Year End Introspection on Benefits and Value of an Expense Reporting System

Benefits and Value of an Expense Reporting System like Gorilla Expense

As we approach the end of 2011, we have been discussing with our customers about the benefits they have seen from using our system. The feedback we received was plenty and came in several flavors.

Some of our customers loved getting away from the manual systems they used before. Some others loved the mobile app and how it simplified their lives. Others found huge benefits in integrating with their back-end system, which minimized manual work at two places – one at the user level and other at the accounting level.

We found a common theme running through several pages of feedback we received. It is no surprise that this resonated with research published by The Aberdeen Group in 2007.

It all boils down to this – At the end of the day, an expense management system must help a company achieve the following:

Cost reduction: Companies must cut costs associated with the managing of expense reports. With the help of a vendor who knows the game, companies can trim the fat at every step in the lifecycle – creating, submitting, processing, tracking and auditing of expense reports.

Enhance Productivity – By incorporating a system that is user-friendly and intuitive, employee productivity takes a shot in the arm. Using the latest technology, employees spend less time on unbillable work such as expense reports, thereby leaving more time for the important tasks.

Reduce Compliance Risk – Compliance comes in two flavors – internal compliance and government/tax compliance. Internal compliance includes the set up of policies that are lenient in nature, well understood and constantly communicated. Government/Tax compliance includes compliance to Sarbanes-Oxley, receipt capture and expense data as required by the IRS and other regulatory requirements.

Economical to Own – The application must not break the bank. It must be economical for the company to use while providing a modest if not quick ROI.

Seamless Interoperability – The application must be able to seamlessly integrate with the back-end system. Typically, this is less complicated with certain systems such as QuickBooks but can be complex for ERP systems such as Dynamics NAV, Dynamics GP, Dynamics SL, Dynamics AX, Oracle EBS, Sage

Quality Intel – The application must provide access to data that can be used to fine-tune various aspects of the process. Stakeholders should be able to slice and dice the data which should help them take steps that directly improve the bottom-line.

If all of these points can be achieved, the application’s implementation may be considered a success. It is also important to note that the process of selecting and implementing a solution is not linear. There are various dynamic parameters that vary drastically from organization to organization.

We specialize in implementing our expense reporting system with least disruption to existing processes. We help customers recognize the pertinent level of implementation while evaluating potential risk at every stage. Our expertise in integration with almost every ERP system under the Sun helps customers understand the benefits of going 100% automated.

If you haven’t contacted us yet, lets talk. We can be reached at info AT gorillaexpense.com. We’d love to hear from you and look forward to meeting your requirements.

2011 was great strides and 2012 is going to be greater strides. We are excited!

Why organization of T&E data is as important as ever

One area that many companies struggle with is organizing of expense related data. This is especially important because stakeholders in these companies frequently utilize the data to observe trends, study patterns and take proactive steps towards improving the T&E process. We have guided our customers in this area to use best practices. Here are some anecdotal observations –

The lack of success with data organization & management can be broadly attributed to the following reasons -

Case 1) There are no defined structures – Many companies ‘toss’ expense data into one area. While this expedites the submission process initially, it becomes onerous at a later point when specific information is required. What’s more, without any organization, all T&E related data look the same. If there is ever a case for lack of T&E visibility, this one takes the cake!

Case 2) There are defined structures but no retrieval mechanisms – Here, companies define areas but offer no means to retrieve and analyze the data. This makes any front-end organization pointless because the end goal of analysis and fine-tuning of data cannot be achieved. While this is still a problem, it is better than Case 1

Case 3) Too many structures – The other end of the spectrum includes companies that have defined to many areas. While this may give an impression of better organization, it is really an illusion because of too much granularity. To arrive at meaningful conclusions, several areas must be analyzed concurrently. This makes it burdensome and error-prone. Then again, this is definitely better than Case 1 and Case 2

From these notes, it is very obvious that organization of data is very ‘company specific’. Different companies have different processes and procedures, sometimes even disparate, and therefore need unique solutions to manage this.

