One of the most crucial elements to running a successful business is keeping a close eye upon profit and loss. An integral part of this is careful expense management. Expenses may include mileage, travel, entertainment and the cost of hosting meetings.
What system should be used to manage business expenses?
It is therefore very important that there is a secure and reliable system in place to manage and review expenses. Staff training should incorporate guidance regarding what comprises legitimate expense and management should also be clear about this when authorising them. Company credit cards should routinely be paid off each month.
It is absolutely imperative that detailed records are kept. When companies are just starting out, this tends to be carried out on a smaller scale and very often in a slightly disjointed manner. However, as the business progresses, it becomes necessary to employ a more cohesive method.
There are some useful programmes available to handle all aspects of expense management. From paying staff to evaluating and validating costs, these usually reduce the number of employee hours required to complete the process, which can be complex and very time consuming. When purchasing any expense management solution, ensure it is fully licensed and look for a company who offer comprehensive support and aftercare services For help with business Expense Management visit CIPHR.com.
What are the benefits of using an expense management solution?
Using a computerised online programme considerably reduces transaction charges. In addition, the complete transparency will minimise wastage and flag up areas for improvement. Nearly all companies employing such systems will report savings and increased accuracy.
It is possible to programme software to recognise invalid expenses and also to set limits for certain types of expenditure. Data entry errors can also be more easily avoided.
Reports can be generated to evaluate information entered. Continuous analysis of data will help to improve overall economic success of the company. Historical data can be used to track company performance.
Inaccuracies and potential misuse of the expense scheme can also be easily highlighted. Managers are able to monitor activity in real-time, conduct effective risk management and promote compliance.
For those companies venturing into the international arena, expense management programmes are able to automatically calculate exchange rates and convert expenses into comparable data. It is also easy to view all types of payment.
Despite the fact that implementing such a system can be time consuming, in the long term they are nearly always found to be financially beneficial. What’s more, expense management systems foster company-wide efficiency as they promote administrative organisation and precision. Many programmes can be organised so that employees are granted access to varying features and functionalities, depending upon their status within the company.
Many companies, especially those on the smaller side, consider time and expense management systems a needless cost. However, the savings made in the long term typically far outweigh the initial expense of putting a system into practice.
In addition to handling all aspects of expense and time management, software solutions will help companies to remain up to date and compliant with some of their legal responsibilities.