Expense management software - Benefits, features, and working
In today's fast-paced business environment, effectively managing expenses is crucial for maintaining financial health and operational efficiency. Expense management software automates and streamlines the process of recording, reporting, and reimbursing business expenses.
This digital solution not only saves time but also reduces errors, ensures compliance with company policies, and provides valuable insights into spending patterns.
With advanced features like receipt scanning, real-time tracking, and integration with accounting systems, expense management software is transforming how businesses handle their financial operations, making it an indispensable tool for organizations of all sizes.
How do businesses handle their expenses?
A portion of company capital that’s allocated for daily business operational expenses is known as a petty cash fund. It is generally a fixed amount that’s refilled as expenses occur. Usually, petty cash is managed either using paper logs and receipts, or spreadsheets that act as a digital version of paper logs.
Another popular way to manage expenses is by using business credit cards that are linked to the business bank account. Since there is no way to check who is responsible for a particular expense, traditional company credit cards are reserved for C-suite executives or senior management, along with the office administrator.
Whether it is for office supplies, client meetings, or traveling as a company representative, employees are either provided cash advances or allowed reimbursement to be paid later. In both situations, employees must furnish necessary documents such as receipts or airline tickets for travel expense reporting.
What is expense management software?
A majority of companies all over the world rely on traditional legacy systems for expense tracking and reporting, such as spreadsheets, paper-based invoicing and receipt tracking, and manual data entry for expense control. As companies continue to scale, these processes get harder and costlier to control using outdated travel and expense management platforms.
The solution? Expense management software that allows innovative processes such as automated expense reporting, invoice capture, receipt management, smoother accounts payable (AP) workflows, and company expense cards for faster and safest payment processing.
Types of expense management systems
Cloud-based expense management systems
Cloud-based expense management systems are hosted online and can be accessed from anywhere with an internet connection. These systems offer real-time updates, automatic software updates, and easy scalability, making them ideal for growing businesses.
Their flexibility allows for seamless integration with other cloud-based tools, and they typically have lower upfront costs since they operate on a subscription basis. Data security is managed by the provider, ensuring compliance with the latest standards.
Integrated expense management solutions
Integrated expense management solutions are designed to work seamlessly with a company’s existing enterprise resource planning (ERP) or accounting software. This integration ensures that expense data flows directly into the financial systems, reducing manual data entry and the risk of errors.
These solutions often include additional features like travel booking, invoicing, and budgeting tools, providing a comprehensive financial management platform that supports end-to-end visibility and control over corporate spending.
On-premises expense management systems
On-premises expense management systems are installed directly on a company’s servers and maintained internally by IT staff. These systems offer more control over data and can be customized to meet specific organizational needs.
However, they require significant upfront investment in hardware and software, as well as ongoing maintenance costs. On-premises systems are often preferred by larger enterprises with strict data security requirements or those with limited internet connectivity.
Standalone expense management software
Standalone expense management software is a dedicated tool designed solely for managing business expenses. While it may not offer the extensive features of an integrated system, it is often more affordable and easier to implement.
These solutions focus on key functions like expense tracking, approval workflows, and report generation. They are ideal for small to mid-sized businesses that need a straightforward, user-friendly tool to manage expenses without the complexity of a fully integrated system.
Optimize your financial processes today!
What are the benefits of using expense management software?
1. Faster employee reimbursements
Expense reimbursement software automates the approval and reimbursement process, significantly speeding up the time it takes for employees to receive their funds.
By eliminating manual paperwork and streamlining workflows, employees can submit expenses easily, and managers can approve them promptly.
This not only enhances employee satisfaction but also improves compliance, as employees are more likely to submit their expenses in a timely manner.
2. Improved expense visibility
With real-time tracking and centralized data, expense management software provides enhanced visibility into business spending. Companies can monitor expenditures across departments, projects, and time periods, gaining a clear understanding of where money is being spent.
This visibility enables businesses to identify trends, detect anomalies, and ensure adherence to budgetary constraints, ultimately leading to more informed financial decisions.
3. Streamlines AP process
Using expense software for business can streamline your accounts payable (AP) process with a live expense tracking dashboard and automated expense reporting.
We provides the fastest cross-border B2B payments in over 130+ countries, making international payments an effortless process.
You can schedule recurring expenses through our unlimited virtual cards for quick and easy payments.
4. Reduce delays and errors
Expense management software with automated expense reporting eliminates the need for manual data entry. Every transaction is recorded automatically and instantly synced onto your existing accounting system to ensure no data gets lost.
