Expense tracking software helps reduce the costs of processing expense reports
T&E spend management
is a complex process and entails compliance risks if not handled
well. Eliminating manual intervention in collecting and processing
receipts improves policy compliance and efficiency. Expense tracking
software does exactly that but with an added advantage of realizing
savings through reduction of processing time and costs.
Organizations need to
focus on compliance, cost reduction and employee goodwill when
processing expense reports; this spend category contributes to around
9% of the corporate budget and there is immense scope to bring this
percentage down. Travel booking and authorization, expense report
creation and submission, approvals, reimbursements, and back-end
reporting are typical functions that can be managed on a common
platform using expense tracking software. Automating expense
reporting transforms the process from a mere back-office function to
a business enabler that adds strategic value.
The priority for most
organizations is to improve management processes and drive value out
of business travel. Moreover, organizations need to build a
formidable analytics tool that magnifies the growth chart through
data-driven management of expenses. Expense tracking software
tabulates every transaction undertaken by employees when filing
expenses and helps maintain a central repository on corporate
expenses. This database is useful in assessing the current spend of
organizations and hone in on the specific steps that need to be taken
to reduce the costs of T&E. Visibility helps firms drive
strategic value from this complex spend category and make room for a
fixed budget to manage T&E.
Expense tracking software ensures quick reimbursements; this aspect of expense management is useful in converting variable costs into fixed costs. End-to-end automation reduces expense processing costs by 50% to 60%, improves compliance rates by over 35% to 40%, and helps link processes along all business units, departments and divisions (Aberdeen, August 2012). The solution improves business process efficiency and provides a standardized structure to process expense reports.