The Key Benefits of Expense Management Software Explained

Written by
Marissa Saini
Last Modified on
March 28, 2024

It is only natural for traditional businesses that have always managed their expenses manually to have their reservations about the cloud. Is it safe and secure? Is it difficult to use? What if I lose all of my data? How much will it cost me each year? 

While all of these doubts are completely valid, there’s no reason why you shouldn’t give expense management software a shot, especially in this digital age we’re in. If most startups and businesses are doing it, there must be a logical reason behind it. 

What is cloud-based software? 

Cloud-based solutions are applications, on-demand services, or other resources that can be accessed simply with an internet connection. The ‘cloud’ essentially refers to servers that are accessed over the internet along with databases and software that operate on those servers. 

Previously, traditional software or IT infrastructure dominated as the only available option for businesses. This required users to have various pieces of hardware, sufficient data storage, and other additional upgrades in order to install and deploy the software itself. Today, cloud-based solutions can be accessed through the cloud, which acts as a virtual hosting platform. 

With the availability and seamless access to cloud-based software, this pay-per-use model is proving to become the ideal solution for business owners to achieve optimal performance and results in multiple facets of your business. 

How cloud-based expense management software can benefit your startup 

One of the most common ways cloud solutions are used in a business is through expense management. Here are some of the benefits of using expense management software and the ways it can take your business to the next level.

  • Increases operational efficiency
  • Greater accuracy and fewer errors 
  • Improves visibility and transparency 
  • An additional layer of security  
  • Entirely paperless process 

1. Increases operational efficiency

If there’s an opportunity to enhance workplace efficiency and productivity, startup founders should grab it at any given chance. With reduced hardware cost and processing time, employees can rely on the wonders of automation, save valuable time, and use that to focus on tasks of higher priority and value. 

Aside from its cost-saving benefits, seamless collaboration is also in the cards. By working within the software application, relevant parties can receive notifications and real-time updates on key information that directly concerns them; just like when a pending expense requires approval. 

Always search for areas where you can streamline your expense processes for your business and employees. 

2. Greater accuracy and fewer errors

Some of the most common corporate expense management mistakes occur due to human error. Adopting a paper-based expense system can significantly reduce the number of mistakes made compared to manual data entry. Especially when it comes to tax season, ensuring minimal mistakes are crucial as errors in tax returns can result in penalties from IRAS. being reflected on the final report. 

Other expense-related functions such as invoice management and receipt capture can be performed seamlessly, allowing the system to secure precise information for accurate reporting.

3. Improves visibility and transparency

A decentralised system for company expenditure allows for enhanced expense visibility across teams, especially for finance professionals. This enables finance teams to take full control of expense reports, eliminating the need for troublesome approval processes.

A clear outline of your expenditure also helps companies identify cost-saving opportunities and untapped areas for financial growth. 

For startup founders who are wary about granting employees full disclosure and access to their business funds, most cloud-based software allows team members to have an overview of the company expenditure without having direct access to these funds. Admin members such as founders and managerial employees can control the access level and only grant permission to select members of the company. 

4. An additional layer of security

Despite all the myths surrounding software security, making the switch to expense management software secures your financial data far more effectively than physical spreadsheets can. Instead of storing your records in countless folders, such cloud-based solutions allow companies to keep data secure in a centralised database, which can be accessed remotely. 

With the right platforms and tools, employees can also digitally back up their reports without the need to do it manually. 

What’s more, the move to digital workflows can prevent several employee actions that may lead to security breaches including lost or stolen paperwork, hardware theft, or even inadequate paperwork disposal. Ensure that you make full use of the role-based conditional access features from expense management software to refine permissions and access to sensitive data. 

5. Entirely paperless process

Going paperless results in simplified expense reporting. Finance teams no longer have to worry about sifting through files upon files of financial documents and receipts. With a stable internet connection and just a click of a button, you can easily access important records at any time, anywhere. 

On top of that, paperless expense reporting can also reduce your carbon footprint and reduce the number of paper products produced. Contributing to a greener society and managing your expenses efficiently — what’s not to love? 

The two-in-one expense solution for your business 

In today’s digitally connected business environment, it looks like software solutions are here to stay. Whether you are new in the startup industry or have been in business for a while now, it’s time to embrace this digital shift and look for better ways to manage your business expenses. 

If you’re looking for a business account for your startup with an in-app expense management feature, the Aspire Business Account is right up your alley. Issue unlimited virtual cards to your team members, track your expenses easily and even earn 1% cashback on all qualified digital marketing and SaaS spend. All of this and more when you sign up for a free account today! 

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About the author
Marissa Saini
is a seasoned writer and an avid trendspotter across business finance, personal finance, travel and lifestyle industries. With writing history at SingSaver, INK, and ohmyhome, Marissa leverages her broad range of experiences to simplify finance and make readers financially savvy.
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