We also offers to spend analysis and insights to reduce any payment delays and even surfaces early payment discounts to the vendors on its own.
5. Increased compliance
Expense management software offers seamless compliance with expense policy and tax rules with a rule-based expense approval system.
We have customizable approval workflows with up to a 5-level approval system that can be modified with built-in expense rules to automatically reject or pause non-compliant requests. We creates automatic barriers to safeguard company funds so you don’t have to do it on your own.
6. Prevent expense fraud
Expense management software also comes equipped with a fraud detection system to alert cardholders and administrators to any suspicious activity taking place.
For example, our corporate cards come with block and freeze features to avoid fraud. Unlike business credit cards that are directly connected to your business bank account, our cards are preloaded upon request, so your company funds are always safe and secure.
7. Better cost control
Expense management software allows businesses to set spending limits, define approval workflows, and enforce policy compliance, all of which contribute to better cost control. By automating these processes, companies can prevent unauthorized or excessive spending.
Moreover, detailed analytics and reporting features help in identifying cost-saving opportunities, such as negotiating better rates with vendors or cutting unnecessary expenses.
8. Improved cash flow
By streamlining the expense reporting process, businesses can manage their cash flow more effectively. Timely recording and approval of expenses ensure that cash outflows are accurately forecasted, preventing unexpected shortages.
Additionally, the software can help in tracking outstanding reimbursements and vendor payments, providing a clearer picture of cash flow and enabling better financial planning and liquidity management.
9. Prepares businesses for internal and external audits
Expense management software automatically records and stores expense data, creating a comprehensive audit trail. This makes it easier for businesses to prepare for both internal and external audits, as all financial transactions are documented and easily accessible.
The software’s compliance features ensure that expenses adhere to company policies and regulatory requirements, reducing the risk of discrepancies and facilitating a smoother audit process.
10. Promotes data-driven decision-making
The detailed reports and analytics provided by expense management software enable businesses to make informed, data-driven decisions. By analyzing spending patterns and trends, companies can identify areas where they can reduce costs, optimize budgets, and allocate resources more efficiently.
This insight empowers decision-makers to take strategic actions that align with the organization’s financial goals and improve overall performance.
11. Time and resource-saving
By automating the expense reporting process, expense management software significantly reduces the time and resources required to manage employee expenses.
Manual tasks such as data entry, receipt collection, and approval routing are streamlined, freeing up staff to focus on more strategic activities. This efficiency not only saves time but also reduces the likelihood of human errors, further enhancing operational productivity.
12. Accurate financial reporting
Expense management software ensures that all expenses are accurately recorded and categorized, leading to more precise financial reporting. The automation of data entry and integration with accounting systems minimizes the risk of errors and inconsistencies in financial statements.
Accurate reporting is crucial for maintaining financial transparency, complying with regulatory requirements, and making informed business decisions.
13. Efficient vendor management
Expense management software can also streamline vendor management by tracking payments, managing invoices, and monitoring vendor performance.
Businesses can gain insights into their spending patterns with different vendors, helping them negotiate better terms or identify more cost-effective suppliers.
This efficiency in vendor management contributes to overall cost savings and ensures that vendor relationships are maintained effectively.
14. Improved operational efficiency
By automating repetitive tasks and providing real-time data access, expense management software enhances operational efficiency across the organization.
Employees can submit and track their expenses with ease, while managers can review and approve them without delays.
This streamlined process reduces administrative overhead, accelerates workflows, and allows businesses to operate more smoothly and efficiently, ultimately leading to increased productivity.
Streamline expenses with cutting-edge expense management software
How does expense management software work?
Using expense software for business is a surefire way to save time and money. By removing the need for manual processes, you too can set up an efficient travel and expense management system.
Here’s how employee expense management works in the Volopay application:
● The employee makes an expense and pays it using their funds.
● The employee takes a picture of the receipt as proof of purchase, which immediately gets captured, collected, and categorized automatically.
● They submit one or more expense claims together through automated expense reporting.
● Our push notifications alert the first-level approver of the expense report. After necessary checks, they approve it, reject it, or ask for more information.
● In case the claim is rejected or halted due to insufficient information, the concerned employee is immediately notified.
● In case the claim is accepted, it moves on to higher-level approvers such as the finance team.
● The finance team analyzes the report for any non-compliance and use receipt management for faster reconciliation.
● All approved claims get reimbursed immediately or are scheduled to be paid at a later date directly to the employee’s bank account.
