What is expense tracking software?
Expense tracking and management software is an advanced tool that allows you business to create a budget that meets your requirements. An expanse tracking software keeps a daily record of all of your business expenses by tracking receipts and managing invoices, enabling your business to stay in line with significant financial health. Only by offering you to manage your overall cash flow, it will ensure cost-efficient performance, reduced expenses, and an improved revenue margin. An expense tracking software also allows its users to access employee expense tracking and reimburse respective costs.
Who Uses Expense Management Software?
Expense management software has three primary users.
- Employees: Employees use expense tracking software for thorough and effective employee expense tracking. It allows them to submit their expenses or project hours effortlessly.
- Administrators: Other chief users for expenses software are the administrators of the organization who can access the employees’ expenses with the help of employee expense tracking. It allows them to review, approve, and report the costs efficiently.
- Accountants: Accountants or bookkeepers are responsible for managing the general financial ledger of the organization and hence use expense tracking software for error-free management.
Why Use Expense Management Software?
Leveraging an expense management software for optimizing and managing your businesses’ financial aspects significantly benefits your business in various ways.
- Better financial management
Expenses software offers not only a better but more efficient way to keep track of all of your money. By recording your expenses daily, you can ensure that your financial situation is stable. It also offers practical insights on how to optimize your costs and improve your spending habits, thus enabling you to stay at the top of your monthly budget and strive for business success.
- Proper reimbursement of employee expenses
Suppose your employees require you to spend money on meals, travel expenses and other reasons for your business operations. In that case, maintaining a clear record for their overall costs is extremely important. An expense tracking software helps you out on such instances. Through employee expense tracking, and expense software keeps you updated on their expenses and allows you to reimburse your employees on time adequately. This provides you with a comprehensive idea regarding your operation expenses and also helps you to keep your employees happy.
- Practical and easy business forecasting
Keeping track of your overall expenses through an expense management software helps you to calculate your profitability seamlessly. This, in turn, provides you with a clear picture of your businesses’ financial prospects so that you can offer your stakeholders and potential investors a clear understanding of your business forecast, financial strategy, and profit margin respectively.
- Effortless preparation for tax season
An expenses software helps you to effortlessly record expenses that are tax-deductible with the help of employee expense tracking. This ensures that your business is prepared for the tax season and does not have to go through elaborate digging through records. A service tracking software thus helps you to minimize your financial losses due to tax reductions by efficiently sorting our deductible expenses, that include business meals, travel expenses, telephone charges, internet charges, bank fees, home office expenses, office supplies, and more.
- Reduction of processing errors
Manual submission of expense reports by employees or manual processing by the accountants can lead to considerable amounts of errors. Moreover, manual processing also requires effort and time. But with an expense management software, expense report submission through effective employee expense tracking and automatic processing ensures an error-free, efficient financial management system.
Kinds of Expense Management Software
While some Enterprise Resource Planning (ERP) solutions and accounting systems offer basic features and functionalities of an expense tracking software, these can be inadequate for businesses with a significant mobile workforce. Hence, specific expenses software is developed for optimum financial tracking, monitoring, and management.
- Standalone expense management software: Standalone expenses software solutions exclusively focus on the financial management of the business. This software is often integrated with ERP solutions and accounting systems for maximum optimization.
- Travel and expense management solution: Travel and expense management software can either be delivered as a part of the entire system or as a separate module that focuses solely on travel and other expenses of the business operations. Employee expense tracking and mobile expense management software ensures that the company meets all the financial management requirements of the mobile workforce effectively.
Expense Tracking System Features
- Expense categories
Proper categorization of the expenses is an essential part of organizing the overall budget of the company. That is why expense tracking software has expense category features that ensure systematic financial approach. It allows the companies to differentiate between expenses in meals, accommodations, transportation costs, telecom charges, and other work-related services. Through the expense category feature of an expenses software, the company can also differentiate between deductible and non-deductible expenses that simplifies tax preparation considerably.
- Approval workflows
The features of expense software systematically streamline the approval workflows of the company by determining the steps of the approval procedure and provides approval access to managers and accountants. It thus ensures a quick and effective approval system for the company that can be modified as per their specific requirements.
