Expense Management Solution Selection

Expense Management Solution Selection A Guide to Choosing the Superior Solution Fiscal Management Associates 2015

You have decided to update the way your organization manages expense reporting and can we say, it s about time? Whether you are looking to increase operational efficiencies by implementing a new solution or looking to switch to an alternate solution offering greater functionality with your current ERP (enterprise resource planning), there are valuable benefits to be gained by automating your organization s expense reporting. With so many expense management solutions available on the market, it is difficult to understand the scope of offerings and the features differentiating these systems. This tool will help guide you toward selection of the best expense management solution for your organization s unique needs. Understanding Expense Management Expense management is the set of practices organizations utilize in order to monitor, pay, reimburse, and audit business-related expenses incurred by employees. Traditionally encompassing expenses related to travel and entertainment, this process now includes the array of costs employees incur on the job, either with a corporate credit card or personal spending. For nonprofits this can include travel to sites, purchase of program supplies, and many other important expenses. The conventional expense management process can be laborious, paper-heavy, time consuming, and error prone. Expense management software improves and streamlines the process of monitoring costs by simplifying coding, automating approval workflow, improving compliance with corporate expense policies, and providing greater visibility into spend analytics, all with the added benefit of reducing operating and expense processing costs. The Process Incur Expense Submit Expense Report Reimbursement Create Expense Report Report Approval Reporting 1

Where to Start PREPARE The first step in the software selection process is to define your current organizational challenges, in order to create a list of priority features the new software should accommodate. There are plenty of benefits to come from implementing an expense management system, but the best system for your organization is one that meets your priorities. Ask yourself, what are the three biggest challenges our organization faces when it comes to managing expense reports? Write them below. 1. 2. 3. Go back to your team and ask the same question. Were their answers similar? Did you find it difficult to limit yourself to just three responses? Use the space provided below to write down additional major challenges. After you have made a list, use the boxes at the right to rank order the challenges so you can begin shaping your organization s priorities. 2

COMPARE Now that you have outlined a few of your priorities, it is time to start comparing various solutions. Most solutions offer free demos, which are a great way to become familiar with a system s capabilities and interface. As you begin to demo solutions of your choice, refer to the Expense Management Solution Selection Worksheet at the end of this workbook. This worksheet allows you to compare expense management solutions by jotting down notes on each systems functionality. The worksheet lists a number of key functions to help you differentiate between systems. These functions are defined below for your reference. Platform Supported Mobile Portal. Whether the solution is available via a mobile application or web page that can be accessed by smartphones and tablets. Note which platforms a solution will work on, as some only work on iphone or Android. Off-line Capability. Capability of the system when there is no access to Internet connection. Can you code expenses while on an airline or subway and upload the report later? Expense Report Receipt Scanning. How receipts can be uploaded and whether there is technology to pre-populate the expense report from the receipt scan (this technology is called Optimal Character Recognition, OCR). Alerts. Automatic alerts to assist policy compliance. Types of alerts could include: corporate policy violation, missing receipt, duplicate expense, un-submitted and overdue expenses, and automatic email notifications. Flexible Expense Coding. How many cost centers (i.e., expense category, project, client, location, grant, etc.) can an expense be coded to? Are there enough for your organization s Chart of Accounts? Can the expense be split and coded to two categories (i.e., coding to two different projects)? Expense Auto-categorization Feature. Ability of the system to begin recognizing how an expense may be categorized based on the vendor. Assistants Login. Feature allowing access to an individual s profile from another profile (ex., for an assistant to masquerade as his or her boss). Flexible Approval Process. Customizable approval process allowing for ability to approve/return individual expenses from the report, set parameters on number of approvers, etc. 3