Also, check out our comprehensive article on the best expense management software to know the handpicked selection of the top expense management software solutions available in the market. Whether you are a small business owner, a finance manager, or an entrepreneur, this article provides valuable insights to help you make an informed decision about the right software for your organization.
Features of expense management software
Expense management software comes equipped with a range of features designed to streamline the process of managing business expenses.
These features not only enhance efficiency but also improve accuracy, compliance, and overall financial control within an organization. Below are some of the key features that make this software an essential tool for businesses.
Submitting and approving expenses
Expense management software simplifies the process of submitting expense claims by providing a user-friendly interface for employees to upload receipts, enter expense details, and submit claims.
Managers can then review and approve these submissions in real-time, with notifications and automated workflows ensuring that the process is swift and compliant with company policies. This reduces the time and effort required for both employees and managers.
Automatic expense categorization
One of the standout features of expense management software is automatic expense categorization. The software uses predefined rules and machine learning to categorize expenses based on the data provided, such as vendor names or transaction amounts.
This feature minimizes manual data entry, reduces errors, and ensures consistency in how expenses are recorded across the organization, making it easier to track and analyze spending patterns.
Managing reimbursements
Managing reimbursements is made seamless with expense management software. Once expenses are approved, the software automatically calculates the reimbursement amounts and processes payments, whether through direct deposit or integration with payroll systems.
This automation ensures timely payments to employees, reducing frustration and increasing satisfaction. It also provides a clear record of all reimbursements for future reference or audits.
Reporting and analytics
Expense management software offers robust reporting and analytics features that provide deep insights into company spending. Users can generate custom reports based on various criteria such as department, project, or time period.
Advanced analytics tools help in identifying trends, spotting potential issues, and making data-driven decisions. This visibility into expenses enables better budgeting, forecasting, and overall financial management.
Documentation and support
Expense management software provides robust documentation and support features to assist users in navigating the system. This includes in-app guides, help centers, and customer support options that are readily accessible.
Additionally, the software often includes features for storing and managing receipts and other relevant documents, ensuring that all necessary documentation is easily retrievable for audits or reviews.
Approvals
The approval process is streamlined through customizable workflows that align with the organization’s policies. Managers can set up multi-level approvals, ensuring that higher-value or unusual expenses are reviewed by appropriate authorities.
Notifications and reminders help keep the process moving smoothly, reducing delays and ensuring that all expenses are reviewed and approved in a timely manner.
Accounting software synchronization
Seamless synchronization with accounting software is a key feature of expense management systems. This integration allows for the automatic transfer of expense data into the company’s accounting system, reducing manual data entry and the risk of errors.
It ensures that financial records are always up to date, facilitating accurate bookkeeping and simplifying the reconciliation process.
Expense policy compliance
Expense policy compliance is a critical feature that ensures all submitted expenses adhere to company guidelines. The software enforces predefined policies, such as spending limits or allowed expense categories, by flagging or automatically rejecting non-compliant submissions.
This reduces the risk of unauthorized spending and helps maintain financial discipline within the organization, protecting against potential misuse of company funds.
User access and security
User access and security are vital components of expense management software, ensuring that sensitive financial data is protected. The software offers customizable user roles and permissions, allowing organizations to control who can access, submit, or approve expenses.
Advanced security measures, such as encryption and two-factor authentication, help safeguard data against unauthorized access and potential breach.
Mobile accessibility
Mobile accessibility is a must-have feature, allowing employees to submit, track, and approve expenses on the go. Expense management software typically offers mobile apps that provide full functionality, including receipt scanning and real-time notifications.
This flexibility ensures that expense management processes are not delayed, even when employees or managers are traveling or working remotely.
Manage all your business expenses on a single platform
Choose the right expense management software
Determine your needs and goals
Choosing the right expense management software is an important decision. Therefore, ensure that you are investing in particular software for the right reason. What needs are unmet by traditional expense management systems that software can fulfill? Do you want to reduce the time it takes for employees to submit expense reports?
Do you want an in-depth analysis of your employees’ spending patterns? Do you want to prevent fraud or streamline payment processes? Narrowing down your goals and needs will help you assess your options wisely.
List out features you need from expense management software
With so many nifty features available in the market, it is natural for you to get tempted by something that you might never use in exchange for the facilities you needed. Create a list of all the features your ideal expense management software should possess. This can help you prioritize the features an expense software for business must have for your company to run efficiently.
