Henry Adams’ Journey to Seamless Expense Management and VAT claim success
From 20 minutes to 3 minutes
resulting in an 88% reduction in the required time to fill in expense reports.
67% increase in VAT claims
leading to a substantial financial gain for the company.
Tripling savings: How Capture Expense redefines cost-effectiveness for Henry Adams
Henry Adams is a reputable real estate agency with a rich history of serving clients since its establishment in 1990. Known for their expertise, professionalism, and personalised approach, they are dedicated to helping individuals and families find their dream homes across various locations.
Henry Adams’ typical expense costs £25.71 to process, they average 30 reports per month for a total of £771.30. Choosing Capture Expense is expected to reduce costs to less than one-third of the current expenditure.
Capture Expense has truly transformed the way we manage business expenses at Henry Adams. Their features dedicated to reimbursements have streamlined the entire process, ensuring that our team is reimbursed promptly without the need for extensive manual intervention.
– Project Leader
The challenge
Manual expense process: Using spreadsheets to fill out expense forms increased their workload and potential for errors.
Lack of automated approval process: Resulting in delays in approval cycles, lack of accountability, and potential for uncontrolled spending.
Digital expense claims: The implementation of AI-powered OCR ensures real-time processing, automatically creating claims or attaching receipts directly to credit card transactions, significantly reducing manual effort and improving efficiency.
Automated expense approvals: Capture Expense offers a flexible multi-level approval system. Reports can have any number of approval stages, based on user or cost centre criteria, and the value of the claim can determine the appropriate approver and the number of stages required.
Real-time expense analytics: Empowers users with instant access to company spending data, facilitating strategic decision-making and personalised budget planning through dynamic views tailored to individual business roles.
The benefits
Embrace a fully digital, paperless system with advanced receipt management.
Leverage advanced OCR technology to minimise manual entry, enhance automation, and elevate system intelligence.
Gain access to extensive reporting capabilities and unlimited analytical depth through the use of tags.
Open banking for commercial credit cards
Reimbursements for out of pocket claims
Seamless integration with over 50 back-office systems.
Capture Expense’s streamlined process for expense submission, approval, and integration has reduced the administrative workload, leading to significant cost savings.
Single view of spend
The management team has complete data overview to identify trends, monitor spend and keep on top of budget and cash flow.
Multi-stage workflow approval
Our system offers full customisation, allowing Capture Expense to seamlessly align with our client’s intricate, multi-layered expense approval workflows.
capable of managing expenses for multiple sites including the UK, Germany, Singapore, Hong Kong, Australia and New Zealand.
A strategic move
from their old system, which faced issues such as poor support and high costs, to a more efficient, cost-effective and user-friendly solution.
Capture Expense enhances the efficiency of expense processing across B&H Worldwide’s global operations.
B&H Worldwide was established in the UK in 1988 and has grown into a multi-national organisation and market leader in the highly specialist aerospace logistics industry.
They operate across the globe with around 200 employees in locations including UK, USA, Singapore, Europe and Australia. They typically process around 35 expense claims per month across the group.
Capture Expense’s automated receipt tracking system has revolutionised our approach to managing expenses. The seamless and efficient handling of a substantial number of receipts and documents has significantly reduced the administrative burden on our team.
– Group Financial Controller
The challenge
Manual receipt tracking: Managing a high volume of receipts and documents while dealing with the inefficiencies of manual submission and processing.
Complex VAT compliance: Navigating VAT compliance with the need for pre-built records, adaptability to international standards, and accommodation for specific partial recovery scenarios.
Open banking limitations: Managing direct connections with multiple banks in multiples counties using SFTP.
Multi-currency management: Dealing with the complexities of managing expenses in multiple currencies, requiring accurate exchange rate calculations and flexibility for users during overseas travel.
Mult-level approval: Managing a complex approval process for expense reports, with varying levels, based on users, cost centres, and claim values, leading to potential delays and lack of transparency.
Manual integrations: Integrating expense data seamlessly with existing systems, specifically Microsoft GP and Cargowise, without manual data entry and the risk of errors.
The solution
Smart OCR scanning: The implementation of AI-powered OCR ensures real-time processing, automatically creating claims or attaching receipts directly to credit card transactions, significantly reducing manual effort and improving efficiency.
Fully VAT compliant: Capture Expense provides pre-built VAT records within the software, encompassing full standard UK, EU, or specific rates.
Streamlined credit card expense process: Capture Expense leverages Open Banking for a secure and standardised real-time credit card transaction feed from HSBC. For countries without Open Banking, the provision of a credit card statement import feature, accepting CSV files, ensures seamless integration.
Multi-currency support: Capture Expense provides robust support for multi-currency functionality, offering access to over 150 different exchange rates. Users can easily raise expenses in their own currency or based on overseas travel, with the system automatically calculating the home value in real time using the correct exchange rate from the date of the claim.
Customisable approval system: Capture Expense offers a flexible multi-level approval system. Reports can have any number of approval stages, based on user or cost centre criteria, and the value of the claim can determine the appropriate approver and the number of stages required.
Seamless integrations: Capture Expense effectively integrates with over 50 back-office systems. The support for Microsoft GP and Cargowise includes an export service that generates specifically formatted CSV files.
The benefits
Experience a modern software design that prioritises ease of use, requiring minimal training.
Embrace a fully digital, paperless system with advanced receipt management.
Leverage advanced OCR technology to minimise manual entry, enhance automation, and elevate system intelligence.
Automatically enforce company policies and rules reducing instances of out-of-policy claims.
Gain access to extensive reporting capabilities and unlimited analytical depth through the use of tags.
Capture Expense provides robust spend and policy control, allowing the application of rules and limits to expense categories, individual claimants, or groups of claimants.
Accessible anywhere, anytime
The ability to access the system on both mobile and desktop ensures unparalleled flexibility, enhances their responsiveness, and overall ease of use.
Streamlined VAT calculation process
Capture Expense offers automatic VAT calculations with support for both domestic and EU rates. This feature ensures accurate and efficient handling of Value Added Tax.
speeding up expense processing for rapid reimbursement and greater efficiency.
A mobile-first approach
ensuring that users can access the system seamlessly from any location, at any time.
