Keeping track of business spending is crucial, so companies need to have mobile expense management that allows employees to carefully monitor costs during a project or trip.
Imagine an employee returning from a business trip, burdened with a pocket full of crumpled receipts, trying to recall each expense while filling out a cumbersome spreadsheet. Now, contrast that with an employee who, as they go, snaps photos of receipts, logs each expense in real-time via an app, and submits their report with just a few taps. The app even uses OCR (Optical Character Recognition) technology to extract the amount, date, and vendor from the receipt, automatically filling in the required fields. The difference is night and day—this is the power of mobile expense management.
With the above in mind, many companies still rely on desktop or even paper-based expense reporting systems. In addition to a higher chance of error, these approaches to expense management also require a huge amount of effort from your team.
In this article, we will explain what a mobile expense management solution is and how it can benefit your company. We’ll also share a few steps to help you find the best mobile expense management solution for your business.
What is Mobile Expense Management?
Mobile expense management can simplify the reporting process and allow employees to better utilize the tools they have available.
Essentially, mobile expense management involves using apps that enable you to track, monitor, and update your company’s expenses with ease. These apps are designed to help employees submit accurate, real-time information from anywhere, making the entire process more efficient.
These tools often feature capabilities such as receipt scanning, which allows employees to take pictures and upload receipts on the go, in addition to GPS location tracking for mileage and travel expenses, automatic calculation of commute mileage, retrieval of meal per diem rates based on location, and integration with major payment systems. This comprehensive approach ensures that all expenses are captured quickly and accurately, minimizing the risk of errors and saving valuable time for everyone involved.
Top 5 Tips for Choosing the Best Mobile Expense Management Tool to Meet Your Needs
With dozens of expense management apps available, it’s essential to choose a system that not only meets your current needs but can also support your business as it grows, so you won’t have to switch providers down the line. While a mobile app is crucial for simplifying the reporting process, it’s just one of many important features you should consider.
Here are a few tips to help you choose the best expense management tool that fits your requirements.
1. Figure Out What Features You Need Most
One common mistake companies make is selecting an expense tracking tool without fully understanding what their team members actually need. To avoid this, start by conducting thorough research, including interviews with your team, to identify the features that are most critical for improving your expense tracking process.
For example, if your company is a government subcontractor, having features like Per Diem GSA Rates validation and tracking for allowable and unallowable expenses is essential for accurately billing travel expenses to government-related projects. Another crucial feature might be the ability to automatically send copies of expense receipts with invoices to your customers, ensuring timely payment.
2. Assess Compatibility
Next, it’s crucial to find a platform that can seamlessly integrate with your backend systems (Such as Sage Intacct, NetSuite, Microsoft Dynamics 365, ADP, APS, Salesforce, etc) , such as your General Ledger, Accounts Payables, and Billing, while aligning with your specific system requirements. As you evaluate expense reporting systems, be sure to assess their level of support, the types of integrations they offer, and the flexibility of the platform in meeting your unique needs.
For instance, if your General Ledger account numbers for Airfare vary depending on the project type—such as 092001 for Direct Projects and 082001 for Overhead Projects—you’ll need a system that can be configured to use a single Airfare expense type, with the Account Number automatically mapped based on the project type the expense is charged to. It’s important to ensure that your expense reporting system is not configured to match your General Ledger accounts directly, as your users are not accountants. Instead, the system should be designed for ease of use by end users, with a backend that automatically maps expenses to the correct General Ledger accounts.
3. Ensure that Security and Compliance Requirements Are Met
Security and compliance play a role in any business software and mobile expense tracking is no exception.
It’s essential to identify the specific security protocols and compliance requirements that apply to your business, such as SOC1 Type II, SOC 2 Type II, PCI Compliance, DCAA, HIPAA, and others. Once these requirements are clear, ensure that the provider you choose adheres to these standards to safeguard your business against potential risks. Remember that these requirements can vary depending on your industry and location, so it’s crucial to select an expense tracking app that aligns perfectly with your specific needs.