Keep in mind the 3 considerations
Once you have a hold of the features you would want your spend management software to possess, it’s prudent to take stock of three of the biggest factors in business operations. First, ensure that the software you choose falls within the available budget set aside for this particular expense. Second, make sure that the technology you are going for can be easily implemented.
Not every employee possesses the same technical prowess so being considerate here would be beneficial in the long run. Lastly, any new system needs time and patience to be implemented by the company and adopted by its employees. Therefore, ensure that you have the time needed to revamp your AP processes smoothly.
Involve key people in your organization
Even though you are the decision-maker, expense management software is largely used by the employees of a company, rather than its board of directors or a business owner. Include people from middle and lower management levels who will ultimately be working closely with the software. Their user experience will give you key insights into the complexity of a particular software and decide accordingly.
Evaluate your need for the solutions available
An expense management software is not a one-size-fits-all solution. While one company may require a specific use out of an application, it is not at all necessary for you to want or need it for that use case. Therefore, be mindful of your needs versus what is available and choose that which fits your goals, not that which is popular.
Implement the right software
Once you have decided on the expense management software of your choice, it is time to introduce it into your technological stack. This can be a learning curve for your employees therefore be patient and allow some time for your employees to adapt to the new technology.
Choosing a financial tech stack for your business is a crucial decision, therefore be 100% sure that the software you’ve chosen can seamlessly integrate itself into your existing processes. If you want expense management software that is simple, scalable, and streamlined, then Volopay is the right choice for your business.
Factors to consider when choosing an expense management system
Selecting the right expense management system is crucial for ensuring it meets your business needs. Several factors should be considered to ensure the software aligns with your company’s goals and operational requirements. Below are key considerations to keep in mind when evaluating different options.
1. Scalability and flexibility
Scalability and flexibility are essential when choosing an expense management system, as your business needs may evolve over time. A scalable system can grow with your organization, accommodating increasing users, transactions, and complex workflows.
Flexibility ensures that the software can be customized or adapted to fit your specific processes and policies, providing long-term value and reducing the need for frequent upgrades or replacements.
2. Integration capabilities
Integration capabilities are a vital consideration, as the expense management system should work seamlessly with your existing tools, such as accounting software, HR systems, and ERP platforms.
Effective integration reduces manual data entry, minimizes errors, and ensures that all financial data is synchronized across your organization. This connectivity streamlines processes, enhances data accuracy, and provides a unified view of your company’s finances.
3. Security and data protection
Security and data protection are paramount when handling sensitive financial information. The chosen system should offer robust security measures, such as data encryption, secure user authentication, and regular software updates.
Compliance with industry standards and regulations, such as GDPR or SOC 2, is also crucial to ensure that your data is protected against breaches and unauthorized access, safeguarding your organization’s financial integrity.
4. User-friendly interface
A user-friendly interface is critical for ensuring that employees and managers can easily navigate the system without extensive training. The software should offer intuitive design, clear instructions, and accessible features that streamline the expense reporting process.
A system that is easy to use encourages adoption across the organization, reducing resistance and increasing the efficiency of expense management tasks.
6. Customer support and training
Customer support and training are crucial for ensuring a smooth implementation and ongoing use of the system. Look for vendors that offer comprehensive support options, including live chat, phone support, and online resources.
Additionally, training programs for employees and administrators can help maximize the system’s potential and ensure that users are well-equipped to handle any issues that arise, leading to a more successful deployment and user experience.
5. Cost and return on investment (ROI)
Cost and return on investment (ROI) are important factors when selecting an expense management system. While initial costs are important, it's crucial to consider the long-term value the system provides.
Evaluate whether the software offers features that justify its cost, such as time savings, improved compliance, and better financial visibility. A system that delivers a strong ROI can lead to significant cost savings and operational efficiencies over time.
Simplify tracking, approval, and reporting of expenses
What are the challenges in expense management system implementation?
Implementing an expense management system can bring numerous benefits, but it also comes with its own set of challenges.
These challenges can impact the overall success of the implementation and must be carefully managed to ensure a smooth transition. Here are some of the common challenges businesses may face.
1. Resistance to change
Resistance to change is a common challenge when implementing a new expense management system. Employees and managers may be accustomed to existing processes and reluctant to adopt new technology.
This resistance can slow down the implementation and hinder the effectiveness of the new system. To overcome this, it's essential to communicate the benefits clearly, involve stakeholders in the process, and provide adequate support to ease the transition.
2. Data migration
Data migration is a critical and often complex challenge when implementing a new expense management system. Transferring historical data from legacy systems to the new platform requires careful planning to ensure accuracy and consistency.
