The concept of an organized, planned program should be the base for increasing profits through cost reduction. There can be no basis for determining and evaluating costs unless adequate records are maintained through a proper accounting system. Simply slashing any and all expenses un-methodically cannot be a justifiable answer to reduce cost. Instead, businesses must understand the nature of expenses and how expenses inter-relate with sales, inventories, cost of goods sold, gross and net profits. Reduction of specific expenses doesn’t imply reducing cost, but you can achieve greater control by managing them effectively. Today, with businesses trying to get control over their expenses they need to try to get beyond the traditional ERPs. This is exactly what the CFOs of major organizations are trying to achieve. So why are CFO’s looking to do that? Major reasons being:
- Reduce Spend and Stay within Budget
- Reduce Cost of Processing (A/P, Procurement)
- Reduce Occurrences of Malpractices, Frauds, and Non-Compliance
- Have Timely & Accurate Closure of Expense Accounting
- Build a good & professional relationship with employees, suppliers, auditors and regulatory bodies
Having an ERP today is just not enough and businesses need a software to manage and control expenses that also compliments the ERP. This is where the need for an expense management software steps in. There are many types of software which provide expense management solutions which cater to different needs of the industry like travel expense management software, employee expense management software, pay to procure software, invoice management software with other categories and sub-categories.
Over the years, organizations have been looking for ways to cut on their unwanted expenses, such as employee expenses, travel expenses, etc. Through employee’s expenses management software, this goal can be successfully achieved with the higher turn around time.
A complete expense management system incorporates the following features.
- The Purchase Orders automation
- DoA implementation
- Budget control
- Vendor invoices checks
- Supplier invoices preparation
Expense management software integrated with the ERP has helped businesses cut on all their expenses and has offered many benefits such as:
- The management can approve bills even without logging
- They can claim input credit for GST with ease
- Can track paper receipts easily
- Provisioning of expenses is now accurate
In today’s business dynamics, ERP’s have limited ability and cannot handle the complexities of managing different expenses. Many businesses have realized that they require specialized ‘post-modern ERP’ solutions which take care all the activities in one go, helping them in reducing spending, cost of processing and risks to a great extent.