While you may think that the vast majority of organizations and large companies in this day and age use an automated software system of some kind to manage company expenses, the truth is that nearly half do not.

Yes, that means that nearly half of all companies are submitting expenses manually through physical copies of receipts, Excel spreadsheets, and so on at their accounting departments.

If this admittedly is true for your organization, then switching over to an automated software system is something you will want to do quickly, and we’ll go over the reasons why.

Here are the top five reasons to incorporate expense management software at your organization:

expense management

Reason #1 – Your Employees Can Spend Their Time On Better Tasks

The very first reason to use expense management software at your organization is so the employees in your accounting department can spend their time on doing better tasks.

By ‘better tasks,’ this means doing tasks that actually necessitate manual human control. Managing company expenses is not something that requires manual control because it can be done in an automated fashion with the correct software.

Yes, using automated software is still going to require human oversight. But the point is that it’s going to save your employees countless hours, and will enable them to make far better use of their time.


Reason #2 – You’ll Reduce The Odds of Human Error

Manually entering and processing every single expense creates a wide vulnerability for human errors, and multiple human errors at that.

In fact, one of the best advantages of automating things at your company in general is that it reduces the odds of human error, including errors that could cost you money or that could otherwise simply give you inaccurate data (more on data later).


Reason #3 – It’s Cheaper For Your Company

If you’re still not yet convinced by the previous two reasons to incorporate expense management software at your organization, then you may be convinced by this one: your company will save a lot of money.

The total cost of manually submitting and processing each expense report can come out to around thirty dollars. In contrast to this, automating your expense reports will bring the cost down to less than ten dollars.

Not only is automating your expense reports less time consuming, it’s also less costly from a financial point of view too. Expense reports add up quickly, and that’s going to save your company a lot of money over the long run.


Reason #4 – It Reduces The Risks of Fraud

Believe it or not, but expense fraud in the United States alone costs billion of dollars a year. We’ve already discussed how turning to an automated software solution can and will reduce the odds of human error.

The next level from that it is that the risk of false or duplicated expense items submitted for approval is dropped significantly.

One example of deliberate expense management fraud that could be committed is a user submitting an expense that is not eligible for reimbursement. This is something that a high quality software would be able to detect and stop.


Reason #5 – You’ll Gain Insights Into Company Practices

All of the data that an automated expense management software can give to you will be highly valuable and borderline priceless.

You’ll be able to use software to analyze thousands if not millions of expense data points to detect trends to find areas in your corporation that are inefficient or far more expensive than they should be.

For example, you’ll gain valuable insight into hotel and airline transactions, the data of which can be given to your business analysts or financial teams to review and make better decisions on how your organization can reduce on the cost of business employee travel.

Even better is how this data can be presented to you and your senior management team in a very visual and easy to understand way, such as through bars or graphs.


Incorporating Expense Management Software

All in all, these are the top five reasons why your organization or company would be wise to incorporate expense management software if you haven’t already.

Utilizing expense management software saves your employees time, your company money, reduces the odds f fraud and human error, and can give you immensely valuable data into your company’s inner financial practices.