You don't have to spend money to manage money
We’ve all been there, travelling for work and attempted to pay for something with a company card only to have it declined. Or had to submit a receipt and had it rejected by the company’s expense policy because it wasn’t itemised. These pain points are all too common for employees when the expense management system doesn’t work.
For finance teams, the challenges can be even greater.
Manual expense processing can lead to wasted time and money, ineffective compliance due to increased risk of fraud and human error, difficulties in analysing costs and gaining visibility, and ultimately poor business decisions due to inaccurate data. These issues can all be solved with the right automated expense management tool, but finding the right one for your organisation can be a complex undertaking.
The proliferation of expense management apps and new fintech startups in the market makes it difficult to cut through the noise and identify the solution that best fits your business needs. With so many options available, the selection process requires a strategic and well-planned approach to ensure you invest in a platform that will drive efficiency, enhance compliance, and provide the analytics and insights you need to optimise spend.
The first step in finding the right expense management software is to conduct an internal assessment and clearly define your organisation’s needs and goals. Involve key stakeholders from the outset, as they will provide a more rounded perspective and help you consider all the important aspects.
Start by evaluating your current expense management processes and identifying the pain points. Consider factors such as:
Clearly differentiate between “must-have” features and “nice-to-have” features, as this will help you prioritise your requirements and evaluate potential solutions more effectively.
Once you have a clear understanding of your needs, the next step is to consider the key parameters that will shape your expense management software selection:
Budget: While an automated expense management solution may require a short-term financial investment, it will ultimately help you reduce costs over the medium to long term, including the hidden costs associated with business travel. Consider the potential return on investment (ROI) when determining your budget.
Technological Capacity: Assess your existing technological infrastructure and any constraints or limitations you may have. Ensure that your IT department is involved from the start, as they can provide valuable insights into the feasibility of integrating the new expense management system with your current software ecosystem.
Timeline: Determine how quickly you need to implement the new expense management solution. This will help you evaluate the onboarding process and support offered by potential vendors, as a smooth and timely implementation is crucial for user adoption and realising the benefits of the new system.
Engaging a diverse project committee is essential to the success of your expense management software selection. Involve stakeholders from key departments, such as IT, Finance, Accounting, HR, and any other relevant teams. This cross-functional collaboration will provide you with a more comprehensive understanding of the challenges and opportunities a new expense management platform presents.
The project committee should be responsible for the following tasks:
By involving a range of stakeholders, you can make a more informed decision that addresses the needs of all the end-users and maximises the impact of the new expense management system.
With your needs, goals, and project parameters clearly defined, you can now begin the process of evaluating potential expense management software providers. Start by compiling a list of vendors that offer the core features you require, and then delve deeper into the following areas:
Thoroughly evaluate each provider’s capabilities, user experience, and integration potential to ensure you select a solution that aligns with your organisation’s unique requirements.
One of the critical factors to consider when choosing an expense management platform is its ability to streamline the reimbursement process. Delayed or inefficient reimbursements can have a significant impact on employee satisfaction, morale, and retention.
Your chosen expense management software should have robust expense tracking and receipt scanning capabilities to effectively manage expenses and ensure timely reimbursements. Employees should find it easy to submit their receipts, and the platform should provide them with reminders to ensure a speedy reimbursement cycle.
Additionally, the software should offer automated approval workflows and integrations with your accounting systems to further optimise the reimbursement process. By prioritising this aspect of the expense management solution, you can improve employee satisfaction, enhance compliance, and gain better visibility into your organisation’s spending patterns.
While the functional capabilities of the expense management software are crucial, the user experience is equally important for driving widespread adoption and engagement. After all, the success of your new platform largely depends on how easily and willingly your employees embrace it.
When evaluating potential solutions, pay close attention to the following user experience factors:
By prioritising the user experience, you can drive higher adoption rates, increase productivity, and foster a positive perception of the expense management system among your employees.
Expense management software typically handles a significant amount of sensitive data, including employee information, financial transactions, and confidential company records. As such, it is crucial to ensure that the solution you choose has robust data security measures in place and adheres to all relevant compliance regulations.
When evaluating potential vendors, consider the following data security and compliance factors:
By prioritising data security and compliance, you can safeguard your organisation’s sensitive information, mitigate the risk of data breaches, and maintain regulatory adherence.
One of the primary benefits of implementing a robust expense management solution is the ability to streamline and automate various aspects of the expense reporting and approval process. When evaluating potential platforms, focus on the following workflow optimisation features:
Ensure the software can enforce your organisation’s expense policies in real-time, flagging any violations or non-compliant expenses before they are approved. This helps reduce the risk of fraud and improves overall compliance.
Look for a platform that allows you to configure and automate your expense approval processes, ensuring they align with your organisational structure and decision-making hierarchies.
The expense management software should provide comprehensive reporting and analytics capabilities, enabling you to gain valuable insights into your organisation’s spending patterns, identify cost-saving opportunities, and make data-driven decisions.
Ensure the platform can integrate with your existing accounting software, ERP systems, and other critical business applications, facilitating a smooth flow of financial data and streamlining the month-end close process.
By optimising the expense management workflow, you can drive efficiency, enhance compliance, and empower your finance team to focus on strategic initiatives rather than manual data processing.
The quality of the vendor’s customer support and the onboarding process can have a significant impact on the long-term success of your expense management software implementation. When assessing potential providers, consider the following factors:
By prioritising vendor support and a smooth onboarding experience, you can ensure a successful adoption of the new expense management system and maximise the long-term benefits for your organisation.
Choosing the right expense management software for your business is a critical decision that can have a significant impact on your organisation’s efficiency, compliance, and financial visibility. By following a structured, multi-step approach that involves key stakeholders, defining clear requirements, and thoroughly evaluating potential vendors, you can invest in a solution that meets your unique needs and drives tangible business value.
Remember, the success of your expense management platform ultimately depends on its ability to streamline processes, enhance the user experience, and provide the analytics and insights your finance team needs to make informed decisions. Take the time to carefully assess your options, prioritise your requirements, and partner with a vendor that can deliver a comprehensive, user-friendly, and secure expense management solution.