Key Benefits of Invoice and Expense Tracking Software
Published: 07/05/2023
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Most digital business tools on the market serve multiple functions. When we consider invoice and expense tracking software, it is often seen merely as that. However, in this article, we aim to show that its applications are far more extensive than its name suggests.
If you are exploring better ways to manage your employees' expenses, you’ve probably come across advice on digitising the process. However, it might seem unnecessary to invest in software that only handles a few tasks, such as invoicing. If you think this way, this article is for you. We also believe that going digital can enhance your internal operations, but having the right mindset is crucial.
In simple terms, every piece of software has many features that are often overlooked because they require specific perspectives and criteria to notice. In this blog, we aim to broaden your understanding of invoice and expense software. It offers much more than just basic financial functions, extending to team management and reclaiming time lost on administrative tasks. But let’s get straight to it.
The following are some of the most well-known benefits of invoice and expense tracking software:
Easier auditing;
Full visibility of your financial situation, centralised in one location;
Foundation for educated decision-making;
In-depth reporting;
Automation options aimed at bettering your processes and saving time;
Better team management.
As you can see, there are several quite convincing reasons to regard a designated system as a good investment. But before you commit, why not examine each one separately?
One of the key features of SaaS software is its ability to automate business processes. This is expected, as the software effectively reduces manual workload. Furthermore, it is free from human errors and operates more quickly than any person could. Let’s examine how it proves useful in invoicing and expense tracking.
The invoicing process isn’t necessarily complicated, but it can sometimes involve certain complexities. What makes it truly demanding is often the volume and frequency. Naturally, no one wants to waste time on repetitive tasks, no matter how essential or simple they might be. It makes work dull and tiresome, not to mention takes time away from things that genuinely matter. That’s why you should automate the invoicing process.
The most suitable option for this job is timesheet software, which would include both invoicing and expense modules. Instead of manually entering information, the tool would extract data from approved timesheets and, if relevant, expense claims. Depending on the software, you can usually customise the layout of the invoice as well, ensuring it aligns with your branding. Finally, instead of sending each invoice separately, you can programme the system to do that automatically. This approach is not only time-saving but also reduces errors and leaves all parties involved satisfied.
Speaking of accuracy, it becomes especially important when discussing data collection and analysis. This is mainly because the insights you gather should form the foundation of all your decisions. Like most SaaS solutions, invoice and expense tracking software includes reporting tools. However, how flexible and detailed these tools are depends on the specific solution; in our experience, we have yet to find a tool that doesn’t provide quality. Often, it’s the details such as customisation and data filtering that may not be a big deal for some companies but can be a complete deal breaker for others.
A great way to deepen insights from a report, invoice, and expense tracking software is by integrating it with other solutions. This allows analysing data in various contexts, assessing its influence on other processes in your business, and understanding its overall impact. Too often, we see a mistake in assigning one type of data to a specific area, when in fact, it affects multiple elements. An integrated tech stack helps you create a more comprehensive picture of everything happening in your company. And, believe it or not, expenses constitute a significant part of it.
Expense management naturally falls under the category of team-related queries. The same applies to invoicing, as both are linked to how you communicate with your staff. Different businesses use various types of workforce, approaches, and models. However, the right software can easily unite even the most diverse teams across any industry.
Hybrid working is one of the best outcomes of the pandemic as businesses have recognised the benefits of relying on remote workers. Naturally, the biggest advantage is a much larger talent pool, no longer limited by an employee’s proximity to your business. This has also encouraged more companies to collaborate with contractors, opening many doors to exciting opportunities.
The main challenge stems from communication aspects. By that, we don’t necessarily mean direct conversations. Things like payments, holiday management, and other procedures fall into this category. Since most contractors typically have different start dates and rates, it can be tricky to integrate them with your permanent teams. Instead of conducting weekly or monthly pay runs for the entire company, you would need to do so multiple times throughout the period. Of course, this is easier if you use software that can automate all related processes... Fortunately, not only does such software exist, but you also have options.
No matter what kind of workers you hire, it’s your duty as an employer to stay on top of compliance. Whether it's ensuring their documentation is current, they have the relevant certification, both parties adhere to the contract, or anything else. This might seem obvious if you run a small team, but it can become complicated as your workforce expands. And, honestly, it’s better to be prepared.
A centralised system that stores all your employee information greatly simplifies your life. Firstly, most of the data is gathered during the initial onboarding process, making it quite hands-off for you. Secondly, as previously mentioned, it helps you stay compliant. Some systems even alert you when documents are nearing expiry. And finally, consider how easy and smooth the audit process will be. If this isn’t tempting, we don’t know what is.
If you are still uncertain whether specialist software is a worthwhile investment, our final point is that it is indeed a long-term one. SaaS technology is designed to be enduring since it can grow with the user, adapting to the changing needs of the business, often without additional cost.
As the title of this section suggests, there is no limit to progress when you use invoice and expense tracking software for your business. Although the features it offers may seem quite specialised and only relevant to a few operations, that is far from the truth. You should see your organisation as a single unified entity rather than as silos and departments. Because, ultimately, everything you do contributes to your overall success.
When you automate invoicing and expenses, you not only streamline these particular processes but also gather data that can be utilised elsewhere, enhancing performance. For example, when all invoices are issued at the same time, you gain better insights into which clients are slower to settle them promptly. From there, you can begin investigating other interactions you have with them, potentially identifying gaps and finding opportunities to improve communication. This is just one example; the possibilities are endless. It all depends on your perspective, goals, and creativity.
Although expense management and invoicing might not seem important enough to require a separate tool, we strongly recommend you consider it. Firstly, you should not underestimate the significance of these operations. Secondly, despite its name, invoice and expense tracking software will encompass more areas than just the one implied by its name.
The main benefit and selling point of automation is saving time on manual tasks. It’s often overlooked that it also offers accuracy, deeper insights, and endless opportunities to enhance your procedures. All of this expands your reach, creating multiple pathways towards success. Additionally, you can layer your solutions, unlocking new features and data collection channels. Overall, the key is to understand that there is virtually no limit except your own mindset when it comes to modern business software. Once you free yourself from these constraints, there is only one direction—forward.
Are you prepared to start this journey? Just give us a shout.