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6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 1
AN EBOOK BY:
Stepsto Switch
from spreadsheets to cloud-based expense
management6A comprehensive guide to help you switch from old-school spreadsheets to automated
expense management software
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 2
INTRODUCTION
STEP 1: IDENTIFY THE ISSUES
STEP 2: IDENTIFY YOUR REQUIREMENTS
STEP 3: ASSESS VENDORS
STEP 4: BUILD THE BUSINESS CASE
STEP 5: IMPLEMENT YOUR SOLUTION
STEP 6: ENJOY THE BENEFITS
SUMMARY
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04
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6 Steps to Switch / from spreadsheets to cloud-based expense management
Contents
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 3
From Old-School to AutomatedManually tracking and managing expenses can be incredibly costly, yet the exact costs are often hidden.
First, manual processes take too much time. Expense reporting tasks you know all too well—creating spreadsheet formulas, consolidating piles of receipts, and the extensive reconciliation process—consume resources in a way that doesn’t appear on the company ledger. But as the saying goes, time is money.
Manual processes also limit insight into, and control of, your company’s expense spend. Many companies are adopting automation to better manage expense policy compliance and identify other opportunities for savings.
OK, so automated expense management saves time and money, in many different ways. But just what do we mean when we say “manual?” The checklist below illustrates different aspects of a manual expense management system. Use it to see how manual your company’s process really is:
Manual Expense Management
Companies using a cloud-based expense
system are able to lower their processing
costs by 83%
EMPLOYEE☐ Creating expense reports using spreadsheets☐ Printing out the expense reports☐ Stapling/taping receipts to the report☐ Matching the expense lines to the credit card charges☐ Sending the expense report to your manager for approval
MANAgER☐ Waiting for an expense report to be submitted on time☐ Reviewing each expense line to ensure T&E policy compliance☐ Matching the attached receipts to each expense line☐ Sending the expense report to another approver, or submitting to accounting for reimbursement
ACCOUNTANT☐ Waiting for an expense report to be submitted on time ☐ Reviewing each expense line to ensure T&E policy compliance☐ Matching the attached receipts to each expense line☐ Reconciling the expenses to the appropriate budget
Introduction
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 4
Identify the Issues
1Step
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 5
Identify the Issues The first step in fixing a problem is knowing what the problem is. Use this worksheet to identify the pain points in your company’s current expense management system. Uncovering the hidden costs of your manual process will allow for a clearer assessment of the need to change. Which of these areas could be improved to lower costs and increase efficiencies?
DOES YOUR COMPANY SPEND TOO MUCH TIME ON EXPENSE REPORTS?
Consider these time-consuming tasks: ☐ Getting staff to submit reports ☐ Staff time to create, submit ☐ Manager review, accountant review ☐ Expense report approval ☐ Reconciling expenses ☐ Processing for reimbursement ☐ Other
46% of companies identify the top expense management pain point as employee failure to submit reports on time.
DOES YOUR ORgANIZATION HAVE POLICY COMPLIANCE ISSUES?
Consider these issues: ☐ Manual data entry errors ☐ Duplicate expenses ☐ Fraudulent expenses ☐ Lack of policy awareness ☐ Other
Fraudulent employee spending cost companies $3.5 trillion dollars in 2013, according to the Association of Certified Fraud Examiner’s 2013 Report.
WHAT ARE YOUR HARD COSTS FOR EXPENSE MANAgEMENT?
Consider these items: ☐ Office supplies (paper, ink, staples, etc.) ☐ Storage space to file past expense reports ☐ Overnight postage costs ☐ Other
Creating and processing a single expense report manually costs an average of $41.12, versus $7.17 with an automated expense system, according to Aberdeen Group.
ARE EMPLOYEES EXPERIENCINg TIMELY REIMBURSEMENTS?
Employees are reimbursed within: ☐ 30 to 60 days ☐ 15 to 30 days ☐ 0 to 14 days
45% of those using a cloud-based expense system experienced faster employee reimbursements.
1Step
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 6
Identify your Requirements
2Step
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 7
2Step
FORM A PROJECT gROUP WITH MEMBERS FROM kEY DEPARTMENTS. FOR EXAMPLE:
Information Technology
Accounting and/or Finance
Human Resources
Sales
Marketing
CREATE A LIST OF REQUIREMENTS BASED ON THE PROJECT TEAM’S NEEDS. FOR EXAMPLE:
Expense report automation
Mobile capabilities
Travel policy enforcement
Integration with current business software
On-demand reporting and analytics
Ongoing software support for all users
Integrated travel booking solution
Multiple language/currency capabilities
53% of companies named mobile capabilities (mobile
receipt capture/mobile expense report creation) as the number one must have feature
when selecting an expense management vendor
Identify requirements Identify your company’s specific requirements of an expense management system, based on the issues defined in Step 1. Which users use the software on a daily, weekly or monthly basis? What would your company need to alleviate expense management pain points? Form a project group of potential users and narrow down your software requirements.
