Every enterprise can only achieve and sustain profitable growth by simultaneously increasing revenue and controlling costs. Expense management software helps companies and startups control costs by automating a crucial financial process.
The features provided by the software make it easier for businesses to track, process, reimburse, and audit various expenses incurred by employees for business processes. Also, the software helps users find opportunities to control costs by sharing actionable insights gained by analyzing employee expense data.
Companies leverage cloud-based expense management software to automate a time-consuming process without increasing infrastructural costs. They boost the software’s functionality by integrating it with business tools like accounting and business travel management software.
Leading providers these days update their expense management solutions regularly. Some providers keep adding innovative features to the software, while others leverage artificial intelligence, data, analytics, and other Industry 4.0 technologies.
That is why; expense management software evolves consistently like other special-purpose software applications. Also, it is being impacted and shaped by new technologies and emerging trends. We can predict expense management software’s future based on existing and emerging trends.
9 Trends That Will Impact and Shape Expense Management Software
1. Superior Mobile User Experience
Working professionals these days find it more convenient to access enterprise solutions using mobile devices. Leading providers have already updated their expense management tools for mobile devices. They ensure users can access the software seamlessly using desktops, laptops, smartphones, or tablets.
They enable employees to generate digital expense reports and send expense approval requests directly using the expense management solution as a mobile app. But providers will continue to optimize the software’s mobile user experience to drive post-implementation acceptance and adoption.
2. Integrated Software Application
Leading providers these days complement their expense management tools with integration APIs. Enterprises can use the API to integrate the software with existing financial enterprise and financial software applications.
But many enterprises these days prefer integrated systems that automate multiple business processes. For instance, companies implement integrated travel and expense management software to automate business travel and expense management processes.
Likewise, many businesses enhance data accuracy and integrity by making the expense management system a part of a single platform. That is why; travel management solutions will be available as standalone software and integrated solutions shortly.
3 .Faster Expense Report Generation
As highlighted by a recent survey, companies need help to reduce expense report generation time. Most expense management solutions automate the expense report generation and submission process. Using mobile devices, they enable employees to scan invoices, receipts, and bills.
Also, they generate automated expense reports by capturing data from scanned invoices. But providers will speed up expense report generation to help enterprises solve this important expense management challenge. They will leverage intelligence technologies to help employees reduce the time and effort required to generate and submit expense reports.
4. Receipt Management Simplification
Like expense report generation time, receipt management is one of the most significant challenges in expense management. Expense management solutions simplify receipt management by digitizing invoices and storing them in a centralized location.
Approvers can access digital receipts while reviewing expense claims submitted by employees. Likewise, auditors can access digital receipts while conducting expense audits. But enterprises will prioritize software that stores digital receipts, secures and enables authorized employees to access them seamlessly.
5. 100% Expense Policy Compliance
Most enterprises these days support hybrid work models. They work with employees who come to offices, work from home, and work remotely. By defining expense policies clearly, they make it easier for employees to differentiate reimbursable expenses from non-reimbursable expenses.
Companies need expense management software that ensures policy compliance. Also, they prioritize software that sends automated notifications each time a policy violation is detected. Providers will update expense management tools regularly to help businesses reduce costs by ensuring 100% policy compliance.
6. Real-Time Expense Tracking
Finance teams need real-time spending visibility to streamline crucial activities like budget management and cash flow management. Expense management software facilitates real-time expense tracking by featuring dashboards.
Managers can use the dashboard to identify paid, unpaid, and pending employee-initiated expenses. The dashboard simplifies expense monitoring using graphics and supporting custom report generation. Providers will optimize expense management solutions to help users track employee expense data seamlessly and accurately.
7. More Customization Options
Cloud-based expense management solutions are easier to customize and integrate than conventional expense management software. But each enterprise wants to customize and integrate the software according to its precise needs and policies.
The next-generation expense management solutions will be developed with modular architecture. The features and tools they provide will work independently without depending on each other. Hence, enterprises can customize the expense management tool without any restrictions.
8. Data-Driven Insights
Most expense management solutions currently analyze employee expense data using data analytics. But they gain actionable insights by analyzing historical expense data using descriptive analytics. The next-generation expense management software will use both descriptive and predictive analytics.
Predictive analytics will make the software effective in accurately predicting expenses. Predictive and prescriptive analytics will help decision-makers boost budget planning, resource allocation, cash flow management, and other financial activities.
9. Intelligence Technologies
Artificial intelligence (AI) technologies have been transforming all software applications, including expense management software. The next-generation travel management tools will come with AI-powered chatbots. The chatbots will enable finance managers to gain data-driven insights, detect emerging trends, and find vendor negotiation opportunities.
Also, they will eliminate revenue leakages by detecting and flagging suspicious transactions and irregular spending patterns early. The finance managers can receive the fraud alerts sent by the software to prevent expense fraud committed by employees using innovative tactics. The AI-driven expense management software will help enterprises control ongoing costs in several ways.
Expense management software creates opportunities for enterprises to control costs by automating a complex financial process. In addition to providing useful features, most expense management solutions leverage intelligence technologies.
But they continue to evolve consistently. The next-generation expense management tools will have many advanced features and leverage new technologies. The existing and emerging trends help us predict some critical aspects of the futuristic expense management software.