By having effective expense management in place, your company can keep finances in check, make any necessary updates, and inform decisions. The right expense management software is key here, too. With the right tech solution, your business can automate a lot of its spend management and ensure that real-time visibility is useful and easy to digest.
What is an expense management strategy?
Expense management strategy is a plan for managing business expenses in order to maximize process efficiency and reduce costs. An effective expense strategy should include any processes for tracking and monitoring expenses and feature the key controls you intend on implementing, like spend limits and blocks. It should also include strategies for reducing or eliminating unnecessary costs, and procedures for approving regular and unexpected expenses.
By implementing a comprehensive expense management strategy, businesses can break down all of the ways they incur expenses and ensure that the financial resources used to track and approve them are as effective as possible. First, they might consider how their expense policy will look for different activities and for different teams and senior leaders. Then they might consider how they will make payments and record (and reimburse) expenses. Finally, they will need to ensure that any payments and expenses are also correctly reconciled within their accounting software to ensure that cash flow is correct, and their business is audit ready.
What is expense management software?
Expense management software is a kind of tool that businesses use to automate and streamline their expense tracking and management processes. This type of software allows employees to easily submit, track, and approve expenses, while providing real-time visibility into expenses for managers and finance teams.
Why Is expense management software necessary?
Expense management software makes it easier to track, monitor, and manage expenses in real-time.
A spend management solution like Payhawk features both cards, easy-to-use expense management software and more, which allows businesses to automatically record all of their expenses whenever they make a payment. This real-time visibility gives businesses a complete overview of spending patterns and lets them pull the right levers in order to save money, make decisions, and close their month quickly.
Complete spend management with in-built automation also helps reduces the risk of fraud or errors that occur because of manual data entry.