Expense management software is used by companies to manage and audit business-related expenditures by their employees. The software allows businesses to efficiently manage employee expense reports. As technology continues to grow and shape our everyday lives, so too will the use of expense management software by businesses.
Expected Future Growth
A recent forecast by Technavio predicts that global travel and expense management software market will grow at a compound annual growth rate of 6.96% and 7.70% respectively between 2016 and 2020. They expect that the industry will post revenues of more than $3 billion USD by 2020.
Factors Driving Growth
There are a number of factors behind the expected growth within the industry.
- Mobilization – The smartphone has become more and more integrated in society’s daily lives. Uninterrupted connectivity is a must, and apps that both execute and track expenses are in high demand.
- Transparency – When transactions involve company funds, the need for transparency and visibility becomes significantly more important. In addition to individual expenses, expense management software can allow businesses to clearly see spending patterns and trends, both from individual employees and from the company as a whole.
- The Mid-Market – Mid-size enterprises are actually leading the way, recognizing that visibility and management help support corporate growth. As they constantly try to identify cost-saving opportunities and enhance operational efficiency, mid-sized enterprises are leading the charge toward travel and expense management software.
- The Bottom Line – Eliminating the need for manual expense entry maximizes efficiency. Reports are completed more quickly, with fewer errors.