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 8
AssessVendors
3Step
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 9
3Step
Read reviews to narrow your vendor poolWhen researching vendors, match each product feature to your defined list of requirements from Step 2. Crowd-sourcing business software review sites are a good place to start, such as G2 Crowd or Capterra. Real reviews by real people will give you the user’s perspective of each vendor.
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 10
3Step
H&R BLOCk: Vendor Assessment ProcessWhen beginning the selection process, H&R Block defined specific requirements of an online expense management vendor, making sure all departments were on the same page. Their requirements included:
SCALABILITY
MOBILE TECHNOLOgY
EASE OF USE
Focusing on these specific needs, H&R Block narrowed down the final three vendors and put them to the literal test: a conference room pilot. According to Tim Harrison, Director for Corporate Systems, their unconventional—but effective—vendor selection process was as follows:
We let the users of the system—the power users, the admins, the people that really have a stake in this and use the system from day to day—they are going to select the system…At the end of the day, they cast their vote: 9 out of 10 users selected Certify as their vendor. To us, that really spoke highly about the product and the end user experience.”
TIP: When selecting a business software, let the managers narrow
the vendors and let the users make the decision. User satisfaction and
adoption rates will be much higher.
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 11
Build theBusiness Case
4Step
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 12
4Step
Build the Business CaseOK, so you have followed a great process and identified a solution provider that works best for your company. Now it’s time to build a business case for implementing a solution, so that you can advocate for the proposed solution within your company. Here is a guide to the most common savings for companies who switch to a cloud-based expense management system:
REDUCE LABOR HOURS
Eliminate data entry
Less time on expense analysis for accountants
Reduce time for employees to create expense reports
No more tracking down employees for reports
Employees creating expense reports
Managers tracking down employees
REAL PEOPLE, REAL SAVINgS: “It probably takes me one-third the time to do expense reports now. I’m spending maybe a couple hours a week versus six hours.” —Jeannie Hagmeier, Senior Accounts Payable Specialist, iCAD Inc.
SAVE MONEY ON THESE OFFICE SUPPLIES
Printer paper and ink cartridges
Envelopes and mailing labels
Staples, paper clips
Storage space for past expense reports
REAL PEOPLE, REAL SAVINgS: “With Certify, we are saving over $40,000 annually in just time, paper and office supplies alone,” said Joyce Taylor, Accounting Manager of Pitney Bowes.
FACT: Creating and processing a single expense
report manually costs an average of $41.12, versus $7.17 with an automated
expense system, according to Aberdeen Group.
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 13
4Step
Build the Business Case (cont.)
ELIMINATE THESE POSTAgE COSTS
Employees mailing reports to managers
Managers overnighting reports to accountants
REAL PEOPLE, REAL SAVINgS: PhMIC is reducing paper usage by 4,800 to 6,000 pages per year, and cutting approximately $1,944 in postage each year as employees no longer need to mail in reports, according to Terri Tweedy of PhMIC.
IMPROVED EXPENSE POLICY COMPLIANCE
No duplicate expenses
System flags out-of-compliance items
Analytics provide overview of compliance trends
REAL PEOPLE, REAL BENEFITS: “Moving to Certify, we are seeing an annual savings of over $40,000 from avoiding the payment of duplicate and out of policy items,” Eric Newman, Corporate Controller of Saddle Creek Logistics Services.
FACT: Companies using a manual expense management process
have a 36% rate of compliance to corporate travel policies, versus a 91% compliance rate of those
using an automated expense management system. - 2014
Travel & Expense Management Guide; Aberdeen Group
REMEMBER
Happy Employees: Don’t forget, reducing the headaches around expense reports boosts morale! Employees enjoy faster expense reimbursements as well as having more time to focus on day-to-day priorities.
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 14
4Step
Build the Business Case
Cloud-based vs. on-premise software IMPROVE EMPLOYEE PRODUCTIVITY:
Employees can easily access documents, policies, software and emails when working remotely.
REDUCE UPFRONT COSTS:
A cloud-based subscription model allows businesses to easily increase or decrease their use of software services according to their needs, and stays constantly updated.
BOOST COLLABORATION AND COMMUNICATION:
There is much more visibility into cloud-based reporting and analytics. Employees, managers, and accountants can all stay on the same page when it comes to expense management.
kEEP INFORMATION SECURE:
With multiple levels of security, all information is backed up and stored securely, so in the unfortunate event of data loss, all your company’s information remains intact.
SEAMLESSLY INTEgRATE USERS:
Using the cloud is very straightforward—there’s no need to install new hardware. Especially with software solutions that provide full customer support, integrating a cloud-based software is often a seamless transition.
