Expense management plays a pivotal role in letting companies know where employees are spending money and how the company can do a better job in managing costs. Imagine, having to generate and assimilate all this data manually? Right from keeping a track of paper receipt, to making expense reports to policy checks, the process is troublesome and the paperwork just keeps increasing. According to a study by Paystream, an average of $27 goes into making an expense report manually. Wouldn’t it be so much better if companies could reduce this cost to, say $7? With the help of technology, one can track expenses and make expense reports with just the click of a button. These automated expense management tools not only reduce processing costs but also help keeping track of spends easier for employees, managers and finance teams.
Artificial intelligence offers organisations a way to avoid the manual expense management conundrum. It isn’t just the ease with which it creates and records expenditures and expense reports that makes these systems so great, it also understands approval workflows, prevents reimbursement fraud and derives and analyzes expense data for companies to use in budgeting. AI ultimately restructures and fully automates the expense reporting and tracking procedures.
What does AI do in an expense management tool?
It lets you throw away your paper receipts!
Machine learning is a type of AI that enables systems to learn without being programmed to do so. With electronic receipts gaining popularity, machine learning modules enhance expense management softwares to incorporate ways of recording expenses through email inboxes. Even with paper receipts, AI algorithms helps automatically extract relevant information with just a picture of the receipt. Optical character recognition helps convert the printed text on bills into machine encoded text and stores it as data. This way users don’t have to even take a minute to enter all the required information. The software extracts it on its own. Businesses using these model usually have a competitive advantage over the others. Not only does it allow employees to report expenses in a jiffy but also centralizes all kinds of expenses under one platform.
Violated policies? What’s that?
Rather than having your accountants and managers manually check for policy violations, AI helps flags suspicious expenses and allows management teams to address them in real time. The AI engine even asks for clarifications of policy-violated expense and ensures approver mediation is kept to the minimum. Only when justifications are insufficient, the system sought approver inputs and expense is then processed or rejected by him/her. The software goes through every expense with a fine tooth comb and in seconds can generate an expense report with accurate amounts and absolutely no expenses that cannot be claimed. Employees do not have to time out of their busy schedules to make elaborate spreadsheets and accountants can receive uniformly formatted expense reports with absolutely no errors. The AI engine can even analyse spends and attributes to detect patterns and anomalies in expense reports, giving companies precise information and leaving them with new ways to cut costs.
Let the numbers do the talking
We are entering the era of big data and AI would be nothing without it. As expenses are being filed, the AI engine stores the data as historical claims under very large data sets which is otherwise known as big data. This very large amounts of transactional data is analyzed by the system to reveal trends and patterns. In fact, with more and more data recorded, the system becomes that much more efficient. The machine learning algorithms recognise patterns and numbers, formulates expense analytical reports and give companies better visibility and control of business spends. Companies can completely ditch the manual formulation of expense analytics. These reports help in opening up new pathways to reducing costs, and organisations can then set clear priorities to achieve business and financial goals.
Artificial intelligence has not only automated expense management but also gives employees more time to focus on core activities. Fyle’s user friendly smartphone app helps in wrapping up expenses with the click of one button and has made expense reporting more flexible and mobile. It aims to increase compliance rates with automated policy checks and audit trails and companies now have the chance to weed out non-compliant employees. The expense analytics tool allows better savings by giving you a look into various trends and statistics. Capillary Technologies has been able to reimburse employees three to four time a month now thanks to Fyle and we aim to do the same for you.
Computer intelligence is a powerful tool that is constantly making strides to improve and ultimately eliminate the stage of human intervention to supervise and ensure work meets demands. AI is a game changer that is enhancing the self-driving software field and making not only expense management but also other business processes simple and less frustrating. Soon AI is bound to reach every aspect of the business industry and enable companies to work smarter.
Want to see artificial intelligence in action? Get in touch for a demo of Fyle.