Today is the day to give props to a Mom and Pop shop. We’re seizing the Divvy by dropping some tips and tricks, teaching small business owners how to select the best expense management process that scales with their business. Smaller outfits, startups, and mid-market companies have more in common than we sometimes realize. We’ve talked to a lot of companies, large and small, about expense management, what works, what helps and hurts, if their current system meets their needs. We’ve found that the answers vary slightly by company with common threads throughout. Here’s the gist of shared expense management pain points across companies:
- Unproductive – Time consuming, takes time from core-business focus
- Delayed Insight – Limited or no real-time visibility
- Inconvenient – Manual processing, receipt management, complicated reconciliation
- Inaccurate – Missing receipts, human error, fraud, compliance issues.
- Inflexible – No budget or spend insights, Inability to quickly reallocate funds
- Lack of Control – Inability to streamline fund requests, approval, spend, and accounting
Updating Your Organization with Emerging TechnologyBefore you begin the process of initiating a new platform or changing your current expense management processes, ask yourself if an update is necessary. Typically, organizations choose to change and update their procedures and implement an expense management solution for one of the following reasons:
- Spend Control – Increasing visibility to reduce expense costs and losses through policy enforcement
- Improved Efficiency – Eliminate the paper trail and data re-entry
- Reporting – Simplify KPIs by generating spend and expense management reports, tracking who spends and why
- Compliance – Enforce organizational policies and guidelines through simplified user adoption
How to Select the Best Expense Management System in 3 Simple Steps
1. Prepare: Discuss and DefineDefine your current organizational challenges to create a ranked list that the expense management platform should solve or simplify. Implementing an expense management system has many benefits, but the best choice for your business is the one that meets your priorities. What are the top three-five biggest challenges your organization faces when it comes to managing expense reports? Once you’ve narrowed it down, meet with your team, departments, and managers. Ask them the same question to determine:
- Do their responses match your prioritized list?
- Did they find it difficult to limit their response to three-five challenges?
- What new challenges did you uncover in their responses?
- Are certain employee roles impacted more than others? Why?
- Have you factored the size of your business into your needs?
- How many people in your organization file expense reports?
- Approximately how often do they submit an expense report?
- How do employees currently submit spend requests and expenses?
- Do your employees travel for business frequently? Does this include international travel?