This article is aimed at managing and financial directors to give them a new perspective on business expense management. We will explore how processes such as budget control and digital timekeeping can be used as tools for creating more holistic experiences.
Every business spends money to make money. Be it a long-term investment such as software or a limited one-off budget to outsource people for a specific project. Either way, the expenses must be documented to keep track of ROI and ensure the sustainability of the business. However, a responsible approach to expense management processes delivers more than revenue. It’s the biggest contributor to employee satisfaction.
Why Is Expense Management Important?
Expense management is important because it helps you keep track of money leaving the business and compare it against the revenue generated. Additionally, it helps with team management and morale.
The key things that keep your teams happy are much simpler than organising frequent team-building activities. Being paid on time, coverage of travel expenses, swift holiday approval processes and availability of tools will earn you their loyalty and best effort 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 is a way to control budget and resources, it’s also great for tracking your expenses. It can even be used to forecast them. Not to mention, 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 tell you whether you will need credit cards to outsource people, invest in resources or accommodate travel arrangements.
Having such visibility in advance allows you to prepare ahead of time. This includes hiring freelancers to support the team if they are predicted to be tight on time. Sorting relevant resources out before you need them can help avoid roadblocks and delays, ensuring smoother processes. Not to mention, things like travel arrangements are always more budget-friendly when handled 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, living in times 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 designed specifically for the task on hand, and moving forward we will explain how.
Exclusion of Human Error
SaaS platforms are popular because they are powered by business intelligence. It serves to drastically decrease the rate of human error. When it comes to finances, mistakes can be particularly costly. Using less advanced technology like Excel makes matters even worse. Namely, it’s particularly hard to spot that there’s an error, let alone locate where it has occurred.
Most project management solutions allow you to import the existing Excel sheets, therefore 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 different pieces of software you may already have in your arsenal.
Cloud software is also particularly good for centralised internal alignment. Multiple people can access it simultaneously in real time, using a browser on any device. Some platforms, such as Timesheet Portal, are also available as mobile apps.
Automation Enables Efficiency
Streamlining processes where possible wins back time. And, as every business person knows - time equals money. Different expense management solutions have different offers for processes they can automate. This means you should research the options thoroughly to identify the one you need.
For example, our products enable automation of the following:
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Payroll preparation
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Commission calculations;
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Invoice creation, distribution and follow-up;
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Inclusion of rechargeable expenses;
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Calculation and application of mileage rates in multiple currencies;
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Overtime payment calculation.
Benefits of Expenses 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. Automation and implementation of BI in a project management tool are barely scraping the surface of what a designated expense management platform can do for you.
To summarise its benefits, it enables faster and simpler processes, free of human error. The software allows you to submit and approve expenses, and it also puts them in a digestible expense report. Additionally, it improves visibility and increases overall operational productivity.
Nurturing Relationships and Building Trust
Let’s go back to our starting point - the employees. Adoption and implementation of SaaS technology for expenditure management allow you to never miss a payment or a reimbursement to your staff. It enhances your performance as an employer, establishing consistency that builds the trust your staff has in you.
In addition to your team knowing they’re looked after and working with a responsible business, not having to perform these tasks manually will also free up a lot of your time. And that time can be used to establish a more personal human rapport with your team.
Summary
Businesses are most successful and profitable with happy and driven employees. The common misconception is that ensuring the happiness of the staff takes outlandish measures. Such as a variety of perks or social activities. But the truth is much simpler. The key to keeping your staff satisfied and looked after lies in being responsible when it comes to managing expenses.
While it sounds tedious, every managing director or financial director understands that good expense management is the pillar of success. And it does not need to be tedious. In the modern world, we have a plethora of solutions available that make it easier to plan your budget according to your and your team’s needs.
Would you like to find out more about how SaaS can elevate your business in ways you didn’t know existed? Get in touch with us today.