The client
As one of the UK’s leading providers of security systems to businesses, the AlertSystems group, comprises of AlertSystems, Alert Monitoring and Alert Data. The companies are all committed to providing excellent service and products, such as their latest CCTV development, SEiNG.cloud, to organisations seeking high-quality business security solutions.
Before implementing an expense management system, AlertSystems’ process was entirely manual, which meant they were spending countless hours and resource on collecting and filing paper receipts.
AlertSystems initially decided to trial another expense management provider; this however raised a number of issues which only Capture Expense had an answer for.
I am really impressed with the Capture Expense product and service. We had additional requirements which they were happy to scope and develop the platform to meet our needs. Their customer service is great and they always resolve any problems or queries that arise. Capture Expense truly puts their customers first and I couldn’t be happier with their service!
– Group IT Manager
The challenge
Their expense process was entirely paper-based, resulting in employees saving and mailing receipts.
They required a system that works across web browsers and devices, ensuring accessibility for all employees.
Over 60% of employees who claim expenses work remotely and required a mobile solution that ran alongside the desktop version.
Managing both out-of-pocket expenses and expenses incurred through corporate credit cards.
They required a solution that could seamlessly integrate with Sage 50.
The solution
Capture Expense streamlines the submission and approval of both card and cash expenses in one integrated system.
The platform offers identical functionality on both mobile and desktop, enabling access across various browsers and devices.
Designed for minimal training and ease of setup, Capture Expense ensures that users can quickly adapt to the new system.
The platform provides an automated transactions feed with their bank.
Capture Expense facilitated a seamless integration with Sage 50 through Zynk.
The benefits
100% Paperless: Capture Expense helped AlertSystems go fully paperless, eliminating the need for physical receipts and paperwork.
Advanced OCR: The system’s OCR technology reduces manual data entry by automatically extracting and categorising receipt information.
Multi-Stage Workflow Approval: Capture Expense’s workflow mirrors AlertSystems’ group structure, guaranteeing expenses are approved by the right personnel at each stage.
Capture Expense has significantly reduced the time it takes for employees to submit their expenses. Previously, it took six weeks, but now, most people submit expenses daily or weekly, leading to quicker reimbursement.
Mobile accessibility
Employees appreciate the ability to use Capture Expense on their phones. This eliminates the need to carry laptops for expense submission and allows for convenient on-the-go expense reporting.
Cost savings
Capture Expense’s streamlined process for expense submission, approval, and integration has reduced the administrative workload, leading to significant cost savings by optimising resource allocation and reducing the need for manual data entry and reconciliation.
Customer service
Capture Expense takes great pride in its customer service. With a team of dedicated professionals, they ensure that every customer’s needs are met promptly and effectively.
Effective Petty Cash Management in 2024: Strategies and Best Practices
What is petty cash?
Petty cash is a small amount of money kept on the company’s premises for minor expenses, there’s usually no more than a few hundred pounds – unless the company Christmas party is around the corner.
It seems simple enough, but actually petty cash is often prone to abuse, easy to lose track of, and susceptible to theft.
In modern times, many consider it outdated, with safer and equally convenient alternatives available for small purchases.
Don’t know where you stand? That’s where we come in, we’ve put together this handy blog to help you understand all the challenges, benefits, and best practices when it comes to efficient petty cash management.
The 3 biggest challenges with petty cash management
1. The petty cash custodian holds all the power
If your custodian lacks the required accountancy skills or experience, tracking issues may arise
For example, custodians use petty cash vouchers to record employee expenses, so if your custodian misreads or misplaces these records, cash balances may not align – leading to increased risks of errors or fraud
With a sole custodian handling all your reporting and spending, the lack of a second-level check could result in financial losses for your business.
2. Compliance with your expense policies
Due to the informal nature of petty cash, spending might becometoo casual. If you are not careful, money could be withdrawn without recording expenses or logging receipts. Without proper documentation, it’shard to ensure expenses comply withyour policies and achieveaccurate expense reconciliation.
3. Too much reliance on manual processes
Traditional petty cash management heavily depends on paperwork, requiring receipts and bills to support expenses. Manual processes, such as journal entries in general ledgers, are common but susceptible to errors and fraud.
What are the advantages and disadvantages of petty cash?
Advantages
Disadvantages
Convenience: Quick, simple, and an easy way to pay for small, unplanned expenses without the need for reimbursement or out-of-pocket payments.
Security risk: Cash is hard to secure and challenging to track, making it susceptible to fraud, theft, or misuse.
Immediately accessible: Handy for impromptu needs like tipping couriers or covering transport for employees working late.
Manual monitoring: Requires ongoing manual effort for maintaining, recording, and reconciling, which can be a burden, especially for small businesses.
Handling mundane expenses: Useful for frequent but mundane office expenses such as milk, stamps, or cleaning supplies.
Outdated concept: In an era of cashless transactions with credit cards, debit cards, and electronic payment services, petty cash is seen as an old-fashioned and outdated concept.
The top 6 petty cash management best practices in 2024
1. Establish a clearpetty cash policy
To manage petty cash effectively, start by creating a comprehensive, yet easy to follow policy. This policy should define the fund’s purpose, identify authorised users, set the maximum cash disbursement, and outline procedures for replenishing the fund. By having a policy in place, you can ensure consistency and accountability when handling petty cash.
2. Set a sensible float amount
To maintain good cash flow and avoid having too much unused cash, it’s vital to set the right float amount. This amount should be determined by looking at past expenses over a specific time. Analyse historical data to figure out the average needed, and update it regularly based on changes in business operations.
3. Implement a system of internal controls
To prevent unauthorised or unwanted access and mitigate the risk of fraud, it is essential to implement a system of internal controls. Some essential control measures include:
Segregation of duties: Have different people handle cash disbursements and record-keeping to prevent one person from having full control over petty cash.
Secure storage: Keep the petty cash fund in a locked and limited-access box or drawer to prevent theft or misuse by unauthorised individuals.
Perform regular audits: Perform surprise audits to check petty cash records, ensuring the actual cash matches the recorded balance. This helps identify discrepancies or fraud early on.
4. Maintainaccurate documentation
Maintain transparency and track petty cash transactions by ensuring accurate documentation. All disbursements should be supported by original receipts or vouchers. Implement a system where your employees provide a clear description of the purpose, date, and amount of the expense, attaching this documentation to the receipts for future reference.
