Expense Management Software is a financial product used by businesses to process, pay, track, reimburse, and audit employee-initiated expenses. The employee-initiated expenses include car rental, flights, shipping of work-related items, lodging, meals, business calls, and more. The system provides maximum business insight by analyzing total expenditures and manages expense claims, repayment processes, authorization, audit, and services used to process and analyze the data. The software can help companies simplify and automate a business’ expense entry and monitor employee usage of the company’s financial services. It also tracks unnecessary expenditure.
The best expense management software system finds some similarities with spend management that deals with planning and monitoring procurement expenses such as raw materials, business services, or investments. Companies deployed expense management systems to ease, pay, and monitor costs incurred by employees. The system avoids paper trail, streamlines financial analysis and review, and reduces administrative effort. It is also used to invoice billable hours or reimbursable project expenses.
The expense management system includes a wide range of single-entry mobile apps for activities like check processing, accounting, complex double-entry systems, etc. The system enables employees to input expenses for approval through a browser or mobile application. Expense Management Software can be integrated with accounting software, payroll software, time tracking software, travel management software, and workforce management software.
Expense management tools are useful in procurement, budgeting, invoicing, and other financial processes. The system analyzes the overall company’s expenses, finds cost-saving opportunities, and controls excessive spending. The primary users of the software are employees who submit their expenses, administrators who review and approve employees’ expenses, and accountants who balance the general ledger.
Users of Expense Management Software
Expense management software systems can be used by a variety of individuals within a broad range of industries. Different types of employees can derive benefits from this software.
Working people or employees are the biggest users of expense management software, mostly those who travel frequently. Occasional travel expenses can be handled using this software, although this may not support investing in expense management software.
Managers are responsible for approving employee expenses and reimbursements. There are some types of expenses that do not require approval, but one or more managers can only process other expenses.
Depending on the company’s expense policy and spending rules, certain types of expenses do not require permission. Supervisors can track the total expenditure by team or department to find opportunities to cut down the companies’ costs.
The contractors, consultants, vendors, freelancers, suppliers, and project managers who work for the organization but are not full-time employees can also use the software to apply and report travel expenses.
Accountants cannot often use expense management software but need expense information to reflect it in their account books properly.