Most small-scale companies resort to paper form, excel workbooks, and notepads to record regular expenses. But such paper-led bookkeeping has disadvantages, which a modernised expenses management platform overcomes.
With an already sensitive environment, all modern companies should shift to cloud-based bookkeeping and management of their expenses. Using expenses management tools such as uKnowva smart solutions and ERPs have added advantages.
Read about those aspects in this blog today and be familiar with its implementation and implications.
It will improve the expense management system your firm applies for accurate balancing of records and payments. That also includes on-time disbursement of salaries with automated features.
Everything To Know About Expense Management Platform:
What do we mean by expense management using it on an online platform?
Businesses need to meet the expenses to run their operations every day. These could be employees’ salaries, sundry expenses, current liabilities, utility expenses, conveyance, and travel allowance.
Those are just a few expenses that came to mind for better explanation. There could be various other expenses for each firm.
Managing such expenditures is difficult for the finance team without an expense management system. Keeping track of invoices, expenses, cash inflow, and outflow is hard and prone to errors on paper.
Even Excel workbook management is tedious and time-consuming. That’s why expense management is best used and exercised on smart online platforms.
What’s the justification for giving an expense management platform so much importance?
If the company fails to manage its expenses, it would also fail to adhere to the government rules and regulations over the period. They won’t be able to file income or business tax returns.
Companies with a fault expense management system often have a bad reputation in the market. These cannot pay their expenses like employees’ salaries on time and accurately.
To avoid such chaos and not become a defaulter, in any case, more importance is given to the expense management software. It is mostly online and on the cloud. If you avail of such smart solutions, the tax filing, and other legal proceedings become easier and more transparent.
The modern expense management platform lets you stay updated about government norms and policies. The system can give you triggered reminders on filing and submitting reports to the government.
In such systems, disbursing salaries in bulk is simpler, effective, honest, and reliable. There is no chance for your HR or finance teams to mistakenly transfer the wrong amount to the employee.
That is because the system calculates the salaries and compensation of each employee at the backend. It will read the offer letter, basic pay, offer letter, or any other details attuned with the employee’s salary structure.
The system also takes in the calculation of the projects completed and the time taken for the same.
So, employees file for the same if they are eligible for bonus compensation. The uKnowva expense management system vets it automatically to save HR and finance teams’ time.
Expense management process:
Recording and submitting claims
This is the first step in the holistic process of management of usual business expenses. Different teams have to use the system or platform to enter their expenses incurred. The system can be the best bookkeeping platform without the scope of manipulation or bias.
Employees also have the panel to submit a report for claims or reimbursements before their salaries are rolled out for the month.
Managers verifying the expenses
At this step, the concerned manager will verify the expenses and reports submitted by their employees. The history of this verification is recorded in the expense management software. Again, there is no scope for manipulating the system or software to save expenses.
Admins can choose to automate certain verifications if the expenses are recurring. They take help from the developers or uKnowva IT support team when they are launching their instance.
The uKnowva teams help implement the software in as fast as 15 days. So, incorporating the software for regular vetting and verification of expenses will be most reliable and dependable.
Approving or rejecting reports
Concerned admins or managers will have the authority to reject or approve reports. These could be claims or reimbursement reports submitted by their employees. However, each approval and rejection must be justified with evidence.
If employees feel that they are being wronged; not given the right compensation as per the company policy, they file a grievance report.
Finance team audits the compliance
Using an expense management platform is an effective procedure for finance teams. They easily check the compliance work and report over the system. They know when the last report was submitted to the government.
Using this software, they can easily check and audit any financial records for a specific financial period. That is because the data is never lost there. The system runs automated backups and health checks to protect the data over the cloud server.
Scheduling payments and automating the disbursements
Employees can easily automate large and bulk transactions using the uKnowva expense management software. Such procedures save their regular time to be invested combined with efforts to audit.
In fact, with an automated expense management tool, HRs and finance teams are at ease. They schedule payments in advance whenever they have time after auditing the same. They won’t have to audit reports and expenses repeatedly when disbursements proceed.
Maintenance of records and reports for further auditing
Simply scheduling and paying off current or sundry liabilities isn’t enough. Both HR and finance team executives have to record the expense bills and invoices. Depending on the paperback is messy and prone to human-eye negligence.
However, with automated expense management, such drawbacks are conquered effectively. The software records each transaction history itself. HRs and other teams visit and audit these reports whenever they want to.
It’s easier for the finance team to access the transactional data recorded in the system or its server. Their auditing steps and processes are mostly then online. It saves their invested time every quarter.
They also have the accessibility to download these reports in multiple latest formats like PDFs or doc files. Later, they can forward these reports to concerned parties and the board of directors.
This blog post gives the basic structure of an expense management platform for HR and finance teams.
If you’re looking for a similar platform, uKnowva could be the best choice here. It’s the best tool for a startup with 100+ employees and other growing companies.
Expense management is simple and streamlined.