5. Replenish the petty cash box
Top up the petty cash boxregularly to maintain its effectiveness. You should also establish a process for submitting reimbursement claims and ensure that all required supporting documents are provided.
6. Provide training and communication
Ensure compliance with petty cash policies by providing proper training and communication. Educate employees handling petty cash on accurate record-keeping, guideline adherence, and the consequences of non-compliance.
FAQs
Why is It called petty cash?
“Petty” comes from the French word “petit,” meaning small. In English, it means minor or insignificant. Petty cash is a small amount of money reserved for small purchases, not major expenses.
What is the difference between petty cash and cash?
Cash is money on hand, while petty cash is a predetermined amount set aside for small expenses (where checks or bank transfers may not be suitable)
What areexamples of petty cash?
Petty cash is usually kept in a drawer, lockbox, or large envelope. Typical expenses covered by petty cash include:
Office supplies (pens, erasers, staplers, etc.)
Catered meals
Postage
Parking fees
Why should youhave a petty cash box?
A petty cash box offers convenience as it provides quick access to cash for small, unplanned business expenses. It’s handy for regular payments and facilitates transactions with non-digital businesses, saving the hassle of frequent trips to the ATM.
What is a petty cash voucher?
A petty cash voucher is a small form for documenting payments from a petty cash fund. It’s called a petty cash receipt and is available for purchase at office supply stores.
Can I track petty cash in Excel?
Excel has a built-in format for petty cash management, suitable for small funds with few transactions. However, as your business grows, you may need alternative methods for handling petty cash due to increased volume and reconciliation needs.
Keep track of company spend with Capture Expense
Effortlessly track and report on all spend with our business expense tracker—giving you an instant detailed breakdown of spending by mileage, user, total expenditure, and more. Book a personalised demo to see it in action.
Optimising business travel: A guide to creating corporate travel policies
When it comes to corporate travel and managing travel expenses, a travel policy brings it all together. It not only influences travellers to opt for cost-effective choices but also functions as a crucial visibility tool for managers and the HR department. When properly implemented, it becomes a protective measure for your personnel.
What is a travel and expense policy?
A travel and expense policy (T&E policy) is a set of guidelines and rules established by an organisation to govern the procedures and limits associated with employee travel and related expenditures. This policy aims to ensure consistency, accountability, and compliance with the company’s financial and operational objectives.
It typically outlines:
How, where, and when to book.
Approved technology for travel management.
Preferred suppliers for air travel, land travel, and accommodations.
Approvals process for out-of-policy bookings.
Trip extensions and personal travel.
Business travel expenses that are/aren’t covered.
The reimbursement process.
Business travel insurance information.
Emergency procedures and contacts.
Your company’s travel and expense policy should mirror the organisation’s culture and values, offering support to your travellers and addressing their needs. It also plays a crucial role in safeguarding your company from unexpected circumstances. Serving as a central document, it steers your team through the entire process of undertaking business travel, from start to finish.
While you might hear a few grumbles and groans around the words “travel expenses” or “corporate policy,” don’t worry, your policy does not need to be rigid and inflexible.
If your travellers opt for independent booking, respect their autonomy. They can continue to self-book, with the added benefit of a more efficient tool provided by your company
Why are corporate travel policiesimportant?
A corporate travel policy needs to address some of the most complex and important issues related to business travel. Well-crafted policies offer clarity and solutions to common questions and scenarios for both employees and employers. The ongoing process of developing, reviewing, and revising these policies should take into account diverse perspectives and needs, along with data evaluation. Yourtravel and expense policy should remain adaptable to evolving travel patterns, employee requirements, and practical considerations.
A recent Deloitte survey asked organisations how they would rate their current procedures and processes concerning business travel. There were various responses from “no process” to “comprehensive approach”.The majority of organisationssaw themselves in the centre-ground with a third of respondents accepting that they had taken limited action and needed to do more in this area.
What happens if you don’t have a travel and expense policy?
To put it simply: what can go wrong, will probably go wrong.
At the end of the day, a travel and expenses policy aims to streamline expenses, save costs and eliminate fraud.
Failure to address these factors exposes you to:
Overspending due to hidden costs if travel expenses are not under constant supervision.
Late or incomplete expense reports may occur if employees are unaware or uncertain about specific guidelines.
An increase in fraudulent expense claims, including duplications, exaggerations, and misreporting of business expenses.
Without guidelines, fraudulent behaviour cannot be controlled or addressed.
Without a fixed way of recording and storing expense data, you’re left with no insights into spending trends and patterns.
8 key considerationsin your corporate travel policy
1. Involve key stakeholders
Your travel and expense policy will touch nearly every employee and department within your organisation.
Involve key stakeholders across the business and any departments which are frequent travellers to ensure that the policy reflects all perspectives and needs.
2. Track travel expenses for reporting and analysis
Accurately tracking your organisation’s travel expenses can help you understand what is and isn’t working in your corporate travel program. These data points offer leaders insights into the program’s effectiveness, guiding potential revisions to the policy based on what is or isn’t working.
Having the appropriate tools provide policy leaders with the necessary information to make important decisions. The company needs a standardised system for completing expenses to avoid data duplication and create a consistent reporting process for all employees.
With accurate expense reporting you’ll get a much better understanding of the ROI for business travel.
3. Consider employee satisfaction, placing emphasis on effective communication
Some business travellers might have strong feelings about travel policy changes, especially if it affects their usual travel routines.
For instance, some employees may prefer certain hotel chains or airline brands, and a shift to a “mandated” provider could lead to serious dissatisfaction
That’s why consistent communication is crucial regarding the creation, evaluation, and modification of your policy
It’s also important to keep yours clear and easily comprehensible, employing subheadings, bullet points, examples, and concise paragraphs to enhance readability.
4. Provide resources
A well-crafted policy goes beyond listing the do’s and don’ts. It can serve as a valuable resource for both employees and managers.
You should consider including the following resources:
Your travel policy has the potential to clarify uncertainties related to corporate travel. Ensure that it covers various areas that frequently raise concerns for both business travellers and administrators, such as:
Whether business travellers are required to utilise a corporate travel agency or website.
