Why your business needs an expense management app

As any business leader or entrepreneur knows, managing business expenses efficiently is essential for financial health and operational control. Yet many companies, large and small, still rely on methods like manual data entry and spreadsheets, which can be time-consuming and error-prone. 

Transitioning to an expense management app can streamline processes, reduce administrative work, and provide real-time visibility into company spending. 

What is an expense management app?

An expense management app automates the process of tracking, submitting, and reporting expenses. It eliminates the manual entry of information, allowing businesses to manage their costs more efficiently. With features like real-time data, integrations with accounting software, and automated reporting, these apps provide a modern solution for managing company finances.

In addition, expense management apps integrate with other business systems, such as NetSuite or Xero, making month-end reconciliation faster and more accurate. This seamless connectivity guarantees that all financial data is synchronised in real time, which provides clearer insights into spending patterns and helps businesses make informed decisions.

Why traditional expense management no longer works

Using manual systems to manage expenses introduces several inefficiencies. In fact, 47% of finance professionals surveyed by Navan in early 2024 reported that they still handle expense reports manually, which can lead to reporting delays and inaccuracies. 

Manual entry is prone to human error, resulting in financial mismanagement and poor oversight. In a world where timely and accurate data is critical, these outdated processes are no longer sufficient.

Companies that stick to manual systems struggle with slow approvals, delayed reporting, and a lack of real-time insight into spending. This approach makes it harder to maintain control over budgets and forecast accurately.

Key features of a high-quality expense management app

Expense management apps come equipped with several essential features that simplify business operations. 

Here’s what you should look for:

Automated expense tracking

Automation minimises manual work and reduces errors. For instance, a modern expense management app should be able to capture and categorise expenses automatically, saving time for employees and finance teams.

Real-time data visibility

With access to live expense data, businesses can monitor spending patterns and adjust budgets proactively. Real-time insights improve better decision-making and prevent overspending.

Mobile accessibility

Expense management apps are often mobile-friendly, allowing business travellers to submit receipts and track expenses on the go. This eliminates reporting delays and guarantees timely approvals.

Integration with accounting systems

A high-quality app integrates seamlessly with accounting software like NetSuite or Xero, speeding up the month-end close process and delivering accurate financial reporting.

Customisable spend policies

You can set flexible rules within the app for different sets of employees and flag out-of-policy expenses automatically.

Multi-currency and global capabilities

Multi-currency support is crucial for businesses with international operations. Expense management apps enable global teams to manage expenses across currencies, simplifying global operations.

Key benefits of using an expense management app

Adopting an expense management app provides numerous benefits, from saving time to enhancing financial control. 

Here are some of the key advantages.

1. Time savings

Automating repetitive tasks like receipt collection and report submission reduces administrative work. This allows finance teams to focus on higher-level tasks, improving overall efficiency.

2. Increased accuracy

Automation reduces human error, which leads to more accurate data and compliance with financial regulations.

3. Real-time control

With real-time tracking, businesses can maintain tighter control over company spending and make informed decisions to optimise budgets.

4. Simplified compliance

Expense management apps automatically handle tax regulations and regional reporting, making it easier for companies to comply with standards like VAT-ready invoices for international transactions.

5. Cost control

Companies can prevent overspending by implementing proactive spend policies. The app also reduces the financial burden of manual processes, errors, and delayed reporting.

Choosing the right expense management app for your business

Depending on your company’s size and specific needs, several factors must be considered when selecting the right expense management app.

• Consider your company’s size and needs: A small business may have different requirements than a large corporation. Tailor your choice to your industry and scale so the app can handle your company’s unique workflows.
• Compare manual vs. automated systems: Manual systems can introduce delays and inaccuracies. In contrast, automated systems like expense management apps provide real-time updates and smoother workflows, improving financial control.
• Focus on integration: An app that integrates with your existing accounting systems will simplify your financial processes and provide more comprehensive reporting.
• Scalability: As your business grows, your expense management solution should grow with you. Choose an app that can scale and offer features that support your expanding operations.

Why Navan expense is the best choice

Navan Expense stands out as the best expense management solution for businesses of all sizes. With features like automated reporting, real-time visibility, mobile access, and multi-currency support, it’s designed to meet the needs of modern businesses.

Ready to improve your expense management? Request a demo today to see how Navan Expense can help your business thrive.