Any errors during migration can lead to data discrepancies and operational disruptions. Businesses must ensure that the migration process is well-structured, with thorough testing and validation to maintain data integrity.
3. Cost and return on investment
Balancing the cost and return on investment (ROI) is a significant challenge during implementation. While expense management systems can lead to long-term savings, the initial investment can be substantial.
Organizations must carefully evaluate the potential ROI by considering both direct and indirect benefits, such as time savings and improved compliance, against the upfront costs. Ensuring that the system aligns with the company's financial goals is crucial for justifying the expenditure.
4. Customization needs
Customization needs can pose a challenge, as businesses often require a system that aligns closely with their unique processes and policies. Off-the-shelf solutions may not fit perfectly, necessitating customization to meet specific requirements.
This can increase implementation time and costs and may require ongoing adjustments. Ensuring that the chosen system is flexible and can be tailored to your business’s needs is essential for a successful implementation.
5. International operations
For companies with international operations, implementing an expense management system can be particularly challenging. The system must accommodate multiple currencies, languages, and tax regulations, which adds complexity to the setup and maintenance.
Ensuring that the software is capable of handling these variations without compromising on accuracy or compliance is crucial for global businesses. Additionally, support for different time zones and cultural considerations may be needed.
6. User experience
A poor user experience can hinder the adoption and effectiveness of the expense management system. If the interface is not intuitive or the system is difficult to navigate, employees may struggle to use it efficiently.
This can lead to frustration, errors, and reduced productivity. To address this, it's important to choose a system that prioritizes user experience, with easy-to-use features and a design that supports seamless interactions.
7. Employee training and adoption challenges
Employee training and adoption challenges can significantly impact the success of the new system. Ensuring that all users are adequately trained and comfortable with the new system requires time and resources.
Some employees may find it difficult to adapt to new workflows or technology. Providing comprehensive training programs, ongoing support, and clear communication about the system's benefits can help facilitate smoother adoption and ensure that the system is used effectively across the organization.
Best practices for using expense management systems
Implementing an expense management system is just the first step; optimizing its use is key to maximizing its benefits. Adopting best practices ensures the system functions efficiently and aligns with your organization’s goals.
Here are some essential practices to follow for successful expense management.
1. Establishing clear expense policies and guidelines
Establishing clear expense policies and guidelines is fundamental to the effective use of an expense management system. These policies should outline acceptable expenses, spending limits, and submission deadlines, ensuring that all employees understand the rules.
Clearly defined guidelines help prevent confusion, reduce the risk of non-compliance, and make it easier for employees to follow the correct procedures, thereby streamlining the expense reporting process.
2. Encourage employee compliance and adoption
Encouraging employee compliance and adoption is crucial for the success of an expense management system. Educate employees on the importance of using the system and how it benefits both the organization and themselves.
Provide training and resources to ensure they are comfortable with the system’s features. Recognizing and rewarding timely and accurate expense submissions can also motivate employees to adhere to the policies and use the system effectively.
3. Regularly review and update expense policy
Regularly reviewing and updating your expense policy ensures that it remains relevant and aligned with the current business environment. As your organization grows and changes, so too should your expense policies.
Periodic reviews allow you to adjust spending limits, refine guidelines, and address any emerging compliance issues. This proactive approach helps maintain control over expenses and ensures that the policy continues to support the company’s financial objectives.
4. Leveraging analytics for expense optimization
Leveraging analytics for expense optimization allows businesses to gain valuable insights into spending patterns.
Expense management systems often come with built-in analytics tools that can highlight areas of excessive spending, identify cost-saving opportunities, and track budget adherence.
By regularly analyzing this data, companies can make informed decisions to optimize expenses, negotiate better deals with vendors, and improve overall financial efficiency.
5. Ensure data accuracy and audibility
Ensuring data accuracy and audibility is essential for maintaining trust in the expense management process. The system should be regularly monitored for accuracy in data entry and processing.
Automated checks and balances can be put in place to catch errors or inconsistencies. Maintaining a clear audit trail is also critical, as it allows for easy tracking of transactions and compliance with internal and external audit requirements.
6. Monitoring system performance
Monitoring system performance is vital to ensure that the expense management system operates smoothly and efficiently.
Regular system checks can help identify any issues or bottlenecks that may be affecting performance, such as slow processing times or user interface glitches.
Keeping the system updated with the latest features and security patches also helps maintain optimal performance and protects against vulnerabilities.