Expected turnaround times for reimbursements and expense reports.
Budgetary guidelines for airfare, hotel and ground transportation, including whether there are mandatory vendors.
Procedures for handling rejected travel expense submissions or requests.
6. Incorporate an understanding of duty of care
Employers are responsible for a duty of care, the legal obligation to research and develop a plan that reduces the risk for employees travelling on behalf of their employers
The travel policy should explain what duty of care is, and the employer’s commitment to its employees and how far that extends
Begin by discussing any necessary changes to the policy with travellers, who regularly complete high-risk business travel, and their managers. Examine global risk trends, discuss past experiences, and draft initial guidelines
Your policy needs a pre-travel process and a standardised risk assessment report, especially when travelling to high-risk areas. Incorporate travel alerts into the itinerary and ensure that the company has access to employee contact information and health records, if applicable
The policy needs to have multiple contingency plans detailed and ready to implement if needed. Be sure that employees have access to helpful technology if problems occur while travelling.
7. Include travel risk management considerations
Travel risk management involves anticipating, preventing, and responding to potential issues that may occur while employees are on the move. These risks can encompass a wide range, from weather-related problems and natural disasters to social unrest and terrorism.
Its objective is to recognise and prepare for probable risks, minimising the likelihood of these threats becoming a reality whenever possible.
In the event that a threat does arise, travel risk management will offer solutions to deal with it.
Travel risk management and duty of care are closely connected, often sharing common ground. Both play vital roles in ensuring the safety of employees.
8. Practice continuous improvement
To keep corporate travel policies relevant, you need to carefully check both the policy and the data that supports it.
Regularly reviewing the policy, with a focus on employee safety, costs, and compliance, ensures that the company maintains policies that contribute to the well-being of the organisation and its employees.
Is there anything missing from your travel policy?
If you think your travel policy is missing something, ask yourself the following questions:
Are there any restrictions on who travels domestically or internationally? Or guidelines around reasons for travel?
Are there any restrictions on when business travel is not permitted? Like during an auditing period or financial downturn?
How should travel arrangements be booked? Through your online booking tool or with a travel management company? How far in advance should domestic and international trips be booked?
Do you have preferred partners for air travel, accommodation, ground transport or travel insurance?
Who’s responsible for authorising travel expenses and business trips?
What’s the process for managing/submitting expenses?
How will you prevent or deal with non-compliance to the travel and expense policy?
What are the conditions if someone wants to extend their business trip to take personal leave?
Do your business travellers have a daily allowance for meals, snacks, and drinks? How much is it, what does it include – and what’s not covered?
What’s the procedure in cases of Acts of God or Force Majeure events? Does your team know who to call for assistance?
Who is responsible for updating and reviewing your policy, and how often?
How can you improve corporate travel policy compliance?
Let’s say you’ve done your research, assembled the necessary resources, and effectively communicated your travel and expense policy to employees. What should you do if you feel your employees aren’tactually following it?
Keep track of compliance issues
While it may seem challenging, it presents a valuable opportunity to enhance policy compliance and ensure your team aligns with guidelines. By pinpointing areas where employees face challenges, you can strategically tailor communications to assist them in staying compliant.
For instance, if you find that some team members frequently submit travel expenses that deviate from travel policy guidelines, such as exceeding meal allowances or including non-reimbursable expenses, proactive measures can be taken.
By tracking these patterns, you can notify travellers in advance when they are about to submit out-of-policy expenses and guide them to the relevant information
Establishing compliance targets for travellers provides a measurable metric for overall policy effectiveness. Without set goals, evaluating the value of your efforts becomes challenging.
Over time, these initiatives should reduce non-compliant spending by employees, enhancing the overall effectiveness of your travel and expense policy.
Ensure your travel andexpense policyis uptodate
If it’s been a while since you last reviewed your travel and expense policy, it’s no wonder your travellers aren’t complying.
Outdated travel policies are misleading, inaccurate, and nearly impossible not to violate. Laws and regulations change, UI on travel tech gets a makeover, company culture and values evolve – you get the picture. There’s a lot that can change over time.
To avoid confusion within your team, it’s advisable for businesses to review their travel policy at least annually to ensure its relevance.
Download your free corporate travel policy template
Crafting a comprehensive travel policy template for your company can seem overwhelming. But fear not, Capture Expense is here to assist you every step of the way.
An expense policy is like a rulebook for business expenditure. It provides explicit guidelines for your team on how to spend company money without causing confusion for the finance team. This framework outlines what business expenses can be reimbursed, what can’t, and the process for getting money back after spending it. In this blog, we outline everything you need to know about business expense policies and the steps you can take to build the perfect policy, tailored to your organisation.
What are 5 the biggest expense policy challenges businesses face?
1. Enforcing the policy
It’s one thing to create a policy, making sure it’s implemented company-wide is another story.
Finance teams often struggle with the time-consuming nature of tracking receipts and reconciling corporate credit card data.
2. Poor communication
It’s difficult to ensure that all employees, read and save a copy of the policy, especially if it’s extensive.
Generally speaking, it’s best to send ongoing reminders to your employees and ask line managers to redistribute a copy to their teams.
3. Unwillingness to move away from manual processes
Relying on manual practices, such as saving physical receipts and using paper spreadsheets, can overwhelm your finance team.
This is not only an outdated way of working, but more importantly, it can lead to inefficiencies and human errors.
4. Lack of visibility over company spend
Numerous finance teams encounter difficulties in managing and controlling expense spending, and this problem intensifies as organisations expand their headcount.
5. Downstream impacts on month-end close
Discrepancies, unaccounted receipts, or unapproved business expenses can cause delays, preventing your finance team from closing the books promptly.
What makes a successful expense policy?
You might think the key to a successful policy is length and over explanation. In actuality, an efficient policy should be short and to the point.
In essence, your policy should be:
Clear and easy to understand: Avoid unnecessary financial terminology and focus on establishing a standardised set of rules without numerous exceptions.
Well structured: Enhance readability by incorporating a solid structure. A recommended starting point involves creating a comprehensive overview, followed by outlining which expenses can and cannot be claimed back.
Concise and straightforward: Regularly review and update it to ensure alignment with the company’s size, culture, and compliance with fiscal laws and regulations in the relevant countries of operation.
