what is expense management software

What is Expense Management Software?

Written by
Michelle is a Business Developer and Marketing Intern at Rydoo

“T&E for Dummies” is our category of posts for beginners in the travel and expense ecosystem and we’re back with a new blog. This time we will explain to you, how to use expense management software, what are the different types of providers, and how businesses can benefit from using it. 

Also read: What is expense management?

First things first.. Do you already know all about expense management?

Expense management refers to a business process, to pay, and edit employees’ expenses. Such spendings include transportations, meals, business travels as well as various other costs. To create awareness of which expenses can be reimbursed; internal expense processes and regulations should be communicated to all employees. Therefore, it is mandatory for businesses to have a good and clear travel and expense policy that will govern these expenses. 

Now guess how you can make your expense management easier?

Correct, with software! Expense Management Software is software to manage, edit and authorize expense claims, as well as to automate the reimbursement processes.

Having a good overview of business the data associated with corporate spendings can be exhausting for both finance teams and business travelers. More importantly, if you have a smartphone and the right tool, it is unnecessary to spend time and nerves in the process. With a mobile expense app you can easily make a picture of a receipt, let it scan through digital technology (OCR), and extract the data automatically, to decrease the unnecessary manual processes. 

Simply uploading expenses, without creating long expense reports, makes it easy to work on the go and get expenses approved. The modern process of streamlining expenses rather than creating reports makes reporting more user-friendly and employees can get reimbursed faster.

Ready to automate your Expense Management?

The finance department, including approver, controller, etc. gain insights, transparency, and control of employees’ expenses. Modern expense solutions can process and analyze expenses to make sure that only those that fit the company’s T&E policy will be approved. That means errors can be sorted out automatically to reduce the heavy workload and constantly update business analytics without any manual work.

Roughly, Expense Management Software can be obtained from 2 different types of providers: 1) organizations that provide a licensed software, implementation, and support service, or 2) alternatively, from software-as-a-service (SaaS) providers. SaaS providers offer on-demand cloud-based applications to improve the productivity of expense management. Click here, if you want to compare different expense management software providers.

Is SaaS the answer?

SaaS stands for “Software as a Service”. It can be any solution from communication software to travel and expense management. Since the digital revolution, SaaS companies are growing a lot in the B2B (business-to-business) industry. One major benefit of using the SaaS is its efficient operational management; including constant updates and real-time data analytics. Therefore, no further updates need to be bought to keep the system up to date. 

An intuitive digital environment, which is easy to access for all employees is another advantage that is important to consider before choosing to a cloud-based solution. You can access your software from every computer or smartphone, from anywhere, as long as you have an internet connection. 

In addition, the upfront costs compared to traditional download and installation software is lower. That is how the ROI (return of investment) can be reached faster.

Looking for the perfect Travel and Expense Policy template? We made a customizable one for you! Get it now.

Rydoo can help you with that!

We hope that next time someone asks you “what is expense management software?” you’ll answer with no hesitation that you not only know what is the best way to manage expenses but also which tools to use. If you want to understand more about the benefits of using software to manage expenses, book a demo with one of our specialists and master the digital transformation in your company.

Originally published , modified

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