What is an expense management app? Explanation of advantages and disadvantages and points to note when introducing

Expense management apps allow you to manage the costs of running your business from your smartphone or tablet. The introduction will lead to more efficient accounting operations.

However, there are probably many people who are worried about “I don’t know what it can do specifically” or “Should I introduce it to my company?”

This time, we will explain the overview of the expense management app, the advantages and disadvantages, and the points to note when introducing the expense management application.

By the end, you’ll have a better understanding of expense management apps, and you’ll be ready to consider adopting one.

1. What is an expense management app?

The expense management app is a tool that allows you to enter, apply for, and approve expenses from apps such as smartphones and tablets .

It can be used from a terminal and can be applied regardless of location, such as while on a business trip or while traveling, so you can easily apply for expenses. In addition, it is convenient for the person in charge of accounting to save time and effort because approval work can be done on the app.

2. 7 Benefits of Expense Management App

The benefits of expense management apps are:

1. You can enter expenses just by uploading photos to the app
2. Travel expenses can be calculated easily
3. Can apply from outside the company
4. Leads to paperless
5. Approval work can be speeded up
6. Prevent fraudulent applications and mistakes
7. Respond to legal changes

Each is explained in detail below.

2-1. You can enter expenses just by uploading photos to the app

As an advantage of the expense management app, there is a function (OCR function) that automatically enters information such as the amount and date simply by taking a picture of the receipt .

Compared to manual input, if you take a photo, you can enter expenses quickly and easily on the app. The more receipts you enter, the more time you save.

Auto-entry not only reduces the time and effort required to enter expenses, but is also effective in reducing human error. By reducing mistakes, the burden of checking by the accounting staff can also be reduced.

Depending on the expense management app, the necessity of entering expense items and the range that can be automatically entered for the OCR function will differ, so choose the one that best suits your purpose.

2-2. Travel expenses can be calculated easily

The expense management app makes it easy to tally transportation expenses.

If you are a company with a lot of business trips and outside work, it takes time to settle transportation expenses. It takes time not only for the applicant but also for the person in charge of accounting to check the shortest distance to the destination and exclude the commuter pass section.

Apps linked to transportation IC cards can easily obtain boarding and alighting history, so there is no need to enter boarding and alighting sections or calculate the amount . In addition to reducing the time and effort of entering expenses, it is also possible to reduce the risk of fraudulent applications that increase in size.

Some apps can work with credit cards. Make sure you choose apps that have strengths in your company’s expenses.

2-3. You can apply from outside the company

Using a terminal with an expense management app installed, you can enter and apply for expenses while you are away from home or away from home . You will be able to apply immediately when the expenses are incurred, so you will be able to reduce omissions.

Just by taking a picture of the receipt, the receipt will be electronically saved in accordance with the Electronic Bookkeeping Law. You don’t have to go to the office just to submit receipts or stamp your seal.

2-4. Leading to paperless

With the expense management app, receipts are electronically stored in accordance with the Electronic Book Storage Law simply by taking a picture of the receipt, saving you the trouble of storing it on paper.

Receipts are required to be stored for 7 years, and in the past, submission and storage of the original was required. However, the Electronic Book Storage Law will be revised in 2022, and if you store electronic data in compliance with the law, you do not need to store the original receipts.

Receipts are saved in an expense management app that supports the Electronic Book Storage Act in accordance with the Electronic Book Storage Act. There is no need to secure physical storage space, and it is also effective in preventing loss of receipts.

2-5. Approval work can be speeded up

Expense management apps can speed up requests and approvals. This is because you can complete the procedure from anywhere using just your smartphone.

Expense requests require internal back-and-forth, and are often disrupted by delays in submission and approval. It was necessary to scrutinize whether the content of the application met the company’s regulations, and the work was complicated and time-consuming.

By introducing an expense management app, you can apply and approve without going to work. There is a function to display a message by notification when there is an application for expenses, and it is possible to prevent oversight of approval work.

The expense management app will eliminate requests that do not meet the company’s regulations, so the work efficiency of the accounting staff will also improve.

2-6. Prevent fraudulent applications and mistakes

The advantage of the expense management app is that it can prevent fraudulent applications and mistakes.

It often takes a long time to check the expense application form because there is a risk of expense entry errors or fraudulent billing of transportation expenses.

If you install an expense management app, you can automatically enter expenses by taking a photo. By linking with an IC card, the amount is automatically reflected, and it is also effective in preventing the risk of transportation expense input errors and fraudulent billing.

2-7. Ability to respond to legal revisions

Expense management apps can respond to future legal revisions. It will automatically update the function according to the revision of the law .

We can respond smoothly to legal revisions and manage expenses with peace of mind.

3. Disadvantages of expense management apps

Expense management apps not only have advantages, but also have the following disadvantages.

1. Concern about security remains
2. Receipts and IC cards may not be read accurately

Each is explained in detail below.

3-1. Security concerns remain

Some expense management apps have security concerns.

For example, there are cases where countermeasures against unauthorized access from the outside and backup support are insufficient.

Therefore, when considering an expense management app, be sure to check the security measures as well.

3-2.Receipts and IC cards may not be read accurately

Depending on the expense management app, the accuracy of reading receipts and IC cards may be low.

If the accuracy is low, receipts with creases or faint print cannot be read . If manual input is required, it is easier to input on a computer than on a smartphone, so there is a possibility that the application will not be used.

There are expense management apps that allow you to use data entry services, so it’s a good idea to check in advance if necessary.

4. Points to note when introducing an expense management app

There are two things to keep in mind when introducing an expense management app:

1. inform employees
2. Take measures against information leakage

Each is explained in detail below.

4-1. Notify employees

When introducing an expense management app, it is necessary to inform all employees . If it is not well known, even if you go out of your way to introduce an expense settlement app, it will not be used, and the introduction cost may be wasted.

Let’s introduce the expense management app after creating an internal manual that matches the expense management app.

When using a smartphone for personal use, it may not be available depending on the smartphone used by the employee. Before introducing an expense management app, it is necessary to understand the model, OS, storage, etc.

4-2. Take measures against information leakage

When introducing an expense management app, take measures to prevent information leakage.

There is a possibility that information may be leaked due to the use of a personally managed smartphone or use while out of the office .

Let’s introduce an expense management app after creating internal rules in advance.

5. Use an expense management app to streamline expense management

In this article, we introduced the advantages and disadvantages of expense management apps, as well as points to note when introducing them.

By introducing an expense management app that matches your company’s expenses, you can streamline expense management and reduce the burden on your employees. Being able to focus on other tasks is a big plus.

There is also an expense management app that you can try for free, so if you are considering introducing it, why not try it first?