The Importance of Automating the Expense Management Process

May 22, 2019

Expense management automation.

You’ve heard of it.

You’re even intrigued by it.

But until now, you’ve also been fairly skeptical: Would automating the expense management process really help improve my bottom line?

The Importance of Automating the Expense Management Process

(Pixabay / rawpixel)

While it theoretically sounds like an excellent idea to automate your expense processes, it’s difficult to convince yourself or others to jump ship without concrete figures to demonstrate ROI.

With that said, the conventional approach to expense management processing costs businesses huge amounts of money, time and inefficiencies – preventing them from reaching their full potential.

According to research published by the Aberdeen Group, SMEs with under 1,000 personnel are spending, on average, $20.65 for manually processing a “single” expense report. The same research reveals that an average of 1.5 expense reports are submitted per employee, per month.

So, for an SME with 50 employees, a manual expense management process costs up to:

$20.65*(50*1.5) = $1548.75

That amounts to $18,585 per year.

From an external perspective, the SME can save $18,585 in costs annually by automating its expense management process.

If you haven’t been confronted by the finance department yet – or if documented costs exceed savings by a high margin – consider the bottom line advantages that automation software can provide.

Benefits of Cueing Expense Management Automation.

Besides cost reduction, automating the expense management process delivers the following benefits:

  • Simplifies Processes.

While automation technology can’t lower bills itself, it can streamline the processes in ways that keep costs to a minimum.

Automation will ensure the bills are accounted for and settled on time, saving companies from late filings, reducing the time spent on manual invoicing, and enabling businesses to gear valuable time towards core functions.

  • Improves the Accuracy of Data Input.

Manually tracking and reporting can often create room for error. People who are manually entering numbers in Excel can easily modify, forget or even skip important details.

Automated expense management software can help companies avoid such scenarios by leveraging automation rules and robust parameters.

For example, it can notify users when amounts go above preset thresholds or when certain prices show a great degree of variance from previous months’ entries.

  • Ensures Compliance.

When staff members are confused about your expense management policy, they may unknowingly violate it.

While automation shouldn’t be used as a “Band-Aid” for internal hiccups, it can help educate employees in a personalized manner using systems and technologies that they’re familiar with.

Through an automated system, you can write custom rules for your company’s expense management process. This helps prevent violations that would otherwise damage your financial standing.

Solutions Need to Align with Businesses.

Switching to a user-friendly expense management software that automates everything from tracking bills to reporting T&E (travel and entertainment) expenses is a win-win for everyone involved. Your organization gets to prevent errors, enforce compliance and, most importantly, save money.

The easy way to get started is to look at what everyone else is using and copy them. However, most businesses are not utilizing the best expense management software.
What they fail to realize is that the one-size-fits-all solutions can never match the automation power and effectiveness of the industry-specific range.

If you’re looking for telecom expense management, MobiChord offers a fully scalable and customizable solution. It automates tedious, manual tasks like reporting, ordering and allocations. This affords greater accuracy, greater control of expenses, and greater freedom from the minutia so that you can focus on the pressing business of growing your company.

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