Your easy to follow checklist when creating an expense policy
Creating an effective policy involves several key steps to ensure clarity and consistency within an organisation:
1. Collaborate with key stakeholders
“It takes a village” this predominately refers to raising a child, but it also applies to creating an efficient expense policy.
You’ll need support from the leadership team, the finance team, HR, marketing, and sales to understand company spend needs.
2.Categorise your business expenses
Well defined expense categories will help you streamline your accounting, taxes, and reporting.
These categories should cover all company expenses, from travel and accommodation to meals and entertainment.
3. Set pre-defined budgets for each category
A good way to establish spending limits for each category is by examining previous business expenses.
This entails analysing the average costs of travel and accommodation for the sales team, and adjusting budgets based on changes in organisational size.
4. Define the approval process Ensure that your employees are well-informed about the procedures for submitting their expenses and the individuals responsible for approval. These processes should be transparent and include guidelines for contesting a rejected expense.
5. Outline the reimbursement procedure
You need to outline the entire process for filing expense reports, specifying the reimbursement timeline.
This approach ensures clarity, prevents misunderstandings, and streamlines the overall reimbursement process, contributing to effective financial management.
6. Outline employee responsibilities and compliance expectations
A well-constructed policy will clarify what type of proof is expected when submitting a business expense (i.e., paper receipts, digital screenshots…).
It should also define the consequences of any policy violations. Disciplinary actions for noncompliance should be communicated during employee onboarding and included within the expense policy.
7. Regularly update your policy As businesses evolve, expanding their operations and workforce, expenses naturally increase. A dynamic and adaptable expense policy is essential to navigate the evolving landscape of employee spend as the organisation grows and prospers.
8. Streamline the entire process with tech Regardless of the size of your company, receipts get lost, and mistakes happen. That’s why many organisations turn to expense management software that seamlessly integrates with their payroll and accounting systems, ensuring a smooth and efficient reimbursement process.
A business expense refers to the costs incurred by a company in its day-to-day operations. These expenses, which cover a range of common costs related to the regular functioning of the company, are tracked for tax purposes.
Expense reimbursements for employees involve receiving repayment for costs incurred during work duties, commonly associated with travel, accommodation, subsistence, and various other expenditures.
Automating the expense management process enhances efficiency by saving time, minimising errors, providing real-time spending insights, and facilitating streamlined audit and compliance checks.
There are three primary categories for corporate expenses:
Fixed expenses: These are consistent costs that remain stable or only slightly fluctuate over time, such as car payments, WiFi bills, loan repayments, and rent.
Variable expenses: These costs vary from month to month and include items like supply costs, mileage, and utility bills.
Periodic expenses: Occasional or infrequent costs, like those paid every once in a while, make up periodic expenses, making them challenging to plan for.
Reimbursement requests are typically processed by submitting the relevant expense documentation, such as receipts or invoices, to the appropriate department within an organisation. The documentation is then reviewed, verified, and approved for reimbursement, after which the employee receives the funds owed for the incurred expenses. The specific process may vary among organisations, but it generally involves a systematic review to ensure accuracy and compliance with company policies.
Want to keep track of your company spend?
With our accurate expense tracker your management team enjoys a comprehensive data overview, enabling them to discern trends, monitorbusiness expenses, and maintain a firm grip on budget management and cash flow. Book a demo here, to see Capture Expense in action.
The Latest Trends in Expense Management Software for Big Enterprises
In the realm of large businesses, staying abreast of the latest trends and technologies is paramount, especially when it comes to expense analytics and approval processes.
The dynamic landscape of business operations demands constant adaptation to remain competitive and efficient. Embracing cutting-edge expense analytics tools not only enhances financial visibility but also empowers organisations to make informed decisions swiftly.
With the advent of sophisticated expense approval software, large businesses can streamline their workflows, ensuring a seamless and timely validation of expenditures. Embracing these technological advancements enables companies to optimise their expense management systems, resulting in improved accuracy, reduced processing times, and ultimately, enhanced financial health.
In a rapidly evolving business environment, the commitment to integrating the latest trends and technologies becomes a strategic imperative for large enterprises aiming to maintain a competitive edge.
What are the latest trends in expense management software?
Fully customised expense approvals
Expense approval software is a crucial tool in modern business operations designed to streamline and automate the process of validating and authorising expenditure within an organisation.
This software facilitates the efficient management of expenses by providing a centralised platform for employees to submit their expense reports, and for supervisors or designated approvers to review and approve them.
By leveraging advanced algorithms and predefined business rules, expense approval software helps ensure compliance with company policies and regulatory requirements. This technology not only expedites the approval workflow but also enhances transparency, accuracy, and accountability in financial transactions.
Moreover, it often integrates with other financial systems, creating a seamless and interconnected approach to expense management within large businesses.
In essence, expense approval software is a pivotal component in promoting efficiency, control, and adherence to financial protocols in corporate settings.
Real-time expense analytics
Expense analytics tools offer a multitude of advantages for growing businesses seeking to optimise their financial strategies and operations.
These tools provide a comprehensive and insightful analysis of expenditure patterns, enabling organisations to gain a deep understanding of their financial landscape.
By leveraging advanced expense analytics, businesses can identify cost-saving opportunities, detect anomalies, and make informed decisions to improve overall fiscal health.
Expense analytics tools empower companies to track and manage spending trends, highlighting areas where resources can be allocated more efficiently. Real-time visibility into financial data ensures proactive decision-making, allowing businesses to respond promptly to changing market conditions.
Additionally, these expense tools often come with customisable reporting features, providing stakeholders with clear and concise insights into expense categories, vendor performance, and budget adherence.
Ultimately, the benefits of expense analytics tools extend beyond cost reduction, fostering a strategic approach to financial management that is essential for sustainable growth and success.
Automated corporate card reconciliation
Corporate card reconciliation stands as a crucial process for large businesses, offering a spectrum of benefits that contribute to efficient financial management. This practice involves the meticulous comparison and adjustment of corporate credit card transactions with corresponding expense reports, ensuring accuracy and compliance.
One of the primary advantages is the enhanced visibility it provides into company expenditures, allowing for a detailed analysis of corporate card usage. This transparency not only aids in identifying potential errors or fraudulent activities but also facilitates a thorough understanding of spending patterns.
