Usually when people talk about the best ways to improve a business, expense report management can be an important factor in that process. But then the thinking goes that this kind of management is only practical at a larger scale. Only really big companies, with a flotilla of marketing and other executives constantly jet-setting around the world can justify the cost of that kind of system.
Nothing could be further from the truth. In fact, if you’re a small or medium sized business, good expense report software to manage your finances could be even more critical to your success. Because every dollar means even more, and savings on travel expenses can make a big difference.
Why It Matters
In the United States alone there are over 30 million small-to-mid-sized businesses. That’s a lot of financial activity at a smaller scale. Obviously these businesses don’t have access to a huge pool of financial resources or staff, and get through the day with a combination of hard work and picking their financial battles carefully. One area where they often choose to be frugal is in managing travel expenses.
This can sometimes be a big mistake. Travel expenses can often be a “black hole” for the finance department, because a potentially huge amount of company money can “disappear” during a business trip. Some of it is easy to account for, like actual cost of transportation and lodging. Others are baffling. Did that client dinner really cost that much? And if it didn’t, where did the rest of the per diem money go? How did we lose track of that money?
Expense report software helps in two critical ways. It makes it much easier to file an expense report as it happens, thanks to being on app that even takes photos of the receipt. And this software can provide important data for analytics that gives good information on how, where, when and why money is being used. It finally gives smaller business access to the same data analysis tools that bigger companies pay other companies to provide them with. And that means better decisions about how to use company money.