20-09-2017, 04:29 PM
The expense management refers to the systems deployed by a company to process, pay and audit the expenses initiated by the employees. These costs include, but are not limited to, expenses incurred for travel and entertainment. Expenditure management includes the policies and procedures governing such expenditure, as well as the technologies and services used to process and analyze the data associated with it.
Software for managing claims, authorization, audit, and reimbursement processes can be obtained from organizations that provide licensed software, an implementation and support service, or, alternatively, software-as-a-service (SaaS) providers. SaaS providers offer on-demand web-based applications managed by a third party to improve the productivity of cost management.
The automation of expense management has two equally important aspects: the process followed by an employee to complete a claim for expenses (for example, registering a hotel receipt or submitting mobile phone records) and activity accounts or financial personnel commit to process the claim within the financial system.
Typically, a manual process will involve an employee completing an expense report with paper, spreadsheet, or graphical user interface that is then forwarded along with relevant tax invoices (receipts) to an administrator or other controller for approval. Once the manager has approved the claim, it will be forwarded to the account department for processing. The account staff then key each item of expenses into the company's financial system before submitting the claim and receipts away. In an implementation of Software as a Service, these processes are widely automated and the processes of sending and approval are done electronically.
Automation of expense management is the means by which an organization can significantly reduce transaction costs and improve management control by recording, calculating and processing corporate expenses. Independent research evaluating the use of automated expense management systems has confirmed that the cost of processing a claim for expenses is reduced as the level of automation increases.
Software for managing claims, authorization, audit, and reimbursement processes can be obtained from organizations that provide licensed software, an implementation and support service, or, alternatively, software-as-a-service (SaaS) providers. SaaS providers offer on-demand web-based applications managed by a third party to improve the productivity of cost management.
The automation of expense management has two equally important aspects: the process followed by an employee to complete a claim for expenses (for example, registering a hotel receipt or submitting mobile phone records) and activity accounts or financial personnel commit to process the claim within the financial system.
Typically, a manual process will involve an employee completing an expense report with paper, spreadsheet, or graphical user interface that is then forwarded along with relevant tax invoices (receipts) to an administrator or other controller for approval. Once the manager has approved the claim, it will be forwarded to the account department for processing. The account staff then key each item of expenses into the company's financial system before submitting the claim and receipts away. In an implementation of Software as a Service, these processes are widely automated and the processes of sending and approval are done electronically.
Automation of expense management is the means by which an organization can significantly reduce transaction costs and improve management control by recording, calculating and processing corporate expenses. Independent research evaluating the use of automated expense management systems has confirmed that the cost of processing a claim for expenses is reduced as the level of automation increases.