Expense management refer to the system and/or systems implemented by a business to process, pay (reimburse), and audit employee-initiated expenses. These expenses include but are not limited to costs incurred for travel and entertainment. The common expenses that are committed by employees during business trips or business-related travels are the following:
1. Hotel Accommodation – Booking on hotels are usually in advance and the expenses are predetermined. However, in cases of extensions of stay due to some different factors of the transactions of the employee, obliging them to spend that is outside from the allocated budget for the certain situation. The money usually are coming from the own pocket of the employee and usually reimbursed after the trip.
2. Transportation – Car rentals are the usual cause of the expenses or some are just commuting.
3. Meals – Sometimes part of the accommodation provided by hotels however most of the times it is outside from it so employees are then spending for this.
4. Miscellaneous – Other expenses incurred which is not part of the original plan or budget. Examples are tools that need to be bought which is necessary to be used by the employee as asked by the situation.
Now these common expenses can be very difficult to track so an expense management system should be implemented in a company. Aside from this an expense management includes also policies and procedures which govern such spending, as well as the technologies and services utilized to process and analyze the data associated with it. There are two systems that a company can be considered to use to be implemented on their business operations. Here are those different pengeluaran hk methods:
1. License Software Implementation. This requires business to install and implement an expense software to the company’s server and allow the organization to access it. It requires them to set-up the intranet of the organization or extranet if you will need it to be accessed outside the company. Intranet is a network that allows employees and members of the organization to have an access of the data and information of the company while an extranet allows employers to have an access of the data from outside the company. Extranet will be very useful when employees are traveling a lot (as part of their business operation) and need to access the system online. However, this method will be very costly because of the hardware and software investment plus the implementation cost.
2. Expense Management Software from SaaS (Software as a Service) providers. This is a web-based expense management application that is managed by a 3rd-party company. This let companies to store their expense data and information through a remote server, allowing them to access it anytime and anywhere. The advantage of this system against the latter is it cuts-off the hardware, software, installation and implementation cost of the previous mentioned system. This provides much cheaper way of managing your expense plus an anywhere-access management system that increases both the efficiency and productivity of the company’s employees.
If your company is a small to mid-size one, it is more practical to invest on expense management software from SaaS rather than acquiring a very expensive licensed. It is the most affordable way of efficiently improving the accuracy and speed of the company’s expense tracking system and expense report preparation without the hassle of the maintenance of the software.