What is Expense Management?
Expense Management refers to the tracking of employees’ spending and the reimbursement of these incurred costs by the company. In essence, as long as the expenditure is connected to the business, it can be reimbursed. These costs can often include travel expenses, entertainment, and articles purchased for the company’s use.
Of course, not every single expense must be reimbursed – Which may lead to the company going bankrupt is not too long! To make sure that companies do not go overboard with paying back employee bills, while simultaneously ensures that employees do not take advantage of the reimbursement scheme. Expense Management also encompasses the procedures and policies that can put a cap on these types of spending. For example, if an employee is given a daily travel allowance, the Expense Management process ensures that the employee is not paid back for an amount that exceeds their limit.
Why is Expense Management important?
For companies to be successful, they must pay their outstanding dues in a timely manner. These dues include not just expenses incurred by the company itself, but also bills of employees who spend for the company. When Expense Management processes are effectively put in place, companies can arrange for refunds and reimbursements in a swift and precise manner.
Furthermore, the profits you make as a business are, without doubt, the most important factor in staying afloat. If you wish to protect your earnings, while giving your employees the chance and freedom to making business-related payments, it is best to create and adhere to transparent and comprehensive guidelines and strategies. That is why, with the right process in place, companies can effectively track their outflows, validate that their employees are not misusing the system, and if they are, take immediate remedial measures.
Advantages of tracking and managing employee expenses:
1. By reimbursing all business expenses, you can take full advantage of tax deductions offered by the government.
2. You can develop more accurate budgeting and forecasting based on the inflow and outflow of capital.
4. You can also minimize business expense fraud, which includes: mischaracterized expenses, overstated expenses, fictitious expenses, and multiple reimbursements for the same expense.
Expense Management Automation
In short, Expense Management automation helps companies to systemize an arduous and possibly tedious process, gain better control over individual employee spending, and in the process minimize any possible errors or discrepancies that may arise. The software also ensures a dependable way of tracking (be it through expenses or notifications), quicker reporting, and strong compliance with company regulations. As the level of automation goes up, the costs required to process an expense claim go down. Not to mention that the amount of paper used also reduces, together with the amount of time taken to analyze each claim.
The Expense Management Automation system also provides analytical tools provisions that help companies make better decisions with regards to future spending. By accurately reporting all expenses and reimbursements, the system helps companies maintain liability and compliance.
How does Expense Management Automation Work?
1. The employee submits a reimbursement claim
2. The managerial/financial department decides whether to approve or deny those claims
3. If approved, the repayment of the claim will be scheduled.
4. Lastly, the employee will obtain his reimbursement.
StashFin Employee Expense Management Program offers a secure platform in which you can gather all of your employee expenditures. You can fund, track and manage them from any mobile device, in a quick and easy way! StashFin EEMP is a zero paperwork and 100% compliant approach to managing employee tax benefits and allowances. Offer your employees more savings and convenience. Managing tax-saving reimbursements was never this easy before.
The following are the features and benefits of StashFin’s Employee Expense Management Program:
- The entire registration and set-up process is digital – no paperwork hassle!
- You can track all of your employees’ expenditures whenever you need to.
- Employees can save receipts through their smartphones – That is right, you can download the StashFin app on your mobile device and track all income and expenditure through that!
- Companies can change limits and policies as and when necessary.
- Our system can also mark claims that seem to violate policies – to be taken up with the audit department.
- Schedule and execute reimbursement payments.
To learn more about the Employee Expense Management Program, visit StashFin, the leading online lending marketplace that offers financial products!