Mobile expense management (MEM) has become increasingly crucial for businesses and individuals alike, as it offers a convenient solution for tracking and organizing expenses on the go.
With the widespread use of smartphones and technological advancements, expense management apps have transformed how we manage our finances, making the process more efficient and less time-consuming.
As more businesses and individuals adopt managing their expenses with mobile solutions, they can expect to see improvements in the accuracy and efficiency of their financial processes.
What is mobile expense management?
Mobile expense management involves the process of tracking, controlling, and approving expenses incurred by employees using their mobile devices for work purposes, such as business travel, client meetings, and remote work.
What are the benefits of mobile expense management?
Considering the benefits, there should be no surprise that there has been a real upswing in using mobile devices to manage business expenses in recent years.
Here are just some of the key benefits of MEM.
One of the critical benefits of expense management with a mobile device is the ability to instantly capture receipts and other financial information with your smartphone while on the go.
This enables users to make note of expenses as they occur immediately instead of risking misplacing a receipt and losing it or forgetting the details later.
2. Enhances efficiency and reduces errors
Another advantage of managing expenses with a mobile device is its ability to automate tedious, manual tasks such as data entry and expense validation.
This frees up valuable time for employees, allowing them to focus on strategic activities that drive the organization’s success.
The digitization of receipts eliminates the need for manual data entry and reduces the risk of errors.
3. Enhances visibility
A vital aspect of a successful mobile expense management strategy is enhancing visibility into business spending trends.
Organizations can comprehensively understand their business expenses by leveraging MEM solutions.
This improved visibility allows for identifying spending patterns, trends, and potential cost-saving opportunities.
Companies can then make informed decisions on managing their expenses more efficiently.
One way MEM achieves greater visibility is through real-time analytics and reporting tools.
These tools gather data from various sources and compile the information into user-friendly, visually appealing dashboards.
Decision-makers can then monitor key performance indicators (KPIs) and gain actionable expense insights.
4. Reduces overspending
These apps often include features for categorizing and analyzing expenses, helping users identify patterns and opportunities to reduce spending.
Utilizing MEM tools and services can lead to significant cost savings by identifying areas of overspending and streamlining spending habits.
5. Improves compliance and communication
Incorporating mobile devices into expense management processes has improved policy compliance and communication.
Mobile expense management solutions simplify compliance by streamlining and automating critical processes related to corporate expense policies, approvals, and local regulations.
By implementing an expense management mobile system, organizations improve their internal operations and foster a culture of accountability and transparency.
Employees are more likely to follow the guidelines and adhere to any limitations by having instant access to company expense policies.
6. Simpler expense submissions
The submission of expense reports can be a real pain point for employees.
Proper expense submission involves accurately recording all necessary information, such as the amount spent, the vendor, the date of purchase, and a description of each expense.
In addition, employees often need to attach receipts or other supporting documentation to validate their claims.
Receipt tracking with mobile devices and OCR technology
One way to achieve efficient expense reporting is through receipt tracking with OCR (Optical Character Recognition) technology.
OCR technology extracts relevant data from these digital receipts, such as the date, vendor, and amount spent.
The software then processes the receipts using OCR technology, categorizes the expenses, and converts them into digital expense records.
This saves employees time and effort when keeping track of business expenses for expense reports.
In addition to OCR, there are other features to look for in a mobile expense management system device, such as:
- Automatic categorization: The ability to assign expenses to specific categories based on the extracted data.
- Integration with accounting software: Connecting your expense management system with accounting software can streamline your financial processes and save time during audits.
7. Faster expense approvals
Expense approvals are critical in controlling company spending and ensuring expenditures align with organizational policies.
Managers and supervisors typically review and approve employee expense claims, checking for accuracy, compliance, and legitimacy.
One of the primary benefits of these mobile solutions is the automation of approval processes.
By integrating with your company’s existing expense policy, employees can quickly and easily submit their expenditure claims, and the system can automatically assess whether each claim meets the criteria set by the organization.
