If you haven’t taken the leap into automation yet, it’s likely that you’re still doing your expense tracking manually, using a spreadsheet system, expense codes, and bank statements. While this will get the job done, it’s time-consuming, outdated, and leaves far too much room for error.
Small business automation is the way of the future, and automating your expense management is one of the best ways to begin the transition. Here’s a look at some of the benefits this shift can bring to you and your business.
What Is Expense Management Automation?
Expense management is the process of categorizing employee spending, tracking the use of business funds, and ensuring employees are reimbursed quickly. Automating this process eliminates the need to retain paper records and prevents you or your staff from spending hours creating and editing formulas and spreadsheets.
Automated small business expense tracking allows employees to capture images of their receipts with their smartphones and upload them using a mobile app. The system then quickly compiles all of the information into an expense report and submits it directly to your finance department.
Top Benefits of Expense Management Automation
While it’s easy to appreciate the time savings you’ll enjoy by automating your employee expense tracking, the benefits don’t stop there. The right system can also save you money, protect you against expense fraud, and give you more control over your finances. Let’s take a deeper dive into four of the top benefits created by expense management automation.
1. Cost Efficiency
Small business automation typically comes with an upfront cost, which is one of the reasons why owners are often hesitant to make the change. However, the time savings and risk reduction you’ll enjoy will quickly offset any initial investment you need to make.
Most expense management automation systems are easy to set up and have a very small learning curve. You should be able to link the system to your credit card, allowing it to automatically import your data. This reduces the time needed to create your reports and decreases manual errors.
2. Increased Spending Visibility
Not only does automation simplify your accounting, but it also gives you the information you need to make smart business decisions. Whether you’re considering taking out a business loan or making changes to your travel and expense policies, having real-time data at your fingertips can make a big difference.
The details in your expense reports can also help you identify opportunities to negotiate pricing with your suppliers, identify spending trends, and recognize and eliminate areas of inefficiency.
3. Protection Against Expense Fraud
By eliminating the manual entry process, automated expense management helps prevent both falsified and misinterpreted information. It also makes it easy to see situations where vendors may have overcharged you and allow you to quickly detect if your data is compromised.
These systems are often programmed to automatically identify duplicate entries and allow for customized workflows including a double review process. This further ensures that all of your reimbursements are both valid and accurate.
4. Improved Compliance
It’s critical for businesses that allow for employee expense reimbursements to have enforceable expense policies. Manual entries make it easy for out-of-policy transactions to slip through, resulting in business reimbursements for expenses that shouldn’t have been allowed.
If violations occur, your expense automation system will automatically notify the submitting employee. Your team can also check the submission, then either approve or reject it with just a few clicks. This creates an opportunity to educate your employees about your expense policies, improving future compliance.
Save Time and Take Control of Your Business Finances
Automating your small business expense tracking is a major step toward taking control of your business finances. If you’re concerned about the upfront cost of implementing a new system or you need funds for additional business upgrades, Zinch is here to help. Contact us at (714) 500-6622 to learn more about your options. You could qualify for up to $250,000 in just 24 hours.
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