Do these words, “expense management” and “spend management,” have you confused? You’re not alone! While these two terms do get used interchangeably in the corporate world, they are quite a different story altogether. Let’s break this down in a way that actually makes sense.
Let’s Get to the Point: What is Expense Management & Spend Management?
Expense Management: The Reactive Approach
Expense management deals with looking out for what is left in your wallet. It is concerned with managing expenses after they happen. As recently published by the Global Business Travel Association, an expense report takes, on average, 40 minutes to be processed manually by a corporate company. That sure does take a lot of time!
Key Components of Expense Management:
- The collection and processing of receipts
- The creation of expense reports
- The processing of reimbursements
- The auditing for policy compliance
- The audit trails
Spend Management: The Proactive Big Brother
You can view spend management as your financial crystal ball, one that is more comprehensive and forward-looking than ever before; according to the Institute of Finance & Management, it mainly includes:
- Budgeting
- Procurement processes
- Vendor management
- Contract negotiations
- Spend analytics and forecasting
The Real-World Impact: Numbers Tell the Story
Research shows that:
- Companies lose 20% of every dollar to inefficient processes
- Automated expense management can reduce processing costs by 75%
- Real-time visibility can improve budget accuracy by 35%
Expense Management: Transform Your Experience with REME
This is where modern solutions come into play. So you’re at lunch with a client, and instead of putting that receipt into your wallet where it could get lost or washed with your pants, you just take a picture and send it via WhatsApp to REME (ReimburseMe). Yes, it’s that simple!
REME has changed the traditional expense management practice with:
- Instant receipt capture via WhatsApp
- Automated verification processes
- Quick approval workflows
- Real-time tracking of claims
- Seamless reimbursement processing
No more lost receipts, no more delays in reimbursement, and surely no more dissatisfaction for employees!
Making the Right Choice for Your Business
When to Focus on Expense Management:
- Small to medium-sized businesses
- Companies with high volume of reimbursements
- Organizations with mobile workforces
- Businesses seeking quick implementation
When to Implement Spend Management:
- Large enterprises
- Companies with complex procurement needs
- Organizations focusing on strategic cost control
- Businesses with multiple departments and budgets
The future is already here, and it’s digital. Modern expense management solutions like REME are changing the game by:
- Reducing processing time by 80%
- Eliminating manual data entry
- Preventing duplicate submissions
- Ensuring policy compliance
- Providing real-time analytics
The Cost Factor
While spend management platforms might seem more comprehensive, they often come with:
- Higher implementation costs
- Longer training periods
- More complex maintenance requirements
In contrast, expense management solutions like REME offer:
- Quick implementation
- Intuitive user interface
- Cost-effective pricing
- Immediate ROI
Conclusion
Although both expense management and spend management have their distinct place within the world of business, the ultimate selection of a solution depends upon the unique circumstances surrounding one’s needs. Furthermore, many customers appreciate the beginning functional enablement that comes with using a strong expense management solution, such as REME-this strikes a balance between function and simplicity.
A Receipt capture and verification via WhatsApp is what you need. With all this making it such a simple process- take a photo of a receipt and raise an expense claim with a WhatsApp message; already REME has saved you time, errors, and, more than that, will keep you happy. Now then, who doesn’t like to turn a usually dreadful task into something so easy-it’s just a matter of sending a message on WhatsApp?