7. Integrate with accounting software
Integrating with accounting software is a best practice that streamlines financial processes and ensures data consistency.
This integration allows for the automatic transfer of expense data into the company’s accounting system, reducing manual entry and minimizing errors.
It also ensures that expense information is readily available for financial reporting, budgeting, and auditing, enhancing overall financial management.
8. Enforce timely expense submission
Enforcing timely expense submission is crucial for maintaining up-to-date financial records and effective cash flow management. Establish clear deadlines for submitting expenses and use the system’s automated reminders to encourage compliance.
Timely submissions not only help in accurate financial reporting but also ensure that employees are reimbursed promptly, fostering trust and satisfaction within the organization.
9. Regularly monitor expenses against budgets
Regularly monitoring expenses against budgets is a proactive approach to managing business finances.
Expense management systems allow for real-time tracking of spending in relation to budget allocations, helping managers identify and address potential overages before they become issues.
This ongoing monitoring ensures that the company stays within its financial constraints and can adjust spending as needed to align with strategic goals.
10. Conduct a periodic review of the system
Conducting a periodic review of the expense management system helps ensure it continues to meet the organization’s needs. This review should assess the system’s performance, user satisfaction, and alignment with business objectives.
Gathering feedback from users and analyzing system data can reveal areas for improvement or highlight new features that could enhance functionality. Regular reviews help keep the system effective and relevant in a changing business environment.
Achieve better financial control and efficiency
Why choose Volopay expense management software?
Volopay offers a comprehensive expense management solution designed to simplify and optimize your company’s financial operations.
With its advanced features and user-friendly interface, Volopay helps businesses manage their spending more effectively while providing real-time insights and control.
Here’s why Volopay is an ideal choice for your expense management needs.
1. Create business budgets to manage company spending
Volopay allows businesses to create and manage budgets with ease, ensuring that spending stays within predefined limits.
The software enables companies to allocate funds to different departments or projects, track expenses against these budgets in real time, and receive alerts when thresholds are approaching.
This feature helps maintain financial discipline and prevents overspending, giving businesses greater control over their financial resources.
2. Get accurate company spending reports
With Volopay, businesses can generate accurate and detailed spending reports that provide valuable insights into company expenses. The software offers customizable reporting options, allowing users to filter data by categories, departments, or time periods.
These reports are essential for monitoring spending patterns, ensuring compliance with company policies, and making informed financial decisions. Accurate reporting also simplifies the auditing process and improves overall financial transparency.
3. Real-time visibility of all your business spending
Volopay provides real-time visibility into all business spending, giving companies a clear and up-to-date picture of their financial activities.
This feature allows managers to monitor transactions as they occur, identify any discrepancies or unusual spending patterns, and take immediate action if necessary.
Real-time visibility ensures that businesses can stay on top of their finances, manage cash flow more effectively, and make timely decisions.
4. Control spend before it happens
Do you wish to enforce some expense control? Volopay’s rule-based, customizable expense policy feature can be configured right into the software.
With company expense cards, you can set a spending limit that automatically declines any transactions that violate the rules.
Furthermore, you can dedicate the card to particular vendors so that the money allotted for SaaS tools isn’t being used to buy a cup of coffee!
5. Send instant reimbursement to employees
Your employees never have to wait for months to get compensated for out-of-pocket expenses. You can assign different reimbursement roles such as admin, accountant, and members and set approval workflows.
Your employees receive their reimbursements directly in their registered bank accounts. You can pay them either instantly or schedule them for month-end payments.
6. Make expense reporting a breeze for employees
If your employees have been with slacking with their business and travel expense reporting, it could be because they have to do it manually. But not anymore! we brings you the ease of automated expense reporting.
Upload invoices, make payments through our platform, and we instantly records the transaction. Or simply upload the proof of purchase along with the value for reimbursement.
You can also unlock the secrets to efficient travel and expense management with our comprehensive guide! If you're looking to streamline your business travel processes, optimize expense tracking, and gain valuable insights, this article is a must-read. We cover everything starting from setting of travel policies to selecting the right expense management software for managing receipts, navigating reimbursement process and much more.
7. Set approval policy for fund requests and reimbursements
Volopay offers customizable approval workflows that allow businesses to set specific policies for fund requests and reimbursements. These policies ensure that all expenses are reviewed and approved by the appropriate personnel before funds are disbursed.
This feature not only enhances control over company spending but also ensures compliance with internal policies, reducing the risk of unauthorized or excessive expenses.
