For small and medium businesses, managing expenses can be a challenging task, often hindered by limited resources and personnel. This is where expense management software can be an invaluable tool. Today, we’ll explore what this software does, how much it generally costs, and the benefits of using this type of software for small and medium businesses. If you’re interested in changing how your business handles expenses, you can find expenses management software options with an online search right now.
Shutterstock: NicoElNinoWhat is Expense Management Software?
Expense management software is a type of technology solution that helps businesses with a variety of expense-related tasks. These tasks generally recording and categorizing expenses, generating expense reports, managing approvals and reimbursement, and providing a real-time view of expenses. They simplify the processes around expenses
There are many expense management software solutions on the market, but some of the most popular ones are:
- Expensify, which offers features like automatic receipt scanning and expense report generation1
- Concur, which integrates with popular accounting systems like QuickBooks and Sage, and offers a mobile app for on-the-go expense tracking2
- Zoho Expense, which allows for customization of expense categories and offers a user-friendly interface.3
How Much Does Expense Management Software Cost?
The cost of expense management software varies depending on the provider, the features offered, and the number of users. Some providers offer a basic version of the software for free, while others charge a monthly or annual subscription fee. The cost can range from a few dollars per month for basic versions to several hundred dollars per month for advanced versions with more features and capabilities.
Some providers may also charge an additional fee for add-ons, such as credit card integration, receipt scanning, and mobile app access. For example, Expensify prices range from $0 (for either a limited number of monthly expenses or for limited features) up to $18 per user, per month.4
The Benefits For Businesses
Expense management software offers numerous benefits for small businesses, making it an essential tool for managing finances. From streamlining expense tracking to reducing errors and fraud, this software can help small businesses save time and money. Below we’ll discuss five significant benefits in more detail.
1. Security
Financial data security is a major concern for small and medium businesses, who may have limited resources to invest in security measures, making them vulnerable to cyber attacks and data breaches.
Expense management software is specifically designed to be secure, storing data in an encrypted format to make it more difficult for hackers to access. Additionally, many providers offer advanced security features, such as two-factor authentication and access controls, to further protect sensitive financial data.
2. Automation
Automation is one of the key advantages of using expense management software. Manually tracking and recording expenses can be a time-consuming and error-prone task, taking up valuable time and resources that could be better spent on other business activities.
Automated data feeds can collect, process, and store all financial information, simplifying the process of reporting expenses and income. Most software can even integrate with accounting software for easier bookkeeping.
3. Efficiency
Using expense management software can improve efficiency by making the process of tracking expenses and managing finances more streamlined. Business owners can access financial data quickly and easily, allowing them to make smarter decisions faster, ultimately leading to increased profits.
4. Tracking and Monitoring
Real-time tracking and monitoring is another advantage of using expense management software. Business owners can keep tabs on spending and quickly identify problem areas, allowing them to make changes and keep finances in order.
5. Accuracy
Expense management software can help increase accuracy, reducing errors and the chance of fraud. With features such as automatic receipt scanning and categorization, the software can ensure that all expenses are accurately recorded and accounted for. Additionally, the software can enforce compliance with company policies and government regulations, helping businesses avoid costly mistakes.
By having an automated system in place to track expenses, business owners can also gain a better understanding of where their money is going and quickly spot any irregularities. This can be particularly helpful for multi-site businesses or businesses with multiple employees who are regularly travelling for work.
Start Your Search
If you’re looking for expense management software for your business, it’s important to do your research and compare your options carefully. Search online for reviews and comparisons of different software providers, taking into consideration your business needs, size and budget.
There are many websites and resources that offer detailed reviews and ratings of expense management software, making it easier to compare features, pricing, and customer support. By taking the time to review your options carefully, you can find the expense management software that will serve your business the best.