- Expense reports
The employee expense tracking of the expense software enables the feature of expense reports that allows the employees to submit their daily expenses for smooth reimbursement systematically. The software helps the employees to effortlessly provide detailed information on each type of costs, including their exact amounts and dates. It also offers the employees to access forms with allocated expenses in pre-defined fields and reduces additional fees.
- Payment integration
Payments are one of the essential parts of expense management. That is why expense tracking software has multiple payment integration features for effortless transactions. It ensures that the company adequately reimburses its employees, adjusts payments in cases of any errors, and manages various types of costs as well.
The analytics feature of the expense tracking software allows the company to analyze the collected financial data to determine trends and inaccuracies. Expenses software analytics helps the managers to effortlessly monitor travel and other expenditures of the company at different levels, while simultaneously enabling them to forecast prospects and create budgets.
- Mobile accessibility
The mobile accessibility feature of expense tracking software simplifies the entire expense management process for the mobile workforce of a company. It provides its field teams access to create reports, update invoices and receipts from mobile devices. Mobile expense management software not only offers effective employee expense tracking but can also act as a service tracking software that updates the financial requirements of the company’s services.
How to Find the Right Expense Tracking Software?
Consider the following factors before choosing the right expense software for your company and turn it into the best expense management software.
- Determine your business requirements
Determining your company’s requirements is an essential part of choosing expense software. To find the best expense management software it is recommended that first and foremost you ensure whether you are looking for a solution that manages expenses for both the company and its employees or one that focuses solely on company’s costs. Also, it would be best if you considered whether you want automation in the report generation process, auto-reimbursement, or any other feature that caters to the needs of your business.
- Define your budget
While an expense tracking software can effectively bring financial efficiency to your business, buying one can come off as a huge investment. Hence, you must define your budget correctly before splurging on the expense software. Setting an account in line with your company’s financial capabilities, will ensure that you opt for the best expense management software, either as an on-premise or cloud-based solution.
- Easy accessibility
The best expense management software for your business is the one that provides easy accessibility to all the users of the software. Choosing a software that is difficult or inconvenient to use will strain your financial resources and thus affect your bottom line. Selecting an online expense management software or a mobile expense management software offers easy to use solutions for all the users and ensures the optimum level of performance from the best expense management software.
- Immediate support
Selecting expense software from a vendor that provides immediate and round the clock support for any issues and inconvenience offers a seamless experience. It thus makes sure that your company can leverage the best expense management software for optimal results.
- Expense software demo
Selecting an expense software vendor that offers online expense management software and mobile expense management software with features in line with your business requirements can necessarily be the best expense management software for your company. However, choosing a vendor that allows you to carry out an expense software demo to check its absolute compatibility before investing in it is also essential.
Trends Related to Expense Management Software
- Travel and expense consolidation
Consolidation of travel management with expense software allows the employees of the company to book transportation and accommodation while in compliance with the company’s expense policies and role-specific allocated amounts.
- Integration of new technologies
The integration of new technologies with the expense tracking software brings into the foreground the benefits of cloud-based online expense management software and mobile expense management software. This integration enables the company to cut down on IT costs significantly and provides the employees with the comfort to access their systems from any device. Alongside the online expense management software, the mobile expense management software offers the field teams with an advanced tool through which they can access an easy-to-use management platform. They further simplify the integration of additional solutions, including accounting, ERP, and travel management.
- Power of artificial intelligence
Although AI is in primary stages, it can provide significant benefits when incorporated in the expensive software. With the implementation in online expense management software and mobile expense management software. It can analyze large volumes of financial data and thus effortlessly identify any errors or noteworthy trends than any other traditional expense tracking software.
Potential Issues with Expense Management Software
- Data integration
Information on travel booking and other expenses required to match the actual costs to get fully reimbursed exactly. But issues in data transfer between systems may lead to inaccurate accounting due to improper integration of the expensive software.
- Privacy protection
Protection of privacy for the employees can be another potential issue in expense software as they use their credit cards for personal banking details payments. Additionally, expense tracking software or service tracking software can store personal details of the employees as they book transportation or accommodations through the expense software.
- Unauthorized software
Employees often use other software for booking travels, managing receipts, etc., which are unauthorized by the company. This may lead to data management issues in an expense tracking software.
