One of the most difficult business tasks was keeping track of employees' spending on company transactions and activities. Employees and accounting clerks usually took a lot of time to submit, read, and look over expense claims.
Luckily, many companies in Australia have already started using expense management software and apps to help them automate their financial processes. To automate your finances more, you might want to check out these sites about expense software solutions in Australia and other sites like them.
What is Expense Management Software?
The expense management application is a computer program that helps employees of a business organization manage, track, and report their work expenses without having to do a lot of manual, utterly pointless, and repetitive work.
It's a piece of software that replaces the paper journals and reports that accounting clerks used to keep and make for all of the business's employees' expenses. The expense management system also eliminates the need for employees to fill out spreadsheets when they want to get reimbursed for expenses they paid for with their own money for official or company business.
Before expense management software was made, employees had to send in spreadsheets with information about their reimbursable expenses. But they still had to show receipts to prove they spent that much.
How Can it Be Employed in Financial Automation?
Here are a few ways that an expense management system can help automate finance:
Keeping Track of Expenses
Keeping track of an employee's expenses is one of the most boring, time-consuming, and repetitive things they must do. This used to take up a lot of time at the company as both the employee and the accounting staff had to keep track of each person's and each department's expenses.
In the past, employees had to report their expenses at the end of each work period (week, month, quarter). The finance department would then have to put these assertions into their journal articles on expenses and decide if the receipts backed up the claims for reimbursement.
The receipts should show items the employee was allowed to buy or pay for and then be reimbursed. Finance automation can eliminate all the paperwork and spreadsheet files needed for this manual and time-consuming process by using software to manage expenses. Instead, employees can directly enter their expenses into the software for managing expenses.
Providing Scannable Copies of Receipts
Another tiresome, time-consuming, and cumbersome aspect of expense management is the disposal of money allocated to workers as part of their budget for corporation activities and transactions. For instance, some employees, like salespeople who go out into the field, get monthly money to pay for transportation.
This is especially helpful for people in marketing and sales who have to move around and talk to many people to sell the company's products. When a business doesn't have expense management software, employees usually have to show the original printed copies of receipts to back up their claims.
With software for managing expenses, employees can scan and upload their receipts to support their expense accounts. The scanned files can be saved and kept in their user profiles in the expense software suite.
This keeps a lot of time for the staff and the accounting clerks because they can quickly look at the scanned copies. So, accounting staff can utilize the app for managing expenses to read scanned receipts and figure out what they are for.
Notifications and Approval
Getting approvals is one of the most important parts of managing expenses, and a software application can help automate finance. Claims for reimbursement were made because it took a long time for their request for a budget for company expenses to be read, looked over, and approved by the managers who could pay for the costs.
Some costs could be paid immediately because they were for small amounts. As long as the expenses were for things that were allowed by company policy, the claims were in final order without much idea or discussion.
But some expenses must be carefully reviewed by managers and controllers who approve them. This occurs when the costs are very high or involve expenses that aren't explicitly allowed by corporate policy.
With software for managing expenses, the employee's expense claim could be sent straight away to the supervisor, who would then have to read it and decide whether or not to approve it. The manager could also review the scanned copies of receipts saved in the app. The manager has to decide whether or not to approve the expense.
The software app for managing expenses can also send alerts to the manager who has to endorse the claims. Instead of waiting for an answer from the manager, the employee who decided to post a claim for expense approval can also use the app to let the manager who will approve the claim. The user can also set up the app to let them know if their manager has already decided on their request.
Uploading and Depositing Funds
Lastly, an expensive software suite app can be used to make it easier to upload and deposit money into an employee's account after they ask to be reimbursed for expenses.
The app already takes care of the expense entries, scanned copies of receipts that support a claim, notifications, and approvals, so the accounting and finance clerks in charge of cash would have to upload and deposit the money into the employee's account. Then, they could inform the employee through the app that the cash amounts they were paid back have been posted and deposited into their accounts.
As we've already talked about, expense management apps have been very helpful in making it easier for employees and accountants to track and handle expenses. With this, businesses can boost their output while lowering the cost of different resources.