10 ways to Reduce Expenses with effective automation of A/P and Procurement

With increasing pressure on CFOs to shave off (yet another) 5-10% of spend each year (!), what better way than to look at expense management and procure-to-pay solutions?

Expenses have often been the “invisible dragon” in the room – eating away at the profitability of your enterprise. CFOs and CPOs can tame the “beast” with Expenzing.

Post-modern ERPs like Expenzing represent the new wave of solutions, which augment ERPs, to bring in higher efficiencies and controls in the finance and procurement functions. Such solutions bring in expertise in specific areas to streamline and optimise, as well as provide strategic process enhancements in procurement and payments.

Using the Expenzing suite, there are many dozens of ways to control expenses. A few examples are listed here. 10 to be precise.

10 Ways to Reduce Expenses:

1. Small A/P teams which can increase their productivity by 100-300%!
Having an expense management solution enables businesses to run efficiently, even with smaller A/P teams. Process employee reimbursements and supplier invoices efficiently.

2. Centralisation. Stop maverick buying.
Automation helps get the HQ and the branch offices all on the same page. Centralisation of procurement and payments has never been easier. Automated procure-to-pay and sourcing solutions like Expenzing give you direct savings.

3. Enforcement of Rate Cards for all purchases and payments
After the Procurement team spends significant time in negotiating rates with suppliers for ongoing purchases, the challenge becomes, “how to enforce the finalised rates”. An automated system which enforces Rate Cards ensures that there is no way to bypass negotiated rates, from any office or department.

4. Payment Fraud Mitigation
You can prevent fraudulent payments to wrong suppliers by using automated tools like Expenzing for proper authorization of any payment. Automated due diligence to detect potential frauds in payments makes your task easier.

5. Welcome, Auditors!
Don’t cringe when auditors want additional details! With detail level information being online, you save time in audits. Now auditors can validate the controls deployed by you, as well as can look into any specific payment made in the past.

6. Online Negotiations for best rates
Use new age tools like online Reverse Auctions to get the best rates from chosen suppliers. This is a proven negotiation methodology that can help you get 20-30% lower rates.

7. Save time and reduce errors in Tax credits
You can manage your GST input credits (or of any taxes of your country) efficiently, thus saving time of your teams. Expenzing solutions help you streamline vendor empanelment especially related to taxes. You can ensure that supplier invoices quote the GST data correctly so you get the right tax credit.

8. Timely and Assured Receipt of Supplier Invoices!
With an effective automated solution, no supplier invoices are misplaced. You enable your supplier to submit invoices online through the supplier portal to save time and get discounts.

9. Optimised Travel Expense Processes
Travel expense management can be done effectively through a specialised travel expense management software. The earlier you book, the cheaper the tickets. And you can now minimise cancellation wastages. Also, reconcile ticket invoices through automation to reduce the travel wastages.

10. Expense Policy Enforcement
Having an effective expense management solution enables the HQ to ensure expense policy compliance and provides visibility and control over what’s claimed and reimbursed.

Organization have wasted a lot of time, effort, and money in managing indirect expenses the traditional way. Now is the time to go digital and manage spend better with solutions like Expenzing to achieve financial control.

Click here to download a presentation on this topic.

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About Ila Imani, CEO @Expenzing

Ila has over 25 years of experience in the industry, working in the field of business process and automation enhancement. Prior to founding Nexstep Infotech, she has worked with 3 organizations in the area of system analysis and design. She overlooks the product direction at Expenzing and takes a keen interest in changing technology trends and business requirements of clients. Ila is an IIM-C alumni with a specialization in Systems. She is deeply involved in several social causes, loves to travel and read.

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