Why you Should Automate Your Company Spend

  • Jitesh Patel, Group AP Manager at Soldo

  • 20.06.2022 10:30 am
  • #Automation , #DigitalTransformation , Experienced Accountant with a demonstrated history of working in various industries. Skilled in Cash Flow, Budgeting, Year End Accounts, Business Planning, and Analytical Skill

Traditional ways of facilitating and monitoring company spend can place a lot of demand on staff and members of the finance team, both in terms of time and resources.

Through automation, the process can be cleanly managed end to end. Freed up from cash, company cards and reimbursement, finance teams can be spared the work of piecing together the picture after the fact and focus on more strategic aims.

Automated spend systems capture:

  • Decision to spend
    Often the decision to spend, and the context, is not recorded in traditional spend systems, which can lead to difficulties in explaining and attributing the outlay later on.
  • Implementing the decision
    The facilitation of a spending decision in traditional systems can be high risk, especially if funds are moved from one pot to another to enable it. Automation can enable this in a secure way that reduces the risk.
  • Reconciliation
    By recording all the relevant data and information at the time of spending, everything is attributable and recorded in its proper context.

Finance teams that have automated processes such as spend know that the investment can not only provide greater efficiency but alleviate that strain and keep staff motivated and engaged as a result.

Greater control and stronger audit trails

Part of that motivation and engagement stems from the empowerment that a modern spending system provides staff. They are entrusted to spend as they see fit on the things they need, without the need to submit an expense application form or have an awkward conversation with their line manager or finance team.

Finance teams do not relinquish their level of control, though, as accountability is baked into the automated process. Finance teams can set parameters around spending limits, trusted suppliers and categories of spend with ease, providing peace of mind that company funds will not be misused.

Not only that but transactions can be monitored in real-time, through a web console or mobile app, so the finance team can approve or deny spending as required.

Addressing these transactions in real-time has the added benefit of an easy-to-follow chronology and a straightforward audit trail, meaning finance teams no longer have to spend time and resources reverse-engineering their spending patterns. The information is collected automatically, meaning accounts are clean, complete and in one place.

A secondary benefit of this becomes clear during audits, when the process is hugely streamlined by the clean, clear accounts, rather than requiring the auditors to interview staff and pore over receipts and accounts for hours or, indeed, days at a time.

Total visibility over spend

When staff spend, the risk of overspending or incorrect spending is greatly reduced as the finance team will be immediately able to identify the transaction in question, pinpointing where the money has been spent and by whom. Efficiencies such as this eliminate bottlenecks for finance teams as they have an instant and clear view of spend and issues can be addressed as and when they occur.

Provided you have compatible software, all this information is reconciled in your accounting software in real-time. The system automatically categorises the spending and assigns transaction codes, meaning it is correctly accounted for and the need for manual entry is removed.

Key takeaways

Ultimately, automation is a smoother, more efficient process for companies to manage their spending, providing total visibility and security from end to end. As a result, teams have more time and resources for more strategic work, while granting greater autonomy to staff.

Interested in how your business could benefit from automated company spend? Find out more about Soldo.

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