The contemporary Expense management program is built on a foundation of key capabilities that drive: process improvements, knowledge management, collaboration amongst core stakeholders and performance measurement.
However, this hasn’t been the same.
Spreadsheets & Email
A lot of businesses used to and still follow the traditional paper-based methods when it comes to accounting their business-related expenses. Employees gather receipts, and email them, along with a spreadsheet, to their supervisor & finance team, who proceeds to review, revise and approve the expenses over email resulting in a long, time-consuming process that is prone to human error.
While this never provides a big picture view & costs you more time, effort & money it is also highly error prone.
On-Premise Expense Management System
On-premise expense management systems involved a long implementation cycle with heavy upfront capital restricting it’s implementation to only really large enterprises.
Security had to be managed by the company, and there was a slower cycle for releasing updates.
Training costs were significantly higher along with an in-house IT team to manage the system.
Cloud-Based Expense Management System
Around 2005, businesses discovered that it made more sense to buy shared computing resources from the cloud.
The cloud-based application is operated by a third-party organization as opposed to the installation and maintenance of an on-site business system.
Cloud-based expense management software is a great way to improve efficiency, resulting in a solid financial benefit. Organizations have greater visibility into areas where they can manage spending more effectively while streamlining business processes with cloud-based expense management systems.
Payments enabled Intelligent Expense Management System
Payments being an integral part of reporting & managing expenses is now available, fully integrated with cloud Based Expense Management Systems. This simplifies the process of bookkeeping process and quick disbursement of cash advances to employees while achieving control even before spend using payment cards. These systems can also be used for advance payouts directly to the employee’s bank account.
To add to this, recent advancements in computing allows the usage of machine learning algorithms to recognize patterns in data by looking at historical claims, trends of expenses for employees in similar roles. Suspicious claims can be flagged by checking for non-conformance to Benford’s law etc.
Other elements of the user profile, such as notice period, the percentage of round value expenses, nature of claims, role, etc. are also used as inputs to the AI model. Supervisor intervention is sought only for a small set of flagged expenses – and these explanations are also incorporated into the AI engine to further refine the expense pattern for the given user.
Finly is the leading provider of the most advanced Expense Management System in the market disrupting the space with the most configurable & flexible system while being powered by artificial intelligence for automated reporting.
The software is beautifully designed by finance & technology experts making it intuitively easy-to-use and also integrates with core banking technologies, enabling finance teams with tools & data to remove all expense management hurdles as the business scales.