Optimizing Your Finance Administration Strategy to Better Track Expenses and Cash Control
For a business, regardless of size, scope, or scale, effective funds management is a prerequisite. Without it, the business is on a one-way ticket to financial doom.
As much as finance management is arguably one of the most important and labor-intensive processes businesses tackle on an ongoing basis, especially for those businesses with expanding finance management needs, utilization of finance administration software may be the more cost-effective alternative to taking home additional tasks or hiring new employees.
Finance Administration Software: An Overview
Finance administration software, in a nutshell, is a specialized collaboration application that takes care of back-office financial functions in a seamless, accurate and timely fashion.
This affords your managers more time to work on things that create value for the enterprise—like looking for ways to grow the company via capital expansion, mergers and acquisitions, determining other avenues to cut down on expenses, among others.
Financial Areas That Can Be Optimized With Finance Administration Software:
- Capital expenditure tracking
As a business grows, funds to acquire or upgrade existing assets like buildings, plant, equipment and other properties (CAPEX or capital expenditure, in financial lingo) will have to be allocated. Utilizing a finance administration software not only simplifies this very important task for requestors and approvers, but also allows for real-time visibility and easier tracking as well.
- Invoice intake process
Losing money via whatever means isn’t a laughing matter. While it’s alright to learn from your mistakes or the mistakes of others, prevention is, as you are probably aware, still better than cure. One reason a company gets penalized for late payments is because the invoice sent by a partner supplier has been misplaced or forwarded to the wrong staff for processing.
- Accounts payable
If you’re able to efficiently track your payables, your invoices are properly approved and documented, and you pay your dues on time, the likelihood of accumulating disgruntled suppliers becomes nil.
This means that if your supplies and much-needed raw materials are delivered to your premises without delay, you and your customers can rest assured that your operations confidently take on a business-as-usual stance, particularly when the assurance matters most.
- Purchase-request tracking and expense reports management
Enterprise expenses need to be tracked on a daily basis, the same way purchase requests are logged, documented, and passed on to an approving committee for review and approval. This way, you know that unauthorized expenses never find their way into your financial books.
Additionally, a comprehensive report lets you analyze your company’s expenses so you can devise ways to trim your spending wherever possible. Doing this is a lot easier if you have a systematic tracking approach than scouring through various emails to trace expenses and purchase requests one by one.
- Travel requests tracking
Like most other expenses, travel expenses for management and other personnel follow an approval process. Once approved, a detailed tracking of actual expenses (like airfare, hotel and other ground expenses) determines whether or not your budget is strictly adhered to.
If you’re using a finance management software enhanced by a workflow management software like Comindware Tracker, these expenses can be automatically linked to your central expenses database with relative ease.
- Contract approval
Sometimes, contracts get awarded to the competition not because you lack the manpower, systems, or track record. Sometimes, businesses lose contract awards because they either took their sweet time going through the provisions of the contract or the approval process was too complicated.
If your company thrives on the ability to beat deadlines, it’s good practice to keep in mind that your suppliers and other colleagues thrive on the same. Having reliable finance management software in place drastically reduces the time it takes for a contract to get approved, making way for long-term and healthy business partnerships.