Explore expense reporting software options to identify the solutions that would work best for your firm. There are a wide range of solutions, both online and desktop based. Investigate any possible integration with your accounting software to maximize the efficiency of your operation.

Invest sufficient time and attention on your requirements before selecting a solution. Write out your expectations for an expense reporting software and decide what features are required and what are nice to have. Follow the three steps below to learn more about expense report software basics.

1. Identify expense reporting software suppliers.

2. Look into desktop based expense report software.

3. Try online expense reporting software.

Action Steps
The best contacts and resources to help you get it done

Look for expense reporting software suppliers

Use an online directory to identify possible suppliers of expense software. Make a list of the common types of expenses, the number of users, location of users, approvals required, frequency of reports and payment methods. Talk with your colleagues, financial staff and accounting services firm to determine how they are dealing with expense reports.

I recommend: Locate expense reporting software by viewing the supplier directories provided by The Software Network and Hotfrog. Send these firms your requirements and ask for a quotation. Read the quotation carefully and look for a separate price for the software, installation, service contract and customer service.

Investigate desktop based expense report software

Make a list of common types of expense reporting issues in your company. Look at the frequency of the filing, company policy and supporting documentation requirements. Meet with the accounting staff to discuss an expense reporting system and what types of features would be required in a company expense report software.

I recommend: Select desktop based expense report software to test in your firm. These expense reports can be customized to reflect dollar limits, approval requirements and company policy. Expensable and Data Basics both provide high quality products. Look at the operating system that you are using and investigate the space required for these solutions.

Download online expense reporting software

Look at Internet based expense report software to allow staff in multiple locations to complete and file there expense reports quickly and efficiently. Write out a policy and business practice to ensure the appropriate checks and balances are in place surrounding the use of online expense reporting software.

I recommend: Download free demos of online expense reporting software from the Internet. Aestiva and Expense Point are both well known expense reports online that are widely used. Install and test them with a few of your staff to evaluate for suitability within your firm.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Ask your accounting services firm to review the procedures around the approval of expenses entered using expense report software. Make sure that the business process will catch any attempted fraud immediately.

Expense report software helps your employees file their expenses more efficiently and helps your business meet tax and accounting guidelines. In addition, software solutions can ease manager approval, provide automatic routing and speed processing time for employee reimbursements. There are three kinds of expense report solutions:

1. Spreadsheets: Inexpensive but feature-limited.
2. Web-based services: Easy-to-manage, pay-as-you go online solutions offer easy access, quick reports and no software to install or maintain.
3. Software applications: Robust and installed on your own computers.

Action Steps
The best contacts and resources to help you get it done

Narrow the field

Because each business is different, you're going to have to evaluate your needs and check out your options, including pricing, which varies widely.

I recommend: The Software Network has a handy listing of common Expense Report Software with short descriptions.

Do it online

Web-based expense report options let you manage your expense reports via a browser and often contain excellent reporting and management features, in addition to other services.

I recommend: ExpensePoint is a low-cost but feature-rich web-based expense management solution that offers easy access, detailed reports and no software to install or maintain. You can pick an ExpensePoint solution that fits any size business. Other options to look at include Gelco Expense Management, ExpenseAnywhere, and Expensewatch.com Essential.

Integrate with QuickBooks

If you use Intuit's QuickBooks small business financial software, consider an expense reporting solution that you can integrate with the program.

I recommend: Check out the QuickBooks-compatible ExpensAble.

Use a spreadsheet

If you use Microsoft Excel, you can use a spreadsheet-based template to ease expense report handling and management. Again, this option lacks more robust features available on Web systems or in productivity software packages.

I recommend: Start with a look at MicroSheet Systems.

Run it on your PC

Software-based solutions run on your own PCs or servers and can often have Web-based interfaces.

I recommend: Start with a look at ExpenseWatch, ExpenSite, and Zoom Systems.

Buy a bigger package

Consider if you can benefit from a solution that has additional scope. For instance, do you need to track employee hours? Project-type expenses? If so, consider a solution that has additional functionality or modules that you can add on in the future.

I recommend: NetSuite gives you a wide package of financial tools, including expense reporting.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Check out free trial offers and demos before you commit to buying.
• •  If you're not sure about a solution, talk to a customer service representative at the company. Most will tell you what kind of business needs they serve best and if your needs fit their solution.