ACCESS ANYTIME, ANYWHERE:
Cloud-based software allows employees, managers, and accountants to access their information via smartphone, tablet, or computer.
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 15
ImplementYour Solution
5Step
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 16
Implementation 101Once you’ve selected an expense management vendor, work with your implementation manager or support team to configure the solution to your company’s needs. You may have specific systems to integrate, such as ACH reimbursments (direct deposit), existing accounting software, corporate credit card feeds, CRM platforms or other corporate programs.
5Step
H&R BLOCk: The Implementation Process IMPLEMENTATION DETAILS: 100,000+ users in North America
CUSTOM INTEgRATIONS: Corporate credit cards, HRIS feed for employees and departments, single sign on capabilities, fees for accounts payable
“Your implementation manager is the person who’s going to be there from beginning to end of the project. From Certify’s standpoint, we really relied on their expertise to help drive the process.
Picking the right partner, picking the right implementation manager, and not forgetting about change management—it’s a critical piece. The technology is amazing but if you don’t have the other pieces in place, it will make the implementation, and ultimately the adoption, more difficult.” —Tim Harrison, Director of Corporate Systems
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 17
Enjoy theBenefits
6Step
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 18
Enjoy the BenefitsFollowing implementation, you’ll find there are countless benefits of cloud-based expense management. Here are just a few of the benefits experienced by companies just like yours...
6Step
54%of companies decreased
or eliminated manual data entry by using a web-based expense
75%of small businesses
experienced 100% ROI in one year or less
72%of companies
experienced an ROI in less than two years
83%Companies using a cloud-
based expense system are able to lower their
processing costs by 83%
45%Holland & Company saved
its accounting department 6 hours per month, reducing
processing time by 45%
50%VitaPlus cut its entire
expense management budget by 50% using
Certify
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 19
6Step
Benefits by Role EMPLOYEE
Mobile technology provides on-the-go flexibility and faster processing
Paperless system eliminates the hassle of printing, stapling, and mailing
Gain insight into expense report lifecycle, from creation to approval
MANAgER
Increased compliance rates
Employees submit expense reports on time
Paperless process eliminates the hassle of printing and mailing
Increased insight into spend and expense report lifecycle
ACCOUNTANT
Automated process eliminates manual reconciliation
Less time spent auditing and reviewing expense reports
Increased insight into spend and access to full analytics suite
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 20
6Step
H&R BLOCk: The Immediate Benefits REDUCTION IN PROCESS LIFECYCLEExpense report process lifecycle reduced from 54 days in PeopleSoft to 15 days in Certify
FASTER AUDITINg PROCESSAccountants are able to review 100 expense reports in one hour, compared to 4+ hours previously
MOBILE CAPABILITIES SAVE TIMEUsers significantly reduced time spent creating and submitting expense reports
DIgITAL INITIATIVEPaperless system eliminated 4,000 pieces of paper in the first month of use alone
AUTOMATIC RECONCILIATIONAutomated technology eliminated manual reconciliation of expenses and receipts
INCREASE IN POLICY COMPLIANCEProvided insights into automobile mileage via mapping and route functionality
STANDARDIZATIONCreated single, global platform with single sign on (SSO) capabilities for web and mobile users
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 21
SummarySwitching from a manual expense management process to an automated one doesn’t need to be overwhelming. With strategic planning, a streamlined approach, and engagement of client stakeholders, you’re bound to see an immediate ROI not only in overall costs, but also in high adoption rates.
Visitwww.certify.com
to learn more or request a demo.
WHERE TO gO FROM HERE
Learn More About CertifyVisit www.certify.com to learn more or request a demo.
Estimate Your Return on Investment Switching from a manual process to a cloud-based software?Talk to a product specialist to identify your potential ROI.
RECOMMENDED SOFTWARE REVIEW WEBSITES To read business software reviews and research expense management vendors, visit G2 Crowd and/or Capterra.
RESOURCES
Dwyer, Christopher J. “T&E Expense Management: A Solution Selection Guide” August 2012 Online <PDF>
Certify, Inc. “ROI of Electronic Expense Management” Online <Infographic>
IMA: Inside Talk “New Technologies and Best Practices in Expense Management: Insights to Drive Growth” October 2014 Online <Webinar>
6 STEPS TO SWITCH FROM SPREADSHEETS TO CLOUD-BASED EXPENSE MANAGEMENT 22
If you’d like to learn more about how Certify can help organize and manage your current expense management process, visit our website at www.Certify.com.
CERTIFY SUPPORTPhone: 888-925-0510Email: [email protected]
CERTIFY SALESPhone: 888-925-0510Email: [email protected]
COMPANY HEADQUARTERS20 York Street, Portland, ME 04101Phone: 207-773-6100