Expense Management is the Core of a Business

This article is aimed at managing and financial directors to provide a new perspective on business expense management. We will explore how processes such as budget control and digital timekeeping can serve as tools for creating more holistic experiences. 

Every business spends money to make money, whether through a long-term investment like software or a one-off budget to outsource individuals for a specific project. In either case, expenses must be documented to track ROI and ensure the sustainability of the business. However, a responsible approach to expense management delivers more than just revenue; it's the biggest contributor to employee satisfaction.

Why Is Expense Management Important?

Expense management is crucial because it enables you to monitor the money leaving the business and compare it against the revenue generated. Additionally, it supports team management and boosts morale.

The key factors that keep your teams happy are much simpler than organising frequent team-building activities. Timely payments, coverage of travel expenses, swift holiday approval processes, and the availability of tools will earn you their loyalty and best efforts much quicker.

Path to a Better Expenditure Control 

The best way to simplify expense claims is to treat project management as a tool. Being organised in tracking both internal processes and ongoing work provides you with full visibility of your financial health. Since project management serves to control budget and resources, it’s also effective for tracking your expenses. It can even be used to forecast them. Moreover, this approach is more convenient than paper receipts.

Once a project brief becomes a comprehensive timeline, it will be easier for you to evaluate how much workforce will be needed to deliver the results. This will inform you whether you need credit cards to outsource personnel, invest in resources, or arrange travel accommodations.

Having visibility in advance allows you to prepare ahead of time. This includes hiring freelancers to support the team if they are expected to be short on time. Sorting out relevant resources before you need them can help avoid roadblocks and delays, ensuring smoother processes. Additionally, travel arrangements are always more budget-friendly when managed well in advance.

Digital Transformation of Expense Management

While the above sounds great in theory, putting it into practice may be complicated, especially if your project management go-to for employee expenses is Excel spreadsheets. However, in this era of rapid digital transformation, the market is currently filled with highly intuitive project management systems.

To better manage expenses through project management, you should adopt a SaaS (Software-as-a-Service) system. These systems are specifically designed for the task at hand, and moving forward, we will explain how.

Exclusion of Human Error 

SaaS platforms are popular because they leverage business intelligence. This drastically decreases the rate of human error. In financial matters, mistakes can be particularly costly. Using less advanced technology, such as Excel, exacerbates the issue. Specifically, it’s challenging to detect an error, let alone identify where it has occurred.

Most project management solutions allow you to import existing Excel sheets, ensuring a quick, smooth, and error-free transition. A nice addition is that most cloud-based SaaS solutions are also full of integrations, enabling you to easily sync various pieces of software you may already have in your arsenal.

Cloud software is particularly effective for centralised internal alignment. Multiple users can access it simultaneously in real time via a browser on any device. Certain platforms, like Timesheet Portal, also offer mobile apps.

Automation Enables Efficiency 

Streamlining processes where possible saves time. And, as every business person knows, time equals money. Different expense management solutions offer various options for processes they can automate. This means you should research the options thoroughly to identify the one you need.

For instance, our products facilitate the automation of the following:

• Payroll preparation;

• Commission calculations; 

• Invoice creation, distribution and follow-up;

• Inclusion of rechargeable expenses;

• Calculation and application of mileage rates in multiple currencies;

• Overtime payment calculation.

Benefits of Expense Management Software

Due to their close involvement, project management software can be viewed as expense management software. However, each system is unique in its value proposition. The automation and implementation of BI in a project management tool only scratch the surface of what a dedicated expense management platform can offer you.

To summarise its benefits, it enables faster and simpler processes, free from human error. The software allows you to submit and approve expenses, and it also presents them in an easy-to-read expense report. Additionally, it enhances visibility and boosts overall operational productivity. 

Nurturing Relationships and Building Trust

Let’s return to our starting point - the employees. Adopting and implementing SaaS technology for expenditure management ensures you never miss a payment or reimbursement for your staff. This enhances your performance as an employer, establishing consistency that builds the trust your staff has in you.

In addition to your team knowing they are cared for and working with a responsible business, not having to perform these tasks manually will also free up a significant amount of your time. This time can be used to establish a more personal human rapport with your team.

Summary

Businesses are most successful and profitable with happy, driven employees. The common misconception is that ensuring staff happiness requires outlandish measures, such as a variety of perks or social activities. However, the truth is much simpler. The key to keeping your staff satisfied and cared for lies in being responsible when managing expenses.

While it may sound tedious, every managing director or financial director understands that effective expense management is the cornerstone of success. However, it doesn't have to be dull. In today's world, we have a multitude of solutions that simplify budgeting according to your needs and those of your team.

Would you like to learn more about how SaaS can elevate your business in ways you didn’t know existed? Contact us today.