Corporate expense and travel management have always been a big part of the business industry. It is known to be the second-largest expense in companies after the total labor cost. However, corporate travel witnessed a setback during the pandemic. But, expected trends predict the recovery of the sector by 2024.
This revival would result in expense management companies entering newer waters regarding automation. The rapid growth of this industry would require companies to keep up with new trends. Multiple factors come into play. Managing all financial transfers, different payment methods, global markets, and types of work – hybrid and remote, etc., is important.
Trends and Predictions
Expense reporting is an essential part of daily business. It allows companies to track their expenses and manage budgets. This can play a huge role in making better financial decisions. The boom in technology has paved the way for automation. This was a good expense management solution backed by many companies.
The sharp rise in corporate travel has enhanced the need for expense management processes. Automation plays a significant role in expense reporting. Machines and artificial intelligence have taken this process to a whole new level. Mobile-based expense reports and automation have truly helped in magnifying the scale of this system.
The increase in mobile phones has played a huge role in the trend prediction of expense reporting. Mobiles allow each employee to be responsible and capture receipts to submit expenses in real-time. It is also possible to integrate this system with other software programs. It can help in the seamless management of expense reporting. Data can flow between departments limiting the error margin since there would be no need for manual data entry. Automation can help in largely reducing errors and improving accuracy. Additionally, there would be lesser time consumption throughout the process.
Some of the noteworthy expense reporting trends are:
Cloud-based solutions
Automated expense reporting is the need of the hour. In recent years, the shift regarding this scale of the business has become even more crucial. Companies have shifted their gears to a digitized expense management sector with the use of cloud-based solutions and proper security. This move is helpful for employees and the finance departments of the company. With fewer margins of error and a more cost-saving avenue, financial forecasting is also possible with this approach. It eliminates the need for excess paper-based expenses.
Enhance security features
Security regarding finances is an absolute must. Cyber fraud and hacking are on the rise. Financial scams are leaving even big companies vulnerable to attack. Investing in automated platforms that provide high levels of security and reliance on their methods is vital.
Such platforms eliminate the threat to security to a great extent with a complex network of safety features. Numerous strong blockchains support automated processes. These technologies are decentralized and help improve transparency. Companies can reduce the risk of fraud with the help of online data with ample security.
Greater alignment between departments
A major trend and highlight seen with expense reporting is the integration of the accounts, finance, and IT departments. Maintaining this balance in the company will lead to better use of its resources. It will also help in utilizing the funds in the best possible way. Investing in an expense management system can help you achieve the transparency and accessibility that you desire.
Predictions of expense management
The need to install proper solutions for expense management was highly underrated. The onset of the pandemic showed the need for streamlined solutions for big and small companies. The estimated growth of this sector has led to many companies adopting it as a viable solution.
Software programs that help with expense management are holistic. They provide benefits that range from receipts to the process of reimbursement of the employees. That can save a large number of hours and costs. Since these applications keep a precise record of the inflow of money and its expense, the margin of error in reporting or calculations is also low.
Future of expense reporting
The future and predicted trends of these reports are positive. They are likely to be shaped by technology. Changes in the work pattern due to the online process will help. The future of expense reporting may see these changes:
Limited manual data entry – The electronic methods will help take out data from receipts with minimal effort. By using all relevant information about the expenses, payouts will be easier.
Bulk filing – A huge advantage of this system is the ease of bulk filing expenses. Going through each receipt repeatedly can be taxing. Creating an expense report with the help of expense receipts and uploading them online can be time-saving.
Security – The encryption codes and protections in place will only take the necessary information from the receipts. Any data added will have protection with multiple layers of security.
Real-time data – Providing the accounts department with real-time data on your expenses will promote transparency and can be used for faster payouts.
Automation – Technologies such as artificial intelligence are vital. They will help create expense reports online. The reviewing of these reports can also be an added feature.
Analytics – These will be used to understand patterns and trends of the existing data. Companies can use previous data to identify errors, maintain records, and save costs.
Better policy enforcement – Rules from expense reporting systems will be followed automatically.
Conclusion
Business travel is an industry that is here to stay. The need to streamline expenses and have a one-stop solution is important. This is a highly competitive ecosystem. The competition has invited many players to come up with answers to expense management. However, the best solution is automation.
The future of expense management reporting seems optimistic. The prediction is that this approach will be adopted by most large-scale and small-scale industries in the coming years. Automated expense management is said to be a field that will be ruling over the global sector.