Expense management systems are used to process, pay, and audit employee-initiated expenses.
Expense management is obviously essential to any organization, but it can be tough for small startups, especially if they lack the resources to hire a team dedicated to this task. That’s where expense management software comes in.
Automated expense management systems simplify this work for your company, making processing times faster, improving compliance, and reducing data-entry errors.
These software systems range from legacy systems that control the process of charging expenses and handling reimbursements across multiple platforms, to vertically integrated systems that combine each step of the expense management process into one platform.
Here are some answers to common questions you might have before deciding to make this switch.
Credit card companies conveniently track transactions, but expense management systems are a better option for a few reasons. For one, expense management software tools track all expenses—not just credit card transactions.
Also, expense management software can integrate with multiple payment methods and provide both real-time expense tracking and automated reporting.
Lastly, granular controls can provide or limit access to specific features and data depending on the user. Credit card companies don’t usually offer these useful perks; that’s what makes the comprehensive solution of expense management software so superior.
Your organization's specific needs will help you decide. This might include things like an approval system to automate your processes, the ability to itemize expenses and set expense types, or real-time automations that sync with accounting software. It’s also important to consider the ROI of the platform, as a standalone solution may be cheaper at first, but an all-in-one solution will likely be more cost-effective in the long run.
The level of necessary involvement, per person costs, and integrations vary across platforms. Below are some popular options:
Brex is a card and Expense Management Platform in one with features specifically designed for small businesses. Brex allows you to set up expense policies, control employee spending, and automate expense tracking and reporting. What’s more, Brex provides higher credit limits than a traditional credit card company, and offers rewards for common small business expenses like software subscriptions, travel, and dining. Brex's platform also offers real-time visibility into expenses, so small businesses can instantly fix issues.
What makes Brex unique:
Divvy is another card and Expense Management platform that’s great for small businesses. Divvy tracks expenses, sets budgets, and manages employee spending with ease. Divvy, like Brex, also offers real-time expense tracking, making any issues immediately visible. Employees can submit expenses and receipts right from their phones with the simple Divvy app. Also, businesses can set spending limits and restrictions for either individual employees or whole teams so everyone stays within budget.
What makes Divvy unique:
Airbase offers a more comprehensive suite of expense management tools, including real-time tracking, granular controls, and automated reporting. With Airbase, small businesses can manage their expenses, set budgets, and control employee spending, all within an intuitive interface. Airbase, like Brex and Divvy, also integrates with multiple payment methods to track all expenses, and syncs automatically with accounting software. In addition, like Brex, Airbase offers higher credit limits and rewards for small business expenses.
What makes Airbase unique:
Again, automated Expense Management Systems are key for small businesses. Your credit card company’s platform may be convenient, but it lacks the comprehensive all-in-one benefits of Expense Management Software systems like Brex, Divvy, and Airbase—which each offer unique features focused on the needs of small businesses. With the right expense management software that fits your business’ specific needs and desired features, you can streamline this process and save both time and money.
Exbo Group is here to help you decide what expense management option is the best for you—get in touch!