As businesses expand, handling employee expenses can become burdensome, overwhelming, and time-consuming. The answer? Smart expense management software that can scale as you do. In this short guide, we'll explore the advantages of expense management software and highlight the crucial features to look out for when choosing the ideal solution.
Expense management software is a digital solution that automates and simplifies various aspects of tracking, reporting, analyzing, and controlling employee expenses while adhering to corporate policies or tax regulations. These systems enable organizations to eliminate manual procedures like data entry, sorting through paper receipts, and lengthy approval chains, instead replacing them with efficient workflows fueled by innovative technology.
Whether handling travel reimbursements or monitoring operating costs, expense management systems pave the way for better-organized financial records and data-driven decision-making processes. You should also expect your chosen tool to integrate seamlessly with your accounting or ERP software, facilitating easy synchronization between the systems and ensuring accuracy across all financial transactions and records.
Some popular components of expense management solutions include:
When searching for the best expense management software, it's essential to identify the features that meet your company's specific needs. In this section, we'll explore ten key features you should look for when evaluating different expense management systems.
A good expense management software should have an intuitive dashboard for easy navigation and understanding. It should offer a straightforward interface with quick access to critical financial data, like pending expenses and spending trends. Essential features include multi-entity management and a group dashboard, allowing the finance team to see all group expenses in one place without switching screens.
A mobile application is also vital since it allows employees to manage their expenses on the go. A good mobile app can streamline processes like receipt capture, receipt chasing, submitting reimbursements immediately upon purchase, approval automation, and more. Employees can manage their cards through the app and request additional funds when needed.
Automated approval process
Automation can simplify the often-complex approval process by enabling customizable spend approval workflows and controls based on your company's policies. This may include setting limits for daily expenditures or pre-authorizing specific expense categories or approval amounts.
Digital receipt capture
Eliminate piles of paper and ensure accurate record-keeping thanks to digital receipt capture. Robust expense software enables users to upload receipts effortlessly through their mobile devices or computers, significantly reducing administration time. Data capture and entry is time-consuming and expensive if done manually. But businesses can automate this and save valuable time with the right OCR technology.
If your employees often need to travel for work purposes, incorporating a mileage tracking feature within your online expense management system is pivotal. And distance tracking should be automatic or easy for employees to log. At Payhawk, our mileage feature means admins can set different rates for mileage based on country laws and business preferences.
Real-time reporting and analytics
Accessing insightful reports about employee and team spending habits and overall budgetary compliance can help decision-makers make well-informed strategic choices. One of the quickest wins is to stop wasting money on unused and duplicate business subscriptions.
Compatible with any accounting software
Ensure that your expense management software can seamlessly integrate with your existing financial systems. Compatibility enables a smooth data flow from one platform to another, streamlining processes and reducing manual data entry. With Payhawk, you can streamline your reconciliation process and achieve seamless data flow between our spend management solution and your chosen ERP or accounting software.
Multi-currency functionality is essential for tracking expenses if your company operates in various locations or deals with international clients. The software should automatically convert foreign transactions into your base currency, simplifying expense reporting and keeping financial records easily understandable regardless of where you incurred costs.
Automatic categorization of expenses and allocation of cost center data
Meticulous sorting and organizing are crucial when managing business expenses. An intelligent expense management solution will include customizable categories and facilitate automated categorization upon entry. This automation will then enable efficient allocation to relevant cost centers and align effortlessly with your organizational structure.
Automated tax calculation (VAT/GST)
An effective expense management solution should precisely compute VAT/GST for eligible expenses, ensuring tax compliance and simplifying cross-border transactions. This is especially important for modern organizations seeking to automate their accounting and financial processes while expanding abroad.
In your quest to find the best expense management software features, it's essential to understand the difference between stand-alone and all-in-one platforms.
Stand-alone expense management software
Stand-alone expense management software focuses solely on streamlining your business expenses processes – tracking receipts, automating approvals, generating reports, and other similar functions.
Choosing a stand-alone system has some advantages:
However, there can also be some drawbacks:
All-in-one software with expense management
On the other hand, all-in-one solutions provide a holistic approach in which an entire suite of financial tools is packaged together, such as corporate cards, multi-entity management, invoice management, and more – along with expense reporting capabilities under one software umbrella.
A few reasons why businesses opt for an all-in-one platform include:
Ultimately, the decision between a stand-alone or an all-in-one expense management software depends on your organization's needs, budget, and desired level of automation. Before choosing, you should thoroughly analyze each option and assess its compatibility with your existing platforms.
How should I choose expense management software for your company?
Selecting the right expense management software for your company is a critical decision. To make an informed choice, consider the following points carefully:
By comparing various expense management systems based on these factors and using relevant keywords such as expenses software or online expense management during product research, you can select the most suitable solution tailored to your company's needs and strategy.
The pros of Payhawk in a nutshell
How much does expense management software cost?
The cost of expense management software depends on several factors, such as its core features set, degree of customization required, number of users/subscriptions/licenses needed within your organization, and the training or implementation fees.
At Payhawk, we offer three different pricing tiers, and you can choose the right one for your business needs.
"Payhawk's functionality is way ahead of other solutions I've tried," Javier Gorena, CFO at Rentals United, says. "And, with many other tools, we find that as the volume of cards and transactions increases, the prices of the tool skyrockets. This can generate a huge cost as we carry out practically 10,000 monthly transactions and move between 4-5 million. With Payhawk, this isn't an issue - thanks to cashback, the price stays very attractive."
We have designed our new enterprise plan specifically for multinational enterprises using Oracle NetSuite, Microsoft Dynamics 365 Business Central, and Microsoft Dynamics 365 Finance. Its innovative features let multi-entity businesses take care of global expenses and corporate cards more effectively, boost spend control, and save time with finance task automation.
Book a demo and learn more about our comprehensive global solution and take control of your business expenses.
Whether you have tens, hundreds, or thousands of employees, we’re making your business spend work for you, giving you control over spending at scale with a single solution. Say goodbye to tedious finance tasks, and schedule a demo with us today.