Learn how to use expense report software to increase your efficiency and reduce the duplication of data entry work. Expense report software can be customized to be in compliance with your firms internal expense software policies. Discuss the settings on your expense report software with your accounting services firm to ensure strong internal controls are in place.

Discuss the proposed changes with all your staff and use this opportunity to refresh internal procedures and ensure all staff are provided with a written copy. The instructions for working with expense software should be simple, straightforward and no more than one page in length. Follow the three steps below to learn more about using expense reporting software.

1. Read your expense report software manual.

2. Sign up for a course on expense reporting software.

3. Expand your knowledge of expense reporting.

Action Steps
The best contacts and resources to help you get it done

Review your expense report software manual

Read the manual provided with your expense report software. Pay close attention to the step by step instructions for your expense reporting software. Set aside time every day to focus on the basic features of your online expense reporting system. Work through the features of the expense reporting software, including the structure behind online expense reporting.

I recommend: Read the manual provided by Clients & Profits X or SuperPro Expense Report. Both provide documentation of how to use the features of your online expense reporting system, in addition to instructions on running report and analyzing spending. These advanced features provide the greatest benefit when using expense report software.

Take a course on expense reporting software

Attend a training course or seminar on the expense reporting functions provided in your expense report management system. Look at the agenda and select a session that covers the topics that are of interest to you. Prepare for the expense software course by reading the relevant sections of the online expense reporting manual and trying out the features.

I recommend: Invite processing staff to attend the training seminar. Ask staff to make a presentation of what they learned to the remaining staff. Unanet provides Internet based seminar on expense software systems. The Accounts Payable Network offers seminars and courses on expense software.

Watch expense reporting videos

Schedule time to review the best practices on managing employee expense reports and expense reporting system initiatives. Find out how other firms and businesses have implement the concepts of expense management. When using expense report software, it is important to have a detailed business process to support the software.

I recommend: Learn about how other firms work with expense reporting software by watching a video demonstration on expense reporting software from Get My Time or Concur. Both firms provide expense reporting software, training manuals, videos and online seminars to help with the implementation of expense reporting software.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Expand your knowledge of how to work with expense report software to yield all the potential benefits for your business.

Expense report software can be either online or a desktop application. There are a myriad of features and functions that you can either buy “off the shelf” with desktop applications, or you can have them designed with customized modules by online vendors.

You can begin the process of identifying which features and functions are absolutely necessary and those that are “nice to have” by polling users in your organization. Some functions that can be included are travel and entertainment management, reimbursement management, and compliance management. Features that make the software easier to use include a currency converter, drag-and-drop, and smart lists.

Action Steps
The best contacts and resources to help you get it done

Travel and entertainment, or T&E

Also referred to as T&E, travel and entertainment refers to any expenses related employee travel and activities associated with entertaining customers. T&E includes hotel stays, meals and various forms of entertainment such as golf, concerts etc. This type of expense is deductible for tax purposes, so tracking and documenting these expenses is important.

I recommend: Microsoft has a definition of, as well as good advice about, managing T&E expenses.

Smart lists

Smart lists are often included in expense reporting software. They are unique lists created with input from users on topics they would consider important. Smart lists can be lists of bills that are coming due, responsibilities that are shared with others, and items that are high priority.

I recommend: Remember the Milk has a description of smart lists.

Drag-and-drop transactions

Drag-and-drop transactions are performed by moving icons around on a screen in software by manipulating a mouse. Expense tracking software often includes drag-and-drop features, which most users are familiar with, to make the program easier to use.

I recommend: The Linux Information Project defines drag-and-drop functions.

Currency converter

Currency converter is a program that can calculate the exchange rate of one currency into that of another. A currency converter is often included in expense reporting software.

I recommend: XE has a popular universal currency converter.

Travel Rewards

There are dozens of reward programs available for frequent travelers, and it's hard to find the right one for you. But the best approach is to conduct research and then stick with the same program as much as possible for all travel needs.

I recommend: A good place to begin researching is CompareCards.com

Reimbursement management

Reimbursement management is another feature that can be found in expense reporting software and refers to the process of paying back employees for out of pocket expenses they incur while on company business.

I recommend: Reimbursement Management Consultants manages reimbursement for the heath care industry.