Work from home successfully with automated expense management

Remove old expense management barriers

May 17, 2022
Digitization and automation have radically changed the way we work. Automating business processes provides more flexibility, increases efficiency and provides a good foundation for further innovation. This has become even more apparent since 2020, when digitization and automation gained momentum due to the massive transition to home or hybrid work.

And while digitization tends to focus on traditional technology, such as video conferencing tools or IoT, our HR and finance departments have also changed a lot.

One business process that is often overlooked in digital transformation is how companies manage their business expenses. This is especially true for recurring expenses, subscriptions and invoices. Employees are often burdened with the time-consuming task of calculating their expenses at the end of each month, while at the same time having other tasks or important deadlines to deal with. This affects not only their well-being but also their productivity.
For employers, this can lead to missing or delayed reporting of expenses. In addition, a lot of time has been wasted on processing invoices, and it is difficult at the end of the month to map all costs via several platforms. Many large companies therefore fail to pay suppliers’ invoices on time. As a result, the legal payment period has now been adjusted from 60 days to 30 days.

Three tips
The following are three tips for companies looking to tackle their expense management this year.

Participate in the economic transformation
Automation has become an absolute necessity in most sectors and it is important to start on time. Industry 4.0 is characterized by virtualization and interconnection of smart technologies to optimize processes and increase revenue. These technological advances are also visible in the financial sector, especially in the areas of process automation and digital innovation. Therefore, it is also referred to as Finance 4.0.
This transformation has also changed the role of CFO and the way people make financial decisions. Experts at PwC Holland point out that CFOs should focus on data analysis and predict and monitor things in real time – not for the present situation, but with an eye to the future.
Automation of expenses and invoice processing are well suited for this. An AI solution for consumption management provides increasingly valuable data and insights into your staff’s consumption patterns and behaviors. Or about the company’s total expenses over the life of a project.
Automating expenses and consolidating business expenses into one effective tool can have a significant impact on your company’s performance and goals, as well as the well-being of your employees. With the right tools, users get more control, overview and transparency in a secure, fast and reliable environment without the need for a completely new infrastructure.

Give teams control over their expenses
Although companies understand the need for more autonomy, it is difficult to know where to start. Gone are the days when only the most experienced team members in the office received a business credit card. Today, people all over the world work and often with different currencies. And different job titles come with different responsibilities and different expenses – from online advertising and customer lunches to sales tools and travel expenses.
One solution is the introduction of smart, virtual corporate credit cards. Switching from credit cards to smart business credit cards makes it possible to control expenses centrally. This gives employers and employees more transparency and control. In addition, it takes significantly less time as receipts and transactions are automatically matched. There are also many other benefits for businesses. For example, no card fees, transaction fees or currency surcharges are charged.
Virtual cards also increase employee satisfaction and can keep them loyal to your business for longer. For finance departments, automation of consumption via virtual maps can reduce reporting errors and improve business continuity in general.

Remove old barriers to expense management
Automation has removed many barriers to effective implementation of consumption management. Traditionally, all expenses had to be collected (but also saved!) And then manually scanned and categorized. This process takes a lot of time and requires approval from several people. Today, and with the help of AI and machine learning, it is possible to use an intelligent expense management solution that recognizes text and handwriting, sorts all expenses instantly and immediately prepares the necessary documentation.
It is also no longer necessary to revise your current systems. Software companies such as Yokoy now offer a platform that integrates with other existing systems. This is especially relevant for companies that are currently working with many other platforms or have an ecosystem that is already fully set up.
There is also no need to spend huge amounts of financial resources on automating expense management, especially given the rising costs for businesses. According to McKinsey, companies can save up to 80 percent of their total cost by using an expense management tool, providing more time and resources to adopt innovative solutions and invest in employees’ knowledge and skills.

In short, automation of consumption management can have a huge impact on business processes and the well-being of employees and employers. Small changes and updates to the way expenses, invoices, and credit card transactions are handled and managed can help businesses continue to thrive in the new world.

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