Corporate card reconciliation streamlines financial workflows, reducing the burden of manual data entry and minimising the likelihood of discrepancies. For large businesses with numerous transactions, this process ensures a more streamlined and error-free financial system, fostering accountability and adherence to budgetary constraints.
Additionally, accurate corporate card reconciliation supports timely reporting, enabling large organisations to make informed decisions based on up-to-date and precise financial information.
Overall, corporate card reconciliation serves as a cornerstone for maintaining fiscal integrity and efficiency within large enterprises.
Tax-compliant expense reports
Tax-compliant expense reports offer substantial benefits for large businesses, particularly when integrated with efficient expense report reminders.
Ensuring that expense reports adhere to tax regulations is vital for maintaining financial compliance and optimising tax-related processes. These reports provide a structured and detailed account of business expenditures, making it easier for organisations to identify eligible deductions and credits, ultimately leading to tax savings.
By incorporating automated expense report reminders, large businesses can enhance their tax compliance efforts by prompting employees to submit accurate and timely documentation. This proactive approach not only minimises the risk of overlooking deductible expenses but also streamlines the entire reporting process. Furthermore, tax-compliant expense reports contribute to a smoother audit trail, reducing the likelihood of compliance issues and facilitating a more seamless interaction with tax authorities.
In essence, the combination of tax-compliant reports and strategic reminders plays a pivotal role in fortifying the financial health and regulatory standing of large enterprises.
Automated expense approvals
Automated expense approvals emerge as a transformative solution for large businesses, revolutionising the traditional workflows associated with expense management. By heavily leveraging automated expense approvals, organisations can significantly enhance efficiency and accuracy in the approval process.
This technology expedites the validation of expenses by implementing predefined rules and workflows, reducing the reliance on manual intervention. Large businesses can benefit from streamlined operations, as automated systems enable faster processing times and eliminate bottlenecks in the approval chain.
Moreover, the use of automated expense approvals ensures consistency and compliance with company policies, reducing the likelihood of errors and discrepancies. This not only accelerates the entire expense approval lifecycle but also provides real-time visibility into spending patterns.
The result is a more agile and responsive financial system, empowering large enterprises to make informed decisions while maintaining a heightened level of control and accountability over their expenditures.
Keeping up with HMRC approved mileage rates
For large businesses tracking vehicle mileage, staying abreast of HMRC approved mileage rates is essential for a range of benefits. HMRC mileage rates represent the approved reimbursement amounts for business-related travel, and adhering to these rates ensures compliance with tax regulations.
By keeping up with the latest HMRC mileage rates, large businesses can accurately calculate and reimburse employees for their travel expenses, fostering transparency and fairness. This practice not only helps organisations remain tax-compliant but also prevents potential discrepancies that may arise during audits.
Additionally, by using the approved rates, businesses can simplify the reimbursement process, providing a standardised approach that reduces administrative burden. Consistent adherence to HMRC mileage rates also demonstrates financial responsibility, contributing to a positive reputation and trust among employees and stakeholders.
Ultimately, staying informed about and implementing HMRC approved mileage rates is a strategic practice that enhances financial accuracy, compliance, and overall operational efficiency for large enterprises.
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As businesses embark on the exciting journey of growth, effective expense management becomes crucial for sustainable success. Monitoring and optimising expenses can significantly impact the bottom line and pave the way for long-term financial health.
In this blog, we’ll explore essential expense management metrics tailored for the unique challenges faced by growing businesses.
What are expense management metrics and KPIs?
Expense management metrics and Key Performance Indicators (KPIs) serve as quantitative benchmarks to assess the effectiveness and efficiency of business expense management. These metrics fall into two primary categories: operational and strategic.
Operational metrics centre around the procedural aspects of expense management, evaluating factors like the speed, accuracy, and compliance of expense recording and approval processes.
On the other hand, strategic metrics hone in on the results of expense management, gauging factors such as total expenditure, savings, and investments across various segments of the business.
Why are expense management metrics and KPIs important?
Metrics and KPIs related to expense management play a crucial role in obtaining valuable insights into your financial performance and well-being.
They serve as tools to oversee and regulate spending patterns, detect and eradicate inefficiencies, fraud, and mistakes, optimise the allocation of budgets and resources, enhance decision-making and planning capabilities, boost profitability and growth prospects, and align expenses with strategic objectives.
How can growing businesses choose the right expense management metrics?
When it comes to selecting expense management metrics, a one-size-fits-all approach is not suitable. It is crucial to consider factors such as your industry, size, organisational structure, and strategy, along with specific challenges and opportunities.
In general, opt for metrics and KPIs that are pertinent, meaningful, and actionable for your business. Clearly define measurable targets and benchmarks for each metric and KPI. Achieving accuracy and effectiveness requires a balanced mix of operational and strategic metrics.
The top 7 metrics growing businesses should track when managing expenses
Budget variance
What it is: Budget variance measures the difference between planned and actual expenses.
Why it matters: Understanding where your expenses deviate from the budget helps in identifying areas for improvement and making informed decisions to keep spending in check.
Cost per unit or service
What it is: Calculating the cost per unit or service provides insight into the efficiency of your operations.
Why it matters: As your business grows, ensuring cost-effectiveness in production or service delivery is vital. This metric helps in optimising processes and maintaining profitability.
Employee expense ratio
What it is: This ratio compares total employee expenses to overall operating costs.
Why it matters: For growing businesses, managing labour costs is crucial. Monitoring the employee expense ratio aids in understanding the impact of staffing on the budget and making strategic workforce decisions.
Travel and entertainment costs
What it is: Tracking expenses related to business travel and entertainment.
Why it matters: As your business expands, so may your travel and entertainment expenses. Keeping a close eye on these costs helps in controlling discretionary spending and ensuring it aligns with business objectives.
Vendor and supplier performance
What it is: Evaluating the efficiency and cost-effectiveness of vendors and suppliers.
Why it matters: For growing businesses, maintaining strong relationships with vendors is crucial. Assessing their performance ensures that you’re getting value for money and helps in negotiating better terms as your business scales.
Cash flow forecasting
What it is: Projecting future cash inflows and outflows.
