4 tips for choosing the best expense management software for your company

Expense management software is a rapidly growing market offering numerous different functionalities and features. Many companies have already recognized the advantages of organizing and managing their expenses online – however, choosing an online expense tracking software tool that matches the company’s needs is certainly not so easy. Below are 4 tips that will help you picking the right  

1. Consider issuing own prepaid cards for business expenses

Many employees have to pay their hotel, business dinners or office supplies in advance with their private money or with an corporate credit card. Both solutions cause a big problem for many financial managers:

The forms for cost refunds as well as the bank statements are only accessible at the end of the month or even more delayed. These long periods of uncertainty over the current overall spendings makes it difficult to plan future expenses and to maintain an overview.
A clear tendency becomes apparent that companies benefit strongly from prepaid business cards that are connected with an expense management software. This allows to manage the  budgets of teams, departments and each individual card online and in real time. Therefore, employees do not have to advance private money and all transactions are directly visible in an always up-to date expense overview.

2. Manage business expenses through pictures of receipts

Software and mobile applications that scan and save receipts online are well-known and handy. Some expense tracking tools go one step further and make it possible to link the digitalized receipt directly to the transaction, making managing business expenses even more efficient. Also other transaction details that are relevant for accounting can be directly added online via an app or online platform. Having all expense information immediately stored together saves a lot of time for the employees spending the money as well as for the accountant.

3. Invoice solution for online payments

Paying invoices online with a credit card becomes increasingly popular in companies; such as buying office supplies in online shops or paying invoices for online advertisement such as Adwords and Facebook.

However, as convenient automatic credit card payments are, as difficult it is for financial managers and accountants to maintain an overview. Each department or even single employees have separate bank accounts and the bank statements include transactions from debit as well as credit cards.

An expense management software in combination with self-issued prepaid payment cards can easily solve this hassle. All expenses are debited from one single bank account. Even better, the system can be organized based on the company structure. This means that all departments can get their required budget assigned and the cards being used within each department can be easily topped-up. These kind of expense management tools allow to get a clear and separated overview and also online payments are clearly arranged.

4. Expense Management in the Cloud

Accountability and transparency of business expenses is becoming increasingly important. Unfortunately, financial scandals are still common and studies show that 60% of employers suspect that their employees use company funds for private purposes. The problem mainly arises because information on company expenses is divided and stored on different locations or processed by several people which makes it hard to detect fraud.

Using expense management software allows to save all information online instead of numerous of folders at different locations. This enables to centralize all data and to easily view the complete information on all transactions online. These kinds of online data guarantee a high level of security and can be quickly exported into other accounting programmes.