Remote work culture, known as work from home, has slowly emerged as the new normal. It provides a lot of flexibility as it allows an employee to work from remote locations. According to the Buffer report, more than 90% of employees prefer working from home. Not only employees but also employers benefit from the work-from-home culture as they do not have to pay for utilities, rent, etc. However, it becomes difficult to manage company expenses when people are working from different locations.
Essential Features of Expense Management System For Remote Workers
While manual expense management presents unique challenges, doing the same when employees are working remotely can become even more challenging. This is where automated expense management software comes in useful.
In this section, we mention some key features you should look for:
Mobile App
If the expense management system has a mobile application, employees working remotely can download it on their smartphones or other devices and use it to submit their expenses. Doing so allows them to track their expenses in real time, and they would not have to keep any paper receipts for later approval.
Expense Categories
If an expense management system has predefined categories for expenses, the people working remotely can submit their costs more quickly and efficiently. Some categories include meals, travel, supplies, etc.
Receipt Scanner
An expense management system software must have a receipt capture feature which employees can use to capture photos of any receipts they have. The automated software can read important data and gather and sort it accordingly.
Automated Approvals
An expense management software can also have predefined limits. If the expenses of an employee fall under that limit, the software can immediately approve the reimbursement. This not only makes the job of managers and accountants easy but also provides convenience to employees who would not have to wait for manual reviewing and approval of each expense.
Integration
Integration with popular accounting software such as QuickBooks or Xero makes calculating, verifying and tracking expenses easy. Therefore, a sound expense management system should be able to integrate with such software.
Real-time Reporting
If the system shows the status of all submissions, then managers and remote employees can access the reports and see which expenses are pending, approved, or rejected.
Multi-Currency Support
Since remote employees can work from different countries, the expense management system must provide conversions to other currencies to make it easier for employees to submit and check the status of a report.
7 Best Practices And Tips
If a company or business has remote employees, then a sound expense management system can provide an innovative solution to many of the company’s problems. Mentioned below are some good practices and tips one must consider before implementing the system.
Expense Policies
The company or organisation must clearly define its expense policies before implementing an expense management system. The remote employees should be thoroughly briefed about the guidelines, especially regarding what expenses are allowed and how the submission for reimbursement has to be done. Doing so allows the workers to avoid confusion and errors, and it benefits the managers and accountants as well.
Spending Limits
Set precise spending limits for different categories in the expense management system. Doing so helps prevent excessive spending by employees, and it also helps the company to maintain a balance between cash inflow and outflow and avoid any unnecessary expenditures.
Submission
One of the best practices is to tell the employees to make their submissions in real time. This means they should not wait until the end of the month or financial quarter to submit their expenses. Doing so makes it easier to keep track of expenses and approve reimbursements without much delay.
Training and Support
A great tip about expense management systems for remote workers is that the company must provide them with some training and support on how to use the system effectively.
Automation
While an expense management system has many benefits, one is automation. An automated software not only captures and sorts data but also streamlines it. Automated systems make use of Optical Character Recognition and Artificial Intelligence to extract, sort, analyse and report data and information.
Regular Monitoring
Another good practice is to regularly monitor and analyse expenses. Doing so helps identify similar trends, unnecessary costs and places where expenditures can be reduced. It allows the company to keep a check on its costs and invariably increases the overall efficiency of the system.
Review and Update
The company or organisation should review and update its expense policies at regular intervals. Doing so keeps the system relevant and allows it to run smoothly, even with remote workers. It can help meet the needs of both the employees and the business.
Conclusion
Organisations should fully use automated expense management system, mainly if they operate remotely. Good software can not only streamline, report, track and analyse processes but also reduce errors, improve efficiency, save time and resources and provide better visibility and compliance. Therefore, expense management software with the features mentioned above can prove to be a valuable investment.
I am an experienced financial analyst & writer who is well known for his ability to foretell market trends as well.