This ensures that employees adhere to the company’s financial guidelines, reducing the risk of inappropriate or unusual spending patterns.
Additionally, mobile device accessibility has made it more efficient for employees to resolve any issues or discrepancies in their expense reports in real-time, leading to quicker approvals and reimbursements.
A smooth approval process can boost employee satisfaction and improve expense tracking.
Mobile expense management has become a valuable tool for organizations, enhancing efficiency and empowering employees to manage their spending better.
What are some mobile expense management solutions?
Mobile expense management tools are designed to simplify the process of tracking, controlling, and approving costs incurred by employees using their mobile devices for work purposes.
These tools often include features such as receipt scanning, expense reporting, and integration with accounting software.
Here are some popular tools for mobile expense management.
Shoeboxed is a favorite among industry leaders as it is a popular expense management device that focuses on simplifying receipt tracking and management.
With a user-friendly mobile app, users can easily capture receipts for business expenses.
Shoeboxed lets users capture and upload receipts easily by taking pictures using their mobile device.
The app uses OCR (optical character recognition) technology to extract meaningful information from the receipts, such as vendor names, payment dates, and amounts, making the data easily searchable.
The app also automatically categorizes the expenses and converts the stored data into expense reports with images attached with just a click of a button.
This data can be seamlessly integrated into other accounting software for easy reimbursement or tax filing.
Concur is a comprehensive expense management solution offering expense tracking, travel booking, and employee reimbursement features.
Available on iOS and Android devices, the Concur app allows users to submit expense reports, plan business trips, and manage approvals.
Concur’s integration capabilities with various accounting software and other business tools make it a very versatile solution.
Quickbooks and Expensify
Quickbooks and Expensify are known for their robust expense and inventory management features.
Intuit’s QuickBooks offers an array of expense tracking capabilities, including receipt scanning, expense categorization, and easy reimbursement.
Expensify, on the other hand, is designed explicitly for expense management, with a user-friendly app that simplifies receipt capturing, expense reporting, and approval processes.
Both solutions have mobile apps available on iOS and Android devices, and they can be integrated for a streamlined expense management process.
Frequently Asked Questions
A MEM solution should offer features that provide effective control over digital workplace expenses. Some essential features include capturing receipt images, automating financial coding, streamlining approvals, and maintaining complete transparency in the mobile device ecosystem. A robust solution should also facilitate the management of laptops and applications and ensure tightened security across all devices.
Using MEM software can lead to several key benefits for businesses. These include cost control, increased visibility into technology expenses, streamlined approval processes, and enhanced compliance with company policies. Implementing an expense management mobile solution can also improve overall efficiency and offer insights into potential areas for cost savings or resource reallocation.
Yes, MEM systems can typically integrate with accounting software. This integration enables a seamless transfer of financial data, such as employee expenses and report approvals, between the two platforms. The outcome is a more streamlined workflow, reduced manual intervention, and improved expense tracking and analysis accuracy.
Using digital receipts and eliminating physical paperwork boosts speed and efficiency in the mobile expense management process.
By implementing these systems, businesses can benefit from increased productivity, time savings, and improved compliance, all of which contribute to the bottom line.
Caryl Ramsey has years of experience assisting in different aspects of bookkeeping, taxes, and customer service. She uses a variety of accounting software for setting up client information, reconciling accounts, coding expenses, running financial reports, and preparing tax returns. She is also experienced in setting up corporations with the State Corporation Commission and the IRS.
Shoeboxed is a receipt scanning service with receipt management software that supports multiple methods for receipt capture: send, scan, upload, forward, and more!
You can stuff your receipts into one of our Magic Envelopes (prepaid postage within the US). Use our receipt tracker + receipt scanner app (iPhone, iPad and Android) to snap a picture while on the go. Auto-import receipts from Gmail. Or forward a receipt to your designated Shoeboxed email address.
Turn your receipts into data and deductibles with our expense reports that include IRS-accepted receipt images.
Join over 1 million businesses scanning & organizing receipts, creating expense reports and more—with Shoeboxed.
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