Why it matters: As your business grows, cash flow becomes more complex. Accurate forecasting allows for proactive decision-making, ensuring there’s enough liquidity to support expansion efforts.
Return on investment (ROI)
What it is: Calculating the return on investments made in various areas of the business.
Why it matters: Growing businesses often invest in marketing, technology, and infrastructure. Monitoring ROI helps in assessing the success of these investments and optimising future spending.
How to benchmark your expense management metrics and KPIs against competitors?
Benchmarking involves comparing your expense management metrics with those of competitors or industry peers, offering insights into your relative performance and highlighting strengths and weaknesses.
To benchmark, start by identifying key competitors and their corresponding metrics and KPIs. Collect reliable and comparable data from sources such as financial statements, reports, surveys, or industry associations.
Analyse the data, calculating gaps and differences between your metrics and those of competitors.
Interpret the results to gain insights, and finally, implement actions to address gaps and enhance overall performance.
How to improve your expense management metrics?
Enhancing your expense management metrics and KPIs is a continuous effort that demands consistent monitoring, evaluation, and adaptation.
Achieve this by automating and streamlining your expense management process through the use of software and tools.
Enforce transparent policies and procedures, educate employees on the significance of expense management, incentivise cost-conscious behaviours, and explore innovative approaches to expense control.
Employing these strategies will contribute to more effective goal achievement.
How can you use metrics to improve expense approval workflows
Businesses utilise metrics to enhance expense approval workflows by establishing a systematic and data-driven approach. Metrics provide a quantifiable basis for evaluating the efficiency of expense approval processes, identifying bottlenecks, and streamlining workflows.
By analysing metrics such as expense approval times, rejection rates, and overall process efficiency, businesses gain insights into areas requiring improvement.
This data-driven approach enables organisations to implement targeted strategies, refine approval policies, and deploy technologies that optimise the entire expense approval workflow.
Ultimately, leveraging metrics in this context leads to increased transparency, reduced processing times, and improved overall expense management within the business.
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Expense Management for Global Businesses:
Challenges vs. Efficiency
In the ever-evolving landscape of global business, efficient expense management has emerged as a pivotal factor in sustaining financial health and operational agility.
The amalgamation of automated expense approvals, budget management software, credit card reconciliation tools, digital expense claims, expense analytics, and meticulous expense approval processes has become the cornerstone for organisations operating on a global scale.
Striking the right balance between these components is essential for not only maintaining financial transparency but also ensuring streamlined workflows and compliance across diverse regions.
This article explores the profound significance of these interconnected elements, shedding light on how they collectively contribute to the efficiency and success of expense management in the context of today’s globalised business environment.
Expense management terms all global businesses mush know
Automated expense approvals: A process where expense requests are automatically reviewed, verified, and approved using software, reducing manual intervention and streamlining the approval workflow.
Budget management software: Software designed to plan, track, and manage financial budgets, providing tools for budget creation, monitoring, and analysis to ensure adherence to financial goals.
Credit card reconciliation software: Software that facilitates the automatic matching and reconciliation of credit card transactions with corresponding financial records, ensuring accurate and up-to-date financial reporting.
Digital expense claims: The electronic submission and processing of expense claims, allowing employees to submit their expenses digitally and organisations to manage and approve claims through online systems.
Expense analytics: Utilising data analysis tools to examine and interpret expense data, enabling organisations to gain insights into spending patterns, identify trends, and make informed financial decisions.
Expense approval: The process of reviewing and granting authorisation for submitted expenses, ensuring compliance with company policies and financial regulations before reimbursement or payment.
Expense analytics tools: Software applications or platforms that enable global organisations to analyse and interpret expense-related data, providing insights into spending patterns, cost optimisation opportunities, and overall financial performance.
Corporate card reconciliation: The process of aligning and verifying corporate credit card transactions with corresponding financial records to ensure accuracy, transparency, and compliance with organisational accounting practices.
Expense policy compliance: Adherence to established guidelines and rules governing the submission, approval, and reimbursement of expenses within an organisation, ensuring consistency and compliance with company policies and regulatory standards.
Integrated expense solutions: Comprehensive software or systems that consolidate various aspects of expense management, including submission, approval, reimbursement, and analytics, into a unified and streamlined solution for organisational efficiency.
11 key considerations for global businesses when choosing expense management software
When choosing expense management software for global businesses, several key considerations come into play:
Global compliance
Ensure the expense management software aligns meticulously with the diverse tax and regulatory frameworks of the countries in which your business operates.
Multi-currency support
The software should handle multiple currencies to facilitate expense reporting and approval in different regions without currency conversion issues.
Integration capabilities
Look for software that integrates seamlessly with other financial systems, credit card platforms, and enterprise resource planning (ERP) software for efficient data flow and reconciliation.
Mobile accessibility
A mobile-friendly interface is crucial for on-the-go expense reporting and approvals, especially in a global business where employees may be working from various locations.
Automation and workflow
Evaluate the level of automation the software provides for expense approvals, ensuring that workflows can be customised to meet the specific needs of your global business.
Expense analytics and reporting
Robust analytics and reporting features are essential for gaining insights into spending patterns, identifying cost-saving opportunities, and making informed decisions.
Security and compliance
Prioritise expense allocation software that offers strong security measures to protect sensitive financial data, and ensures compliance with data protection regulations across different jurisdictions.
User-friendly interface
A user-friendly interface is important to encourage widespread adoption across diverse user groups, irrespective of their location or level of technical expertise.
Scalability
Consider the scalability of the software to accommodate the growing needs of a global business, ensuring that it can handle an increasing volume of expense transactions and users.
Vendor support and training
Assess the level of support and training provided by the software vendor, taking into account the need for assistance across different time zones and languages.
Credit card reconciliation
If credit card reconciliation is a crucial aspect of your expense management, ensure that the software seamlessly integrates with credit card platforms and streamlines the reconciliation process.
By considering these factors, global businesses can choose expense management software that aligns with their specific requirements and effectively addresses the challenges of managing expenses across diverse locations.
The imperative for global enterprises to adopt automated expense approvals
The imperative for enterprises to embrace automated expense approvals is paramount.
The advent of automated expense approvals transcends traditional manual processes, offering a transformative approach to managing financial workflows. This technological evolution not only accelerates approval timelines but also minimises errors, enhances accuracy, and ensures compliance with company policies and regulatory frameworks.
