Expense Management Workflow
A workflow is a step-by-step process that explains how expenditure reports that have been submitted by employees will be received, reviewed, and reimbursed. Workflows are typically used in the context of expense management. It is also possible to refer to this workflow as an expense management workflow. The process for cost management provides a complete picture of the entire path that employee expenses traverse, which, in a nutshell, sums up what the workflow does.
A technique that is manual or otherwise conventional may be appropriate for the management of expenses in a company that is on the smaller side and has a restricted number of workers who are required to travel for business purposes. It is absolutely necessary for large companies, especially those in which the majority of the workforce is required to travel, to have a cost approval procedure that is well defined and in place. This will assist in reducing the number of errors that occur, as well as reducing the amount of time that is wasted and increasing overall productivity.
Creation of Expense Management Workflow Process
1.Creating and submitting expenditure reports
In organizations with manual expense management methods, the employee compiles all bills, receipts, credit card statements, and other expense proofs and presents them with the expense report for reimbursement.
2. Submitted for approval
The expense reports are subsequently submitted for approval to the department head or manager. In the conventional way, this is typically accomplished manually or via email.
3.Compliance review
The finance department then reviews each employee's expense report to ensure compliance with the company's travel and cost standards. If you have not automated your company's cost management system, your accounting team must manually review every expense report and check for compliance. For organizations with an expense management system, however, the system immediately identifies non-compliant expenses and alerts the finance department.
4. Employee is reimbursed
The reimbursements of expense reports that conform with the company's T&E policies are then approved. In contrast, non-compliant expenses are returned for adjustment or rejected.
Benefits of Automated Expense Management Process
Using cost management software to automate the spend management process in your firm can make expense reporting and reimbursement more effective and error-free. Using the mobile app, your staff can now report expenditures on the go, anywhere and at any time.
In addition, certain cost management systems enable you to tailor the workflow and expense approval procedure to your specific requirements. This results in more policy compliance and fewer reimbursement mistakes.