Suggested read- How to easily automate expense approval process?
8. Manage recurring payments with unique subscription cards
Paying for different SaaS tools using different payment methods? Create a virtual card for each subscription, set a recurring limit, and that’s it! You never have to worry about going over budget.
All our cards are pre-loaded with limited amounts for easy fraud prevention. With a real-time view of all your subscriptions, manage all your SaaS spends and avoid duplicate SaaS costs across departments and functions.
9. Audit expenses and stay compliant
We helps you to stay on track for audit compliance with our 3-way matching reconciliation feature. Every transaction is accompanied with necessary information (invoice, bill generation, proof of payment) and instantly synced with your accounting system for an auditing and compliance check. You can facilitate all your AP processes and export it all for audit season.
10. Leveraging analytics for expense optimization
Volopay leverages advanced analytics to help businesses optimize their expenses. The platform’s analytics tools provide insights into spending trends, identify cost-saving opportunities, and highlight areas where budgets can be adjusted for better efficiency.
By analyzing this data, companies can make strategic decisions to reduce unnecessary costs, improve resource allocation, and enhance overall financial performance.
How do subscription payments work with Volopay virtual cards?
Companies today are relying on SaaS-based tools to run their business. These SaaS-based tools are often offered on a subscription model. As a business owner, it is important to spend money on these subscriptions wisely as they can rake up quite a big expense. Furthermore, if your teams are building their tech stacks with duplicate subscriptions, that is quite frankly, an expensive waste of time and money.
Volopay solves your SaaS problems with effortless subscription management. By bringing all your subscription payments onto our platform, you can experience a holistic view of all current subscriptions, eliminate duplicate or unused subscriptions and simplify your tech stack.
Want to use SaaS on a trial basis but don’t want to share your business credit card information? Volopay’s unlimited virtual cards offer burner cards for those one-time expenses that expire after use. For your regular subscriptions, use recurring cards that get replenished with a set limit each month for as long as you need them.
Eliminate duplicate costs by assigning one card to one vendor with a dedicated cardholder. All our cards are VISA-powered and 3DS secure so all your payments are safely processed. In case of suspicious fraudulent activities, you can easily block or freeze your card to prevent it from being used.
What is approval policy on Volopay?
To provide a robust structure to company operations, an approval policy is an essential aid in request management. It helps to organize different types of requests as per the expense approval system laid down by the company.
Depending on the request, you can chart out an approval policy with multiple approvers on each level to maintain a healthy workflow.
Our policies streamline the request structure for you and help you budget your expenses better. By removing the obstacles that hinder traditional approval policy such as ambiguities and complex work hierarchy, we offers a crystal clear multi-level approval for transactions that require compliance.
As an admin, you can set up 5 levels of approval workflow for requests and reimbursement.
Pre-approval policy
Under this policy, when the request owner is one of the first-level approvers, the request gets automatically approved, but only for the first level. The request then goes to second-level approvers and so on.
Auto approval policy
Under this policy, the request owner can get their request approved only if the amount required is less than the limit set in the approval policy. So if Alex from the sales team requests $50 on a card with a spending limit of $100, their request gets auto-approved.
Multi-level approval policy
For proper compliance, we offers a multi-level approval policy. When a member puts in a card request or an expense claim, the first-level approver gets instantly notified. After the first approver approves the request, approval is triggered for the second level, and so on.
Maker checker policy
We offers an additional layer of security with our maker-checker policy. In this, if the request owner is the only approver, the request will not be approved as there should always be another approver. This policy helps in reducing instances of fraud within a company. Maker-checker policy can also be disabled, according to your needs.
How does approval policy work in Volopay?
Our approval policy feature is used by companies that juggle a lot of teams and cost centers. It is particularly beneficial for businesses that require different approvers for different spending limits within different teams. The approval policy can be customized in two ways:
You can create an approval workflow specific to a particular team. For example, if you are creating an approval workflow for the marketing department, then you can set multi-level approvals with dedicated approvers. This ensures that only valid requests reach the final decision-maker that is worth their time.
Another way to create an approval workflow is the spend-centric approach, where you can set different approvers for different amounts of spending. This way your teams don’t have to worry about going over the budget. This feature is useful for mid-market and large companies where a lot of flexibility is required when creating approval workflows.
Here’s how you can use these workflows for different kinds of approvals:
You can set the approval policy at a global level for reimbursement. Under this, only one approval policy will work for all kinds of reimbursement claims. Approvals on a team level cannot be set for reimbursement.
