The Beginner's Guide to Expense Management and Solutions
There are some things inherent to a business that you cannot do without, regardless of whichever industry your company happens to be in. One of these things is finance. As entities that naturally deals with the spending and earning of money, businesses will constantly have to pay mind to financial issues and how to go about them. But money is an often touchy and complicated topic that is prone to many risks, both internal and external. That’s where corporate expense management comes in.
What is Expense Management?
Expense management is the related actions and processes that involve securing and recording your expenses. Expenses are anything that the business spends on to continue its operations: they can range from small expenses such as replacing small equipment in the office, to large expenses such as buying raw materials to mass-produce their goods.
Why is expense management so important?
Think about this: expenses take away from the net revenue of your business. The money you lose due to excessive expenses is money that could’ve been spent investing in your business. Expense mismanagement can arise from a variety of factors: miscalculating the value of expenditures, not properly recording expenses as they occur, employee abuse or mishandling of finances, and a whole host of other things. Some may be small, but if they add up, they can pose a serious threat to your business.
That’s why some companies are increasingly turning to expense management systems to help them prevent and accurately pinpoint expense mismanagement. If you’re a business owner, it might do you well to consider getting one for yourself, too.
What is expense management software?
Before their advent, expense management used to be done manually, through the storage and recording of data. But there are clear drawbacks to this, as it is not an airtight system and it is prone to forgery and misplacement of receipts. As expense management grows more sophisticated, then so do the tools we use for it.
Is it better than manual expense management?
Of course. The solution to handling expenses without falling victim to common drawbacks is to automate this process. Expense management systems like Volve have many features that allow for easier expense management, such as: real-time notification of requests for expenses, automated storing of receipt data, creation of expense reports and much more.
Interested in an expense management system? Try Volve. It uses the most advanced and cutting-edge technology for recording and reporting expenses.
