Make Reimbursements Easy With Expense Approval Software
March 18th, 2019 • Expense Management
Reviewing and approving expense reports manually can feel like heavy labor. Finance teams are usually swamped with expense reimbursement requests when employees return after sales conventions and client meetings. Often, the expense reports are rife with errors, unintentional or otherwise.
It’s next to impossible to collect, review, validate, and approve reimbursement claims manually without slipping up somewhere in the middle. There are a lot of moving parts when it comes to expense approvals, and even a minor mistake can prove costly.
Having dedicated expense management software can help solve all these problems quite easily.
What Is Expense Approval Software?
Expense approval software helps businesses replace repetitive and predictable tasks associated with expense approvals like requesting, validating, and approving expense reimbursement claims, with rule-based logic. Expense reports have a sequential path to follow, and reach the right person at the right time so employees can get reimbursed fast.
Essential Features of Expense Approval Software
Every business has unique requirements when it comes to expense management, but there are a few features that you cannot do without. Here are some essential features that every expense approval software should have:
Expense policy management
The expense approval software should accommodate your employee expense policies and approval hierarchies. When the expense management system displays the policies, the chances of unqualified expenses being submitted goes down.
When employees return from a business trip, they compile all their business expenses into reports and submit those to their managers or the finance team. The system should let them submit expenses on the go with a mobile app.
Whenever employees submit their expenses, the expense management system should validate the expenses and throw red flags if they don’t adhere to the spending guidelines.
If there are any expenses in the report that don’t comply with the organization’s policy, the system should notify the approver. This makes it easier for managers and the finance team to approve or reject a claim.
When the claims get approved, the system should post journal entries to accounts payable and add an entry to the payroll software so employees can be reimbursed.
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Why Is Having Dedicated Expense Approval Software Important?
Finance teams often find themselves neck-deep in paperwork when employees return from business trips. Manual processes are prone to errors and miscommunication; they rely on managers to validate and approve claims quickly.
When you use dedicated expense approval software, it does most of the heavy lifting for you and can help expedite the approval process. Here are some benefits of using an expense management tool.
Compliance with travel policies
The expense approval software identifies policy violations and throws up red flags if a request violates them. Ensuring that corporate travel policies are adhered to takes a huge burden off the finance team’s shoulders. This will also help reduce expense fraud and enforce compliance.
Visibility into financial health
When you track how much money goes out, you get a better picture of the cash flow. You can identify areas where you’re spending unnecessarily, and make insightful decisions that can help you cut down on costs. This helps you plan an effective budget for future business trips.
Tax deductions and audits
Travel expenses must be “qualified” in order for an organization to mark them as legitimate expenses. Without tight control over the process, you may be missing out on tax benefits. In addition, you’ll need records and audit trails to show that you’ve properly managed travel expenses, and haven’t opened yourself up to claims to mishandling funds.
Submitting expenses and waiting for claims to be approved can easily become a full-time job, taking a toll on productivity. When you have an easy-to-use system in place for employees to submit reports and claim expense reimbursements, it makes their lives a lot easier.
How Can KiSSFLOW Help?
A workflow automation tool like KiSSFLOW can help you build your own expense approval app based on your unique requirements. There’s no coding involved, and you can start building applications with simple drag-and-drop functionalities. You can have multiple levels of approvals, and the system grows with you.
If you’re looking to take control over expense approvals, then look no further. Take KiSSFLOW for a test drive and see how fast your approvals get. Start your free trial today.
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