Expense Management is the process of managing and approving the expenses incurred by employees in a company. This can range from travel expenses to purchasing office supplies. Unfortunately, there are many myths surrounding Expense Management, which can make it difficult to understand. In this blog, we will address three of the most widespread myths about Expense Management. Continue reading to find out how Expense Management can digitalize and automate your way of handling expenses.
1. Expense Management is only for large companies
One of the most widespread myths about Expense Management is that it is only relevant for large companies. But the truth is, all companies can benefit from having a good process for managing expenses in place. Whether you work in a small startup or a large global corporation, it is possible to save time and money by having a systematic approach to managing expenses.
Unfortunately, many smaller companies are often too busy running their daily business and do not focus enough on optimizing their expenses, which can lead to unnecessary costs in the end. With a good Expense Management system, it is possible to digitalize and automate many of the manual processes and get a better overview of expenses. This can contribute to increasing the bottom line and provide more time to focus on core tasks.
2. Expense Management is difficult to implement
The myth that it is difficult to implement Expense Management is one of the most widespread. The truth is, today it is easier than ever. With advanced technologies and user-friendly platforms for both web and app, it is easy for companies of all sizes to implement. We have described this topic in a separate blog post.
It no longer requires expensive IT projects or large teams of specialists to get started. It won’t be long before you can see the financial savings and improvements in the work processes. Instead of viewing it as an overwhelming task, companies should instead see it as an opportunity to create a more efficient way of managing expenses.
3. Expense management is solely about saving money
The misconception that Expense Management is solely focused on cutting costs can be challenging to disprove, as it is certainly one of the goals. However, it is far from the only objective. Actually, a well-designed Expense Management system can offer numerous advantages in addition to cost savings. These are some of the most significant ones:
Better overview of the company's expenses:
By having a solution to handle expenses, it becomes easier to keep track of what the company’s money is being spent on and which areas can be optimized.
Increased control over employee expenses
With an Expense Management solution, it is easier to manage and approve employee expenses, which can help minimize the risk of fraud.
More efficient processes
A good Expense Management solution can automate many of the heavy and time-consuming tasks normally associated with invoice handling and approval. This can save both time and resources.
A good Expense Management solution provides the ability to generate advanced reports and analyses that can help management make better decisions and improve the business.
Although savings are an important part of Expense Management, it is far from the only goal. A good Expense Management solution can provide many more benefits and help the company become more efficient and competitive.