Expense management is an important part of financial management for businesses – and especially for large companies with large and complex spending levels. Here's what you need to know about how to improve your approach to governance when adopting an expense management platform for your business.
With manual methods, enterprise cost management is both inefficient and can create holes in the face of fraud and human error. However, by adopting a more powerful, complex and technological approach to cost management, companies can address these challenges, drive better visibility, and reap the benefits. benefits of automation, opening the door to improving spending practices across the organization.
What is an expense management platform for businesses?
Enterprise cost management is an ongoing process that includes managing, analyzing and controlling how money is spent within an organization. As such, it includes many activities related to procurement, such as budgeting, sourcing, negotiating discounts with suppliers, spending analysis, etc.
The volume and complexity of spending varies considerably between organizations. For smaller companies, cost management can take the form of simple expense tracking. Different organizations will have different types of expenditures to manage. These may include costs related to:
- Utilities
- Stationery
- Travel expenses
- …
For companies wanting more control over their costs, there are a number of strategies that can be implemented as part of the enterprise cost management process. For example, spending or procurement policies can be set out, setting out what types of costs employees can incur, details of relevant limits and procedures that employees need to follow.
Companies can also implement employee training or adopt an enterprise expense management platform to automate processes and improve visibility into spend.
Common problems in enterprise cost management
The cost management process is not always straightforward. All of the following challenges and problems can be encountered when implementing spending management:
- Human error and fraud: Human error is a factor to watch out for in any industry that relies on manual processes. Mistakes can lead to the wrong purchase of the item or data being entered incorrectly into the spend management system, which can affect the effectiveness of decisions the company makes regarding its spending. me. Likewise, companies that lack robust and secure processes may be at greater risk of fraud.
- Ineffective processes: Manual processes are inherently inefficient, meaning people may spend more time than necessary on cost management processes.
- Unclear policies or procedures: If employees are not fully aware of spending restrictions, they will be less likely to comply with them. As a result, this increases the risk of large spending, whereby employees make purchases that do not comply with current company policies and procedures.
- Lack of sync: It can be difficult to manage spending effectively in an organization when different types of spending are managed by different departments – each of which can manage their data and records in different ways. together. Without a centralized cost management process, companies may find it difficult to effectively track spending or make improvements.
Ways to improve enterprise cost management
So how can organizations improve their existing cost management processes? With the right strategy, you can overcome the challenges associated with spending management and drive greater efficiency and automation across the entire process.
Analysis of current business expenses
Before any improvements can be made, it is important to understand the current situation. Start by examining and analyzing current business spending data, including reviewing existing spending patterns, identifying anomalies and cost-saving opportunities, and identifying suppliers Which is doing well and providing value for money.
Classification of business expenses
It's important to categorize different types of spending into different groups, such as stationery, utilities, employee expenses, and more. That way, you can have more visibility. versus spending and comparison makes it easy to understand existing bottlenecks and identify opportunities for improvement. Depending on the nature of your business, it is also often appropriate to adopt different strategies for different types of expenses.
Applying cost management platform for businesses
By centralizing expense management, you can have more visibility into the process, which is especially important if your spending is managed by a large team. Adopting a dedicated solution optimizes the cost management process.
In September 2019, after a period of research and development, Bizzi launched a solution for lean cost management for businesses. The solution supports organizations to automatically process input invoices, reduce manual tasks, optimize performance and improve operational quality of the financial accounting team.
Bizzi is a pioneer in Vietnam to provide automated invoice processing and lean cost management solutions for businesses through the application of AI technology and process automation by RPA robots. Thereby, Bizzi helps organizations reduce 80% processing time and 50% costs, while increasing transparency and tax compliance for businesses.
With Bizzi Your business owns a set of solutions to help streamline digitalization and cost management, while also supporting the improvement of accounting team performance:
- Increase work productivity with the system to automatically check invoice information
- Minimize tax and financial reporting risks
- Automatic intelligent collation with 99.9% . accuracy
- Real-time cost control and management
- Maximize savings on manpower and paper costs
- Automate the document making and payment request process
- Speed up approval time
Currently, Business Expense Management Platform - Bizzi has been trusted and used by +1200 enterprises and large corporations such as Tiki, GS25, Circle K, PNJ, P&G, VNG, Grab, Ikea, Sabeco , Pharmacity,…
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