is simple to use and reduces the amount of time spent entering data.
  • Outstanding compatibility with accounting software.

CONS

  • Unusual management processes and permissions.
  • There is no option to flag violations of the policy.

#5. Abacus

Abacus is software for recording expenses that combines an intuitive user interface with a comprehensive feature set. This program gives users the ability to quickly enter expenses rather than waiting for a monthly report to be generated.

PROS

  • Costs that are manageable.
  • Contemporary design.
  • Integrated text function that helps to speed up the process of reporting and getting reimbursed.

CONS

  • For the trial, you need to submit details about your bank account.

#6. Concur Expense

The expenditure tracking solution known as Concur Expense is now a part of SAP and has proven its reliability and maturity over the years. Although this makes it a more viable option for larger enterprises, the product still has some challenges to overcome in terms of how easy it is to use and how much it costs.

PROS

  • Concur Cost is a well-established tracking solution that also features a mobile app that has recently undergone a redesign. Together, these two components offer comprehensive expense tracking.

CONS

  • Because there are so many different kinds of add-on services, it can be challenging to provide an accurate estimate of the final price.

#7. ExpensePath

ExpensePath is a good solution for keeping track of expenses for small and medium-sized enterprises. It has an easy-to-use interface, a reasonable amount of customization options, and a reasonable price.

PROS

  • Interfaces that are easy to use and come with an administrative guide for additional support.
  • Provides a flexible pricing structure, which is especially beneficial to smaller businesses.

CONS

  • The camera doesn’t capture exact currency, date, and vendor data; lacks functionality for OCR.
  • Requires manual input.

#8. ExpensePoint

ExpensePoint is unquestionably designed with the accountant in mind as opposed to the consumer who is attempting to swiftly collect information regarding expenses. On the other hand, for businesses that place a similar emphasis, this application provides excellent reporting and granular policy administration.

PROS

  • Control over the expense policies at a very fine level.
  • The reporting is quite impressive.

CONS

  • For the average user, the user interface can be a little bit complicated.

#9. Zoho Expense

Zoho Expense does well in this category, mostly due to the fact that it possesses a robust feature set in addition to strong customization options and a price tag that is friendly to small businesses. A no-brainer for people who already use Zoho products, and definitely something to take into consideration for those who haven’t worked with a Zoho service before.

PROS

  • Strong capacity for customization.
  • Outstanding integration with solutions from Zoho in addition to other services such as Lyft.
  • The Zoho One subscription option is a very cost-effective choice.

CONS

Required to submit expenses together with a report, which may cause a delay in receiving payment in the event that an inaccurate entry was made.

#10. Webexpenses

Webexpenses is a provider of online expense management software to businesses of all kinds in more than 70 countries across the world. The program is utilized in all sectors, including the retail sector, the financial sector, the technology sector, the construction sector, and the not-for-profit sector. Provides a Reasonable Return for the Cost”

PROS

  • Excellent reports, with the potential to be compatible with a variety of accounting software packages.
  • Utilizing the mobile app to import newly incurred costs.

CONS

  • The VAT split feature does not operate with the CC upload batch; it must be manually changed instead.
  • There were sporadic issues with the app’s stability (had to clear cache)

Why is Expense Management Important?

Businesses have a responsibility to conduct exhaustive audits of their expenses in order to guarantee that the company complies with applicable legislation and to verify that their staff are not overspending or purchasing products that are not linked to their jobs. Providing visibility into the amounts of money coming into and going out of the firm is one of the ways that technology for expense management may assist with business audits.

Conclusion

To properly manage finances, a business needs to see exactly how and by whom money is being spent. A company can get itself into terrible difficulty if it relies on inadequate data collected at its own expense. This is why and when automated expense management tools come in handy.

Expense management tools are used by businesses to streamline the time-consuming task of reconciling and reimbursing employees for business expenses. Expense reports can be made, sent, approved, reimbursed, and accounted for with the help of the program. Likewise, users can conveniently upload, track, and submit their expense receipts with the software’s automated workflow. Administrators can obtain these reimbursement receipts through a streamlined process to authorize the claims and check for any violations of corporate policy. Additionally, the software helps businesses monitor the money their workers spend on company business.

Expense Management Tools FAQs

What is the best expense management tools

Your needs and budget will determine which cost-tracking software is ideal for you. While we have compiled a selection of the most well-known and well-designed expense management systems, the best system for your company will ultimately depend on its specific nature and requirements.

What is the going rate for expense report making programs?

Expense tracking software is typically billed on a monthly per-user basis. Products typically cost between $5 and $8 per user per month, with special pricing available for companies and larger businesses.

What is the benefits of using a program to track and manage your spending.

Businesses and their employees can save time and effort using cost management software that automates the process of recording, attributing, and reimbursing employee expenses. It’s a time-saver for managers and accountants because it streamlines and centralizes the management process and can automate mundane manual operations.

  1. BUSINESS EXPENSE CATEGORIES: Best 2022 Business Expense Categories to Consider
  2. Expense Management: Definition & 13 Best Expense Management Software
  3. HOUSING EXPENSE RATIO: What It & How To Calculate it
  4. REVIEW MANAGEMENT TOOLS: Meaning, Uses, And  Best Tools

Reference

0 Shares:
Leave a Reply

Your email address will not be published.

You May Also Like