For any organization, management of expenses and reimbursements are onerous duties. Both these areas have always been a big concern for companies. A reliable expense management software in India gives you control over employee expense management and reimbursement. It simplifies the process of expense management by automating some of the anticipated tasks. Such tools can take care of the whole expense management process that is from expense recording to reimbursement claims processing, and report generation. Companies can gain control and visibility over their finances with such tools. Are you planning to upgrade to such tools to handle expense management and reimbursements? Before proceeding, it is necessary to know what the terms expense management and reimbursements mean. It is crucial to understand these terms as they can help you to identify the right tools for optimizing the processes.
What do expense management and expense reimbursement mean?
Expense management is the process used by companies to process, reimburse and audit their spending. Expenses usually include travel and entertainment expenses of employees. The key elements of the process are how a company makes payments on its items and how it monitors them.
Expense reimbursement is a method where companies pay back employees who have spent money from their pockets on business-related expenses. Business travel is the most common reimbursement. Companies can also reimburse employees for healthcare, entertainment, education, and other expenses that they transact on behalf of the company. The most common reimbursement types include travel, mileage, business expenses, and healthcare.
Simplified Expense Management with Sumopayroll
Expense management and reimbursements are crucial processes in an organization. But managing these processes is a daunting affair, especially if you do them manually. It is quite difficult for any business to handle expenses, reimbursements, and approvals without any automated tools. Manual expense management is cumbersome, time-consuming, and error-prone. If the expense management process is not optimized, it can directly or indirectly have negative impacts on the business. There are numerous benefits to automating the expense management process.
For businesses, automation is easy and efficient to implement at every stage in the process. It saves time and energy, reduces cost, brings transparency, and optimizes resources. So companies can focus more on elements like scalability and profits, without worrying about the problems that occur in manual expense management. Both employees and employers can benefit from automation. All information on expenses is centrally located so, it is easy to view, update and accept claims. By connecting employees’ bank accounts, companies can efficiently perform direct reimbursements. This gives companies comprehensive visibility into crucial details, including the recipient of expenses, the disbursed amounts, and the origin of payments. The integration of expense management with payroll is an additional benefit for businesses.
How does Sumopayroll simplify expense management and reimbursements?
Sumopayroll comes with features that make various processes of expense management easy to manage from any place. Users have to just log in to the software from Internet-enabled devices to manage expenses, expense approvals, and expense reimbursements. The software is equipped with features that allow users to do the below expense management processes:
Add expenses in two different ways.
Users can add individual expense details by utilizing the My Expenses feature. Upon filling in information such as expense type, expense incurred date, amount, and description, users must save the details for submission.
The submitted expense status along with the attached documents will be visible to users and when the expense gets approval from the approver, its status is changed to approved. Another way to add expenses is by using Add Expenses feature. This feature is useful when the user wants to add expense details by selecting the employee name. The submitted expense details of employees can be approved or saved as a draft. In the same way, you can add expenses for other employees by repeating the same steps.
Effective reimbursements with Sumopayroll
Check all the available expense types and add new expense types. Users can create new expense types, edit them, or make them inactive. They can add a new expense policy by submitting the policy name, description, etc. It is possible to even edit the policy details or change the status of active policy to inactive at any time and vice-versa. By selecting the available expense policy name, you can view, edit and assign the expense types to the policy. After that, you can select the active employees and assign them to the policy. The software allows you to remove the expense type from the policy. If the status of expense type is scheduled, drafted, submitted, or rejected, it cannot be removed. You can even change or unassign an employee from the expense policy.
Schedule payment for approved expenses by choosing an appropriate reimbursement method. Users can select manual or payroll reimbursement methods to make the payment. In the manual payment method, they can make payment through a cheque, cash, or bank deposit. For payroll payment, users must choose the pay period to which they will add the expense amount. Once the system processes the payroll for that pay period, it disburses the expense payment to the employees.
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