What to consider when purchasing an Expense Management solution?
Thankfully, manually managing business and travel expenses is becoming a thing of the past – we all know that manual processes are both time consuming and tedious.
There are many advantages to a digital and automated solution, but it is important to choose wisely. There are several solutions on the market that digitise and optimise the process – from purchase to payout. But what should a company consider when purchasing an Expense Management solution?
What to keep in mind and which features are important?
- The solution must have both app and web support for reporting expenses. It doesn’t matter if a receipt is digital, has been emailed to you, or is the plain old paper variety, your new system must be able to accept and process all receipts.
- Expense management includes receipts, entertaining, per diems, company card purchases, and mileage. That’s why it’s vital that the service supports all of these components in one solution, one app.
- Ease of use is key to getting employees to embrace and use a new service. Make sure to choose a solution that doesn’t require staff training.
- The new service should have automated features that help the users, for instance, analysing receipts and automatically filling in the category, amount, VAT, currency, and so on.
- Accounting regs are a jungle and no one can keep track of all of them, make sure that the service complies with your country’s regs. The service should also make manually calculating allowances and mileage obsolete by going the calculations for users.
- Is the service optimised for employees who report their expenses, the bosses who have to approve them, and the administrators who do the payout?
- If you have company credit cards, make sure you can integrate them into the new system for easy reporting.
- Digital mileage reporting is becoming more and more common, reduce reporting by integrating it in the service.
- It should be possible to integrate your new service with both your payroll and accounting systems. Integration ensures that expenses paid by company cards are reported to the accounting system and that mileage, per diems, and expenses are reported to the payroll system.
- Scalability is vital. As your company grows, the system must be able to grow with you. If your enterprise comprises multiple companies and divisions, the system must be able to manage all of it.
- Your new service provider must have dedicated customer service which you can contact by chat, email, and phone.
- And your new service provider has to be able and willing to continuously develop the service and make the service the top priority.
And finally, some good-to-haves
- Support for all payment types and currencies.
- Notifications when expenses have been reported more than once, or when information is missing.
- The ability to manage multiple companies with one login.
- Customisable approval processes and temporary approvers (for vacation, leave, etc).
- Support allowances for congestion taxes, food, fuel, and more.
- Statistics and reports that give you a complete overview of travel costs.
Many organisations experience challenges with their internal expense management routines. They are often time-consuming and tedious and often end up taking unnecessary time away from the core business.
Surveys show that you as an HR manager play a crucial role in whether or not your company’s digitisation journey will be successful. New digital tools create the conditions most organisations need to become more efficient.
Expense management is, for many, considered a time-consuming and tedious process. It takes time, effort, and patience for employees to find receipts, fill in all details, staple receipts on paper and submit the expense claim.