So how do you convince your boss to invest in automated expense management software? The answer is pretty simple: understand what your CFO’s role is today and what it will be in the future.
As your company grows, budgets for travel, workshops, and software will increase, and your CFO will likely be looking to keep costs down. And when it comes to controlling costs, your CFO probably thinks the existing manual expense tracking process is sufficient and you can just get by with your current system. But sometimes it is the employees who know better. You live and breathe the process of spending every day. You see the challenges and how automation technology and advanced expense reporting analytics can change travel behavior to control spending and improve compliance.
The good news for you is that in this article, we’ll arm you with information to help the CFO prioritize inquiries and understand what will truly make the biggest impact on the business.
- The Tasks your CFO Faces
- Reducing Spendings Processing Expenses
- Increasing the Employees’ Productivity
- Fully Transparent Expenses
- Immediate Access to the Information
- Сompliance with the Expense Policy of the Company
The Tasks your CFO Faces
While more and more businesses are switching to automated expense reporting software, some companies are still lagging behind. You must be prepared that your CFO will ask you “What is automated payment system and how the company will benefit from this software?”.
Now the CFO is playing a more strategic role, and the top priority of course remains the growth of the company. However, faster growth also poses challenges. Therefore, when designing strategies to support this growth, CFOs need to manage financial complexity while keeping costs in check. The tasks are not easy. To do these things well, CFOs need growth-focused tools.
Before convincing your CFO of the need for a system that provides an automated expense tracking process, you need to understand the priorities he faces today. The main goal of any financial officer is to identify the key opportunities to reduce company expenses. He is also concerned with improving productivity and efficiency across the company, increasing the transparency of funds and expenses, and risks reducing.
Now that you know the key challenges of your CFO, it will be easier for you to find the right causes to convenience him of the need for an automated expenses system. Let’s consider the top 5 ways to do this on the Expense Sensei expense tracking app example!
#1 Reducing Spendings Processing Expenses
Automated expenses reporting significantly reduces costs. Make it clear for your CFO. Describe your current expense submitting process from A to Z and indicate where the blockers are. It’s great if you can use a very basic chart to display the number of hours of work and the corresponding expenses. Thus, you will conduct the testing and evaluation process, visualize it and in the eyes of the CFO the changes will become quite feasible.
You will be probably asked how exactly the automated expenses system will reduce costs. The CFO may think that such a change will take a lot of time and money, however, Expense Sensei app eliminates most of the costs. Instead of filling out separate forms and requesting documentation for each expense, payroll departments can simply access the software and obtain the information they need. These automated reports can also be helpful when it’s time to prepare annual budgets and corporate tax returns. Having all the information at hand cuts down on time-consuming paperwork and relieves headaches.
#2 Increasing the Employees’ Productivity
One of the best ways to convince a boss to an automated expenses system is to point out that it allows employees to be more productive. Entering costs using a system like Expense Sensei frees up valuable time.
So, after you have mapped out your current process, you can calculate the time spent on manual tasks. In companies, which employees submit expense reports manually, it takes almost as much time to fix one report as it does to fill it out. To make your case more visible to the CFO, it would be smart to show him the costs and lost sales opportunities.
#3 Fully Transparent Expenses
Another benefit of using a system like Expense Sensei is the ability to accurately track all expenses incurred on business trips. Companies can see where each dollar is going and can make adjustments as needed. For example, if it turns out that the majority of employees are staying at a particular hotel, it may be helpful for travel managers to develop an arrangement with the hotel.
#4 Immediate Access to the Information
Automated spending also allows management personnel to immediately access travel and expense information, rather than waiting for another team to submit the data. Too often, it can take up to 24 hours to process a request for information, while using automated calculation software allows management to get the information they need immediately.
Expense Sensei is aimed to help your CFO quickly measure budget expenditures, reveal the historical budget overruns, and align cost management flow with enterprise goals.
#5 Сompliance with the Expense Policy of the Company
Another way to convince your CFO to automated expenses system is to point out that your expense management software is designed to comply with your spending policy. For instance, in case your company has a strict limit on the per diem expenses. With expense management software, employees know immediately if they are nearing their limit and can adjust accordingly. At the same time, if employees try to enter invalid expenses, the program automatically prevents them.
Finally, hit the CFO with your best shot by saying that your competitors are actively looking for tools to lower costs and increase profitability right now. They are striving to make their business more productive and rational. Unless your firm makes a decision to use the automated software, your company will struggle to catch up with other ones.