By leveraging automated expense approvals, global enterprises can foster operational agility, gain real-time insights into expenditure patterns, and establish a robust foundation for financial governance.
This strategic integration not only optimises efficiency but also empowers large organisations to navigate the complexities of modern expense management with precision and ease.
The expense management challenges global businesses face in 2024
In the intricate terrain of global business, expense management encounters a myriad of challenges that necessitate strategic solutions.
Automated expense approvals, though efficient, demand careful integration with diverse workflows, considering the multifaceted nature of global operations.
Budget management software becomes crucial as businesses navigate varying fiscal landscapes, requiring tools that offer flexibility and adaptability across regions and currencies.
The intricacies of credit card reconciliation software pose challenges in maintaining accurate and real-time financial records, especially when transactions span different countries and currencies.
Digital expense claims while streamlining processes bring forth the challenge of ensuring seamless adoption across a geographically dispersed workforce.
Achieving uniformity in expense approval processes becomes challenging, given the diverse regulatory frameworks in different countries.
The implementation of expense analytics tools becomes paramount for businesses seeking actionable insights into spending patterns and compliance issues, demanding robust solutions to meet the dynamic demands of the global expense management landscape.
Why large businesses must implement expense management software to succeed in 2024
The strategic integration of automated expense approvals, budget management software, credit card reconciliation tools, digital expense claims, expense analytics, and meticulous approval processes is paramount for financial success and operational efficiency.
This interconnected suite of technologies addresses the challenges posed by diverse fiscal landscapes, regulatory frameworks, and geographically dispersed workforces.
As we conclude this exploration of expense management for global businesses, it is evident that leveraging these tools not only streamlines workflows but also enhances transparency, compliance, and decision-making.
By embracing these innovative solutions, growing organisations can navigate the complexities of modern expense management, fostering a culture of financial prudence and adaptability in the globalised business environment.
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Expense Management Integration: How to Seamlessly Sync with Accounting Systems
In today’s fast-paced business environment, efficient expense management is crucial for the success of any organisation. One key aspect of streamlining this process is integrating expense management systems with accounting software. This integration not only saves time and reduces manual errors but also provides a comprehensive overview of financial data.
In this blog post, we will explore the benefits of expense management integration and guide you through the steps to seamlessly sync with accounting systems.
The importance of expense management integration
Time efficiency
Manual data entry can be a time-consuming task prone to errors. Integration automates the process, allowing employees to focus on more strategic activities.
Accuracy in financial reporting
Integration ensures that financial data is consistently accurate across both expense management and accounting platforms, reducing discrepancies and enhancing overall reporting accuracy.
Real-time visibility
With integrated systems, stakeholders gain real-time visibility into expense data. This enables faster decision-making and a more proactive approach to financial management.
Policy compliance
Integration facilitates adherence to company expense policies by automating approval workflows and flagging potential policy violations.
Steps to seamless integration
Choose compatible software
Select expense management and accounting software that are compatible and offer seamless integration capabilities.
Data mapping
Ensure that data fields in your expense management system align with those in your accounting software. This step is critical for accurate data transfer.
API integration
Utilise Application Programming Interface (API) to establish a secure and efficient connection between the expense management and accounting systems.
Test and validate
Before fully implementing the integration, conduct thorough testing to identify and resolve any potential issues. Validate data accuracy and system compatibility.
Employee training
Provide comprehensive training to employees on the integrated system. This ensures that they understand the new processes and can navigate the system effectively.
Monitor and update
Regularly monitor the integration performance and update the systems as needed. Stay informed about software updates and new features that could further enhance integration.
Seamlessly syncing expense management with accounting systems is a strategic move for businesses looking to enhance efficiency and accuracy in financial processes. By following these steps, organisations can unlock the full potential of integration, leading to better financial management and improved overall performance.
Effortless ERP Integration with Capture Expense: Revolutionise Your Workflow
In the fast-paced landscape of modern business, efficiency is key, and integration is the driving force behind seamless workflows. Capture Expense takes the lead in this era of automation, offering a solution that goes beyond just streamlining; it revolutionises your entire workflow. Let’s explore how Capture Expense is the perfect answer to seamlessly syncing with your accounting systems.
A gateway to seamless integration
Versatility in integration
Capture Expense doesn’t just integrate; it excels at it. With compatibility across more than 50 different back-office systems and robust support for many others, it ensures that your integration needs are not just met but exceeded.
Empowering teams with API integration
Harness the power of a documented RESTful service through API integration. This not only empowers your internal teams but also provides vendors with the tools to create effortless, real-time integrations. It’s about giving everyone involved the ability to synchronise data seamlessly.
No more manual input
One of the standout features of Capture Expense is its ability to eliminate manual data transfers. Say goodbye to the tedious task of inputting data across systems. This not only reduces errors but also frees up valuable time, allowing your team to focus on more strategic activities.
Instant implementation for peace of mind
Capture Expense understands the urgency of accurate record-keeping. With its automated pre-accounting setup, the implementation is not just seamless; it’s instant. This ensures that your reports and transactions are recorded with precision, providing you with the peace of mind that comes with accurate financial data.
Why Capture Expense stands out
In the realm of expense report integrations and integrated expense solutions, Capture Expense emerges as the ideal solution for several reasons:
Comprehensive integration: Its compatibility with a wide range of systems ensures that it adapts to your unique ecosystem effortlessly.
User empowerment: The API integration empowers both your internal teams and external vendors, fostering collaboration and efficiency.
Error reduction: By eliminating manual data input, Capture Expense significantly reduces the chances of errors, contributing to more reliable financial data.
Speedy implementation: Instant implementation means you can start reaping the benefits of seamless integration without unnecessary delays.
Capture Expense is not just a tool for integration; it’s a game-changer for your workflow. Propel into an era of automation with confidence, knowing that your expense management seamlessly syncs with your accounting systems, thanks to the unparalleled capabilities of Capture Expense.
Ready to Revolutionise Your Business?
Unlock the power of expense approval workflows, streamline your expense policy compliance, and experience firsthand how our expense analytics tools can simplify your expense audit. Don’t miss out on this opportunity to shape your future.
