What to Look for in a Corporate Expense Management Tool

For small businesses, improved expense management can make a big difference in the journey to maximum growth and efficiency. After all, traditional expense reporting methods can slow everyone down with endless paperwork, little insight into spend, and the potential for costly errors. 

Modern corporate expense management tools can help. 

Let’s explore how these solutions can transform your workflow by automating approvals, deterring overspending, and providing complete transparency. With the right tools in place, your team can spend less time on paperwork and more time on what matters: growing your business.

What is Corporate Expense Management?

Corporate expense management is the process of controlling, tracking, and reporting business-related expenses to help ensure they stay within budget and comply with company policies. These expenses include business travel, meals, office supplies, etc.

Traditional Expense Management Methods

Historically, expense management involved manual tasks like filling out paper receipts and spreadsheets and relying on approval chains for each submission. This process was time-consuming and prone to errors, requiring finance teams to chase down incomplete information and sort through stacks of receipts. 

Managers had to review each expense manually, which led to delays and potential compliance issues. Traditional methods also made it hard to identify spending patterns, detect fraud, or adjust budgets in real time.

Learn more: Business Expense Manager: Excel Spreadsheets vs. Software.

Why Traditional Expense Reporting is Costing Your Business

Traditional expense reporting methods involve lengthy approval chains, manual data entry, and back-and-forth follow-ups with employees and managers. This process drains productivity, as finance and accounting teams and employees must navigate spreadsheets, receipts, and follow-ups. For small business owners, this wasted time and effort could be better spent focusing on operations and growth.

Another downside of traditional expense reports: Employees also often complete them outside working hours, resulting in rushed submissions, inaccuracies, and further approval delays. This frustration only worsens when companies don’t have real-time insights into spending, which limits visibility and makes it hard to track out-of-policy expenses, forecast budgets, or detect fraud.

Benefits of Automated Corporate Expense Management

The good news? Modern corporate expense management solutions can eliminate these hassles through intelligent automation. That makes reporting more accessible and provides companies with instant visibility into spend, helping them maintain compliance and control. Here’s how a tech-driven approach benefits your business:

• Policy enforcement at the point of spend: Automated systems allow businesses to set spending limits and approval guidelines in advance, preventing out-of-policy expenses from being approved.
• Real-time expense visibility: Automated tools provide finance teams with immediate insight into expense reports to help them promptly detect and resolve any issues.
• Employee productivity and satisfaction: By simplifying expense tracking, employees can focus on their primary roles without the distraction of manual reporting, reducing the risk of errors and delays.

Free Download: Corporate Expense Policy Template. 

4 Considerations in Selecting an Expense Management Solution

1. Business Size and Needs

Small businesses often prioritize cost-effectiveness and ease of use, while larger companies need advanced features like multi-layered approvals and robust reporting. Choose a solution that fits your company’s current needs and future growth.

2. Cost and ROI

A solution’s upfront and ongoing costs matter, as does its ROI. Automated solutions help save on manual labor costs and offer insights that lead to more strategic decision-making. Be sure to evaluate the long-term financial effect.

3. Customer Support and Training

Top-notch customer support is essential, especially during onboarding. A provider that offers comprehensive training and reliable support helps employees transition smoothly to the new system and ensures you’re maximizing its features.

4. User Reviews and Feedback

Check out reviews from businesses similar to yours. Honest user feedback can reveal each tool’s hidden pros and cons, allowing you to make a more informed decision.

Read more: Best Expense Management Software 2024: Top Solutions Ranked.  

Checklist: What to Look for in a Corporate Expense Management Tool

If you’re ready to streamline your expense management process, here’s a checklist to help you choose the right solution for your business:

___ Automation: Look for solutions that can automatically capture receipts, categorize expenses, and submit reports.

___ Real-Time Reporting: Choose a solution with real-time insights to track spending patterns and help ensure budget compliance.

___ Seamless Integration: A solution should sync effortlessly with your existing finance, HR, and ERP systems, such as QuickBooks or Xero.

___ User-Friendly Interface: Opt for an intuitive solution that employees find easy to use, which will help increase adoption and compliance.

___ Mobile Access: For employees often traveling, mobile access allows them to manage expenses and get real-time updates more easily.

___ Scalability: See that your solution can grow with your business, handling more users and transactions as you expand.

___ Security and Compliance: Expense data is sensitive, so prioritize a solution that offers robust security and compliance features.

___ Customization Options: A solution should allow customizations to fit your unique business needs, from policy settings to approval workflows.

Modern corporate expense management software for small businesses is more than convenient — it’s a competitive advantage. By automating manual tasks and providing real-time oversight, these solutions help cut costs, improve employee satisfaction, and maintain compliance. 

Ready for an expense management solution that ticks all the boxes? Book a demo.