Card fund requests can be set on two levels - global & team. Under global, only one approval policy will work for all kinds of card fund requests across teams and departments. Under team, you can set the approval policy as per individual departmental budgets.
Bill Pay approvals can also be set on two levels - global & team. Under global, only one approval policy will work for all kinds of bill payments made in the company. Under team, Bill Pay approval policy can be implemented as per individual departmental budgets.
What are submission policies on Volopay?
Is your finance team tired after running around employees for missing receipts and information on a reimbursement claim or a card expense? Our submission policy easily solves this pertinent issue and allows admins to set mandatory validation fields on any card expense, claim, or payment made by employees.
Using our policy, you set permanent conditions such as receipts, notes, accounting, and other custom fields. Having a submission policy saves time and money. It ensures that no incomplete claim or expense gets processed without fulfilling all the necessary details in every single transaction. This also makes for a smoother auditing experience later.
Submission policy on Volopay can be divided into two:
1. Cards
Any expense made by an employee using our corporate expense cards must be accompanied by mandatory details such as receipts and notes to complete and verify. To set submission policies on cards, they must be attached to their respective departmental budgets to be properly enforced.
2. Reimbursement
A reimbursement claim can be submitted only until all the mandatory fields are filled by the employee. Note that for reimbursement, you only need to attach one single submission policy.
Looking to streamline your reimbursement processes, ensure accuracy, and maximize efficiency? Discover our ultimate guide to travel expense reimbursement to understand how to effectively track and report expenses, and avoid common pitfalls.
Get the best expense management software
Volopay is a modern expense software for business leaders. From automated expense reporting to sleek company expense cards and smart expense tracking, we offers a host of pragmatic solutions to streamline your accounts payable processes and recalibrate for efficient expense management. Experience the smoothest expense management software for your business.
Check out our detailed guide on the top Expensify alternatives and discover why Volopay stands out as the best option for your business in 2024. Learn how Volopay offers more features, better pricing, and a streamlined user experience compared to Expensify and other competitors.
Simplify your expense management process with Volopay
FAQs
Without expense management software, you can keep track of your business expenses by tracking your bank and credit card statements, storing paper-based and digital receipts for reimbursement and audit purposes, and maintaining a dedicated spreadsheet for all your accounts payable.
Or you can automate your entire AP workflow using Volopay and save precious time and money wasted using traditional expense management practices.
Multi-level approvals in Volopay allow you to create an approval policy for various requests and claims such as card fund requests, reimbursement, and bill payments.
You set up a multi-level approval policy with multiple approvers in each level, up to 5 levels. While members can put in requests for approvals, only administrators can create multi-level approvals. You can also appoint members as approvers but a member cannot be the sole approver of their own requests.
Unlike traditional expense management practices, you do not have to safely store countless paper-based and digital receipts on our platform. Volopay lets you upload an image or PDF of your receipt and attach it with the necessary transaction for efficient receipt management.
Once approved, you can also export the transactions along with the necessary documents for a smoother auditing process.
Volopay offers rule-based expense policy enforcement that allows you to configure it into the system through submission and approval policies. This prevents employees from processing payments and claims without surfacing the necessary documentation needed for verification, such as invoices, receipts, and notes.
An expense management system enhances employee experience by streamlining the process of submitting and tracking expenses. It reduces manual paperwork, speeds up reimbursements, and offers real-time updates, making the entire process faster and more user-friendly.
Expense management software handles multi-currency transactions by automatically converting foreign currencies into the company’s base currency using up-to-date exchange rates.
It also tracks and records these transactions accurately for reporting and compliance purposes.
Yes, expense management systems can handle travel expenses, including flights, accommodation, meals, and transportation. They often integrate with travel booking tools, allowing employees to submit travel expenses easily and ensuring policy compliance.
An expense management system handles approvals and workflows by automating the process. It allows businesses to set up customizable approval hierarchies, ensuring that expense reports are reviewed and approved by the appropriate personnel on time.
Yes, small businesses can benefit from expense management systems by improving efficiency, reducing manual errors, and gaining better control over their finances.
These systems help small businesses manage their expenses more effectively, leading to cost savings and improved cash flow.
Yes, many expense management systems offer integration with payroll systems. This integration allows for seamless reimbursement of employee expenses directly through payroll, ensuring timely payments and reducing administrative workload.
Expense claims that can be automated include travel expenses, office supplies, meals, and transportation. The system can automatically categorize and approve recurring or policy-compliant expenses, streamlining the process and reducing manual intervention.