4. Set a Budget
When evaluating an expense management solution, it’s crucial to consider not only the upfront costs but also the long-term expenses such as maintenance, upgrades, and training.
As you assess different products, make sure you understand the type of support and training that will be provided. Additionally, inquire whether the vendor includes a sandbox environment at no extra cost, both during the initial implementation and as you continue to use the system.
Most expense management vendors offer an initial implementation package that includes customization, training, and rollout support. But, what happens after you’ve been using the system for some time? Will you retain access to a sandbox environment without additional charges? Will you incur costs for ongoing support or system upgrades?
To estimate the return on investment (ROI), factor in how the software will enhance productivity or reduce costs over time. Understanding these long-term costs and benefits will help you make a more informed decision and ensure that the solution remains viable and cost-effective in the long run.
5. Evaluate the User Experience
When selecting an expense management system, ease of use is crucial. The platform should be intuitive and straightforward for employees, minimizing the need for extensive training.
It’s also important to assess how flexible the system is regarding configuration versus what is considered customization/configuration. Review your company’s Travel Policies and Approval Workflow requirements to ensure the system you choose can meet these needs.
If customization is necessary, determine whether the expense management system can be tailored to your specific business needs without requiring significant changes or additional development. Additionally, consider how updates or new versions of the software might impact any customizations—will you need to reapply changes with each upgrade, or does the system offer a seamless transition?
In Summary
Choosing the best mobile expense management tool for your business is a critical decision that requires careful consideration of various factors. With so many options available, it's essential to select a system that not only meets your immediate needs but also has the flexibility to grow with your business.
Start by identifying the features that are most important for your team, ensuring the tool you choose aligns with your specific industry requirements. Compatibility with your existing systems is key, so assess how well the platform integrates with your backend systems, and ensure it provides the necessary support and flexibility.
Security and compliance are non-negotiable, so be diligent in verifying that the solution adheres to the required standards for your industry. Budgeting for both initial and long-term costs is equally important—understanding the full scope of expenses, including ongoing support and upgrades, will help you evaluate the true return on investment.
Finally, prioritize the user experience. The tool should be easy for employees to use, with the ability to customize and configure the system to meet your unique needs without significant hassle. By following these top five tips, you can make an informed choice that will streamline your expense management process and support your business’s growth over the long term.
Adopting Advanced Mobile Expense Management Solutions
Mobile expense management can simplify the reporting process and allow employees to better utilize the tools they have available. But, not all platforms are created equal, so you need to adopt an advanced mobile expense management tool that has powerful and functional features.
DATABASICS has a dedicated mobile app specifically designed to boost efficiency and practicality. Learn more about our mobile expense tracking system today.
FAQs
Does DATABASICS do mobile expense management?
DATABASICS is a comprehensive expense and time-tracking solution that includes a mobile app. Through the mobile app, you can record your work hours as well as your expenses in one single place, even if working on various tasks or fulfilling several responsibilities. In short, the app’s expense tracking can log mileage, time spent on tasks, and uploaded receipts.
What is the best software for tracking expenses?
There are many different mobile expense tracking solutions out there, but each one has a unique list of features and benefits. As such, there is no exact formula to find the best software for tracking expenses. Instead, you need to understand your requirements and find a provider that understands your requirements and offers a solution that addresses as many of your needs as possible.
What is an expense management system?
Simply put, an expense management system is a piece of software that allows your team to upload, monitor, and report business expenses. Whether it’s for a company trip or for daily operations, expense management software can help you stay organized and empower your team to fulfill its responsibilities with the appropriate resources. That said, it’s important that you track and monitor your team’s expenses to learn from the patterns and ensure that none of these funds are used for personal purposes. Compliance features that validate submissions against company policy or governmental rules are essential for automating what can be an arduous process for managers.