Software and Services Related to Expense Management Software
- Travel-management software
Online travel expense software helps the employees to find travel options and manage their bookings, confirmations, receipts, invoices, and expense reports to ensure appropriate reimbursements.
- Mileage tracking
Service tracking software allows the employees to manage transportation costs incurred in their vehicles. An online expense management software helps them to secure per mile-based reimbursement from their company.
- Accounting and ERP
Accounting and ERP software helps the companies to track their expenditure on travel expenses and other resources, alongside expense tracking software and allows them to analyze their overall costs and improve their profit margin.
Expense Management Software Comparison
Factors to consider while comparing multiple expense tracking software are:
- Automation & manual efforts
Comparing the expense tracking software based on their automation level alongside their manual efforts offer informative insights into the suitability of each software for your company.
- Integration options
Each expense tracking software can provide different integration options. Hence, it is always useful to compare the integrative features, and their respective benefits for your business will deliver informative results.
- Reporting capabilities
Since expense management software requires effortless expense reporting capabilities, comparing the reporting features of each expense software will help you to determine the best expense tracking software.
How will FieldEZ expense software be helpful to business?
FieldEz’s integrated expense management software allows you to manage and organize your expenses anytime, anywhere. Developed with all the necessary features alongside other advanced integration, the online expense management software by FieldEz offers a secure and comprehensive platform that benefits the managers and well as the field users equally. It ensures timely reporting of all expenses, allows easy updates of receipts and invoices, stores financial records at a single place, and simplifies the entire reimbursement process. With FieldEz’s mobile expense management software, the managers can collect all the employee expenses at one click through effective employee expense tracking. At the same time, the field users can effortlessly & quickly claim all the costs on the go without any hassle by updating payments daily. With the mobile expense management software by FieldEz, you can improve field load factor by 10%, save travel costs by 34%, and improve task assignment efficiency by 46%.
Why should you use expense management software?
Expense management software allows you to optimize and manage the financial records of your company by tracking employee expenses, travel and accommodation expenses and more. It enables you to access the expense reports and up-to-date receipts & invoices and ensures appropriate reimbursement process.
What does expense reporting software do?
Expense reporting software enables integrated expenses software to monitor, track, and store expense data related to the company’s operational costs. It provides detailed reports of employee expenditures in pre-defined fields of your business. It makes sure that the allocated budget is being spent accordingly in prescribed areas through employee expense tracking.
What are the essential features required to manage employee expenses properly?
To correctly manage employee expenses, you should leverage an online expense management software that your managers and field employees can access anytime anywhere. Thus mobile expense management software is essential to effective employee expense management, alongside features like real-time expense reporting, receipt and invoice updates, financial data analysis, and better integration.
Where can you find expense management features?
Some expense management features are often integrated with accounting and ERP solutions. But utilizing this software for expense management is not usually adequate for businesses. Hence, software vendors have developed expense tracking software with the sole purpose to exploit the expense management features fully.
What is the price of expense management software?
The price of expense management software differs significantly as per its package and deployment options. For example, the cost of cloud-based expenses software varies from that of on-premise expenses software. Similarly, the cost of different online expense management software also differs based on its features and other integration. Roughly, the pricing can be as low as INR 99.
What is the best expense management software?
There are many expense management software in the market that offer quality expense management services. But selecting an expense tracking software that is compatible with your business requirements and provides a comprehensive approach can be the best expense management software. For instance, FieldEz’s mobile expense management software provides your business with advanced expense management that not only streamlines your financial processes but also ensures easy accessibility on the go.
What is the best way to keep track of and manage your business expenses?
Keeping track and managing all of your business expenses can be stressful. But investing in expense tracking and management software offers an effective solution to the problem. It ensures that you seamlessly manage every cost of your business while simultaneously simplifying transactions and tax preparation.
What is the best free personal finance software?
There are several free personal finance software available in the market that offers multiple advanced features. However, the best one may ultimately depend upon the individual requirements. Software that meets your personal finance goals most suitably and offers maximum functionality is most preferably the best for you.
How can you track your deductible expenses?
Deductible expenses signify those operational expenses of your business that can be deducted from your taxation assessment, thus enabling you to save additional money considerably. By leveraging an expense tracking software with employee expense tracking functionality, you can effortlessly track your company’s expenses like transportation costs, accommodation costs, bank bills, phone and internet charges, and other related expenses.