Travel Management Travel Booking & Itinerary Viewing. Ability to book travel from within the software or auto-populate expense report from travel itinerary. Trip authorization and itinerary updates. Captures Mileage, Time and Additional Billable Expenses. Whether the solution includes fields for travel management and if these fields auto-populate or require manual entry. Currency Conversion. Number of available conversions. Map Feature. Sync with mapping technology (such as Google Maps) to auto-populate mileage and reimbursement rate for expense report. Administration Reporting and Analysis Capability. Customizability of report and analysis formats. Inclusion of key performance indicators (KPIs) and other significant data points. Audit Trail. Where and how receipts are stored and for how long they are available. Policies and Procedures. Extent to which policies can be created, updated, and managed. Integrations Accounting System Integration. How does the system work with your current ERP? Can the systems speak to each other directly or does it require a file upload? Reimbursement Structure. Support for payment types, including payroll, direct deposit, PayPal, and other formats. Credit Card Integration. Link between employee profile and corporate or personal cards and timeliness of statement updates within solution. Ensure the system works with your specific bank. Other Supported Integrations. What other workflow systems are you considering? Accounts payable workflow software, payroll, time and attendance, etc.? Some expense management software systems include other modules or are integrated with other systems. Implementation Billing Model. Charged per user, per month, or per report. Is there an implementation fee? Are there incremental charges (i.e., if you have more users per month than expected)? Time Required for Implementation. Time required for the system to be fully operational. Customer Support. Level of customer support and training provided with the contract. Additional Features / Add-ons. Space provided for you to fill in other important features. 4

SELECT The third step in the software selection process is selection! Now that you have outlined your priorities and taken timing and functionality into consideration, you are better equipped to choose the software best fit for your organization s unique needs. Resources There are a number of solutions available. Below are just a few to help get your search started! https://www.certify.com/ https://www.chromeriver.com/ https://www.concur.com/ https://www.expensify.com/ https://www.nexonia.com/ https://tallie.com/ https://app.trinetexpense.com/ 5

Expense Management Solution Selection Worksheet Instructions: Use this worksheet to compare expense management software solutions by entering notes on each system's functionality. An example has been provided for your reference. Example Solution Solution #1: Platform Supported Mobile Portal iphone and Android app Off-line Capability Can upload receipt and code expense; will sync with system after returning online Expense Report Receipt Scanning OCR technology autopopulates expense report from receipt scan Alerts Duplicate receipt detection Policy violation alert Flexible Expense Coding Codes expense up to three dimensions Expense Auto-categorization Feature Auto-categorizes receipts from resaturants as 'Entertainment' Assistants Login Not available Flexible Approval Process Can allow for up to five approvers Travel Management Travel Booking & Itinerary Viewing Captures Mileage, Time, and Additional Billable Expenses Currency Conversion Map Feature Integrates with GoogleMaps to track mileage 6

Expense Management Solution Selection Worksheet Instructions: Use this worksheet to compare expense management software solutions by entering notes on each system's functionality. An example has been provided for your reference. Example Solution Solution #1: Administration Reporting and Analysis Capability Customizable dashboard Audit Trail Receipts and reports stored on system up to seven years Policies and Procedures Can only be created / changed by senior level management Integrations Accounting System Integration Two-way integration with Intacct CSV export for other systems Reimbursement Structure ACH Credit Card Integration Captures credit card transactions in real-time Other Supported Integrations Two-way integration with Bill.com Implementation Billing Model Per user per month One time implementation fee Time Required for Implementation Approximately four weeks Customer Support Admin and end user training offered with contract Additional Features / Add-ons 1. Time and Attendance addon 2. 7

About FMA We are a dedicated team of consultants who believe in making the world a better place. That s why we make it our mission to work with nonprofits and foundations to help them develop the capacity they need to fulfill their mission more effectively and efficiently. Guided by our mission, vision and values, FMA builds fiscal strength and delivers operational excellence to organizations across the social sector. Learn more about us and our services at fmaonline.net. Consulting Maximize the effectiveness of your decision-making with the right financial advice, guidance, and tools. Our experienced team of consultants can help address fiscal and operational challenges whether you are seeking to upgrade your fiscal infrastructure or build the business platform necessary to sustain your future growth. Outsourcing Custom tailored professional services and staff keep your finance office running, whether for a few weeks, a few months, or as a permanent strategic solution. From bookkeeping to CFO-level oversight, our outsourcing staff can execute critical tasks, consult on HR practices, and implement software solutions. Training Serving individuals, with our Certified Nonprofit Accounting Professional course, and cohorts of organizations, with engaging fiscal management curricula, FMA s training services are delivered virtually or in-person on a wide range of fiscal and operational topics, grounded always in practical experience and actionable guidance. 212-931-9112 info@fmaonline.net www.fmaonline.net NEW YORK CHICAGO SAN FRANCISO LOS ANGELES