Is expense management essential in a modern organisation?

expense-management

Modern organisations need to effectively manage their expenditure to remain profitable in today’s competitive environment. Employee expectations demand better flexibility and automation for the expense management process.

We have observed that a lot of companies are using an expense management system that is either based on spreadsheets or relies heavily on manual processes. Such expense management systems can increase employee frustrations, fail to meet stakeholder expectations and add significant costs to the business.

What employees seek

Employees are happier when they get reimbursements processed faster and have less administrative tasks to do. In this technological era, staff do not want to follow paper-based expense reporting and receipt submission. They would prefer an automated expense log and review process that reduces the time they need to spend on administrative tasks allowing them to focus on their core business responsibilities.

What organisations want

According to the Aberdeen “Your 2013 Guide to Travel and Expense Management” report, the top ‘travel and expense management’ challenge is the organisation’s poor visibility into travel and expense spending and compliance at a staggering 51%; while almost 30% organisations feel it is vital to eliminate manual/paper-based processes.

To overcome the major expense management challenges, modern organisations need an effective expense management solution that provides them with the ability to co-ordinate, manage and appropriately categorise the expenses. The solution also needs to have an easy approval/amendment process enabling reimbursement processing quicker. The solution should be capable of providing better visibility into the spending structure to enable better resource planning and allocation.

How an effective expense management solution delivers

An effective expense management solution such as the Empower IT Project Expense Management Solution, automates the process of allocating, reviewing and managing expenses related to a project or activity. Accounts team can manage all the costing and analytics from a centralised repository that provides better visibility into the company’s expenditure; which in turn help businesses plan for the company’s future, maintain compliance and cash velocity.

Investing in the right expense management technology helps businesses support the growth of their employees and increase overall profitability. Contact Empower IT Solutions for peace of mind.