A big factor in this is human nature. If something is arduous and complicated, we usually put it off. This leads to forgetfulness, which leads to a mad rush during tax time or at the end of the year to get organized. The implications are huge and the penalties for not managing the data better are substantial. Companies frequently throw away millions of $$ due to –

- Failure to take proactive steps from T&E data on time

- Not realizing all the tax deductions before tax season

- Forget to bill clients because post-deal activities were not categorized

- Lack of spend visibility on runaway projects due to untimely data management

etc.

At Gorilla Expense, we assist our clients by first helping them define clear, non-redundant areas. Once this is done, specific advice is provided to create future areas carefully. Everything is defined based on how these areas are managed in the back-end ERP/Accounting systems. Since our application is extremely pliable, it can adapt to varying formats. Only after this is technology employed.

Using unique tagging & mapping mechanisms built into the application, come tax time or end of the year, our customers are fully aware areas of spend, steps for improvement, categories to monitor for the next FY etc. which are broken down further by customer accounts, projects, work-orders and more. Now that’s called successful T&E data management!

We are always interested in discussing your pain points and help in any way we can. Contact us at info AT gorillaexpense.com.

Mobile Apps for Expense Management

When we started creating apps for our expense management solution, we focused on 3 broad categories – Capability, Security and Ease of use. There is always a dynamic balance between these parameters.

Capability – The app should be capable of solving a problem. Capability is usually broken down in terms of feature set. Of course, if the feature set is too expansive, the capability is expanded but ease of use suffers.

Security – With expense management applications, security is paramount. Compromising on security invalidates capability. At the same time, increased security can lead to more checkpoints thus resulting in reduced ease of use.

Ease of use – The mantra for ease of use includes an intuitive interface that is easy to follow and an  ‘All thumbs’ approach where beginner level dexterity is sufficient. An application that is too easy to use, usually lacks enhanced capabilities or provides reduced security or both. While this is not always true, it is usually the norm.

Striking a balance between these 3 is what good designs are all about. Here is an example – our mobile app allows users to submit transactions and validate them in no time on the web application. Other mobile apps allow users to create entire reports on the mobile device. With this expanded capability, ease of use is severely undermined. It takes longer to create and validate a report on the mobile device when it is not really needed. Plus, it is more error prone.

Fun facts about Expense Reports

Did you know -

- The average tab for a meal worldwide is $39 while dining alone

- New York generates the most T&E expense reports than any other state, most of it coming from the NYC area

- Dining accounts for 10-17% of the $$ value on an average expense report

- Entertainment (group meals/customer meals etc.) account for a typical 6% of an expense report

- US Travelers spend surprisingly 4% more on cabs than on rental cars in a year

- Ground transportation accounts for 5% of the average expense account

- For US companies, business travel to Europe is on the average 7% more expensive than to any other part of the world

- The most expensive cab fare is in Vancouver, an average of $73. In the US, San Jose is the highest at $51

- Hotel room rates are on an average 14% more expensive in Europe than the US

- NYC is # 1 among cities visited for business travel

- Laundry and meals are the two main expense types areas that see expense fraud

Some of these we found online, some were submitted by our readers. Do you have other T&E trivia to share? Send us an email (info@gorillaexpense.com) and we will add to the list.

Gorilla Expense - T&E Expense Management Solution

Comprehensive Expense Management Tool

• Gorilla Expense has mobile apps
• End-to-End Integration with Accounting Systems like SAP, MS Great Plains and other basic account systems like QuickBooks.
• Multi-level approvals
• Easy Implemetation
• More cost effective than Concur and advanced than other online tools
• Audit trail
• Multi-Currency
• Expense Policy Management
• Integrates with Payroll systems and project management systems making project cost collection easy!

Check out their complete list of expense reporting features

Overall the system is extremely intuitive and easy to use. Few steps and you are done!

Travel Expense Management Solution

Expense Management Made Easy

Gorilla Expense is a customizable online expense reporting solution

In today's world of globalization, travel has become an unavoidable aspect of conducting business. As more companies seek ways to reduce travel related costs, the top companies understand that they must adopt a mature travel management policy that can be incorporated into an effective enterprise-wide automated solution.

Gorilla Expense Makes Expense Reporting Easy. Check out the solution travel expense management solution now!