Why businesses should turn to expense management software during these dark times

It’s never a good idea to spend more than you earn. That’s the way to ruin and misery. So why do so many firms not rely on expense management software to pay close attention to the amount they commit to expenses?

The trouble is that for so many SMEs, ‘expenses’ is a catch-all covering a large number of relatively small, or even tiny, transactions; each of them on its own close to insignificant.

Just as one ant on a kitchen work surface is little more than a minor irritation, it is nevertheless a reminder that there are thousands of others out of sight somewhere, and that their cumulative effect is far from trivial.

And in that sense, ants are like expenses. The accumulated value of expenses covered as a single entry on a balance sheet masks details of the individual spend, just as the mass of moving ants in a nest makes it impossible to concentrate on an individual.

That one accumulated balance sheet entry is no indication of where the money has been spent, on what, when, and more importantly, why. By the time it’s got to that stage, it will have become virtually impossible – or at least very expensive – to isolate the details.

How to analyse expenses on the fly

At all times, it’s better to record the detail as the spend is made – and that’s the ability afforded by ExpenseOnDemand. It’s important to remember that the best expense management solution is about much more than about paying people back for out of pocket expenses. It should also integrate fully with all of the finance management operations in your business, and give you feedback about the way money is spent. It’s only in this way that you will fully understand what you’re spending, and, armed with that knowledge, to understand if the spend is adding value to the business.

And there is the heart of the matter. To succeed in business, it’s vital to know what you’re spending, and if the spend is adding value to the bottom line, or if you’re just burning fivers – and that’s when things are ‘normal’. In these trying times, it’s even more important.

With ability to record expenses and set them against the correct cost centre, department, or project delivered as fast as it takes to write it, ExpenseOnDemand puts knowledge at the fingertips of the business, supporting the ability to make effective business decisions based on real information gathered in real time, rather ‘finger in the wind’ decisions based on beliefs and assumptions.

Why you should turn to ExpenseOnDemand

We hope these few words have persuaded you of the value of expense management software in general. Now consider that ExpenseOnDemand is used in 96 countries, and has been in the business for almost 20 years. So many people over such a long time must be getting something back for the investment they make in our expense management app. It’s highly likely that the money you save with our software will amount to more than you spend with us. How will you ever know without using it? Well, to be honest, you won’t. But we promise we’ve thought of all the things we think you need to make your expense management slick and effective. And as your business claws its way back to normality, isn’t that the kind of support you need?

Picture: Andrey Pavlov | Dreamstime