Expense management is often a complex process in business, with plenty of paperwork to go along with it. Given that, most HR managers are looking for innovative ways to manage expenses.
Enter technological solutions like a human resources information system, or HRIS. Most HRIS offerings provide many advantages to HR departments and HR professionals, including better payroll and benefits administration.
You might ask if it can help you make managing expenses easier for your team. The answer is a definitive yes. Here’s how.
Streamline Expense Management
The first thing an HRIS does when it comes to helping you manage expenses is streamline the process. With everything in a centralized location, it’s much easier to keep track of receipts, requests, and more.
An HRIS also integrates with other systems in your business, such as payroll and accounts payable. The data collected about expenses can be used to generate reimbursements in the accounts payable system or added to payroll.
This saves time, money, and a fair amount of paperwork and data entry. You no longer need to enter all your information over and over again, transferring it between systems and increasing the chances of an error occurring.
Automate the Process
The other major advantage of an HRIS is the way it can be used to automate the expense process. Your employees can add their receipts and reports, which the HRIS can then extract information from.
Once the information has been entered into the HRIS, it can automatically transfer the relevant information to other systems. In turn, it also conducts the calculations you need to determine reimbursements and more.
This saves both your employees and your HR team time. They no longer need to use calculators and pencils to determine the right amounts for reimbursement, and they don’t have to manually transfer those numbers between systems. The HRIS can handle it all.
This ability to automate the process can help speed up the reimbursement process. It can also streamline the process of employee reporting, by guiding employees to submit their reports and receipts correctly the first time.
Data Collection Powers Insights
An HRIS is also a powerful database for your business. When it comes to expense management, collecting the right information can help you streamline the process and keep expenses within reasonable limits.
An HRIS can show you patterns in expenses. You may notice there are certain times of the year when expense reimbursement trends up. Maybe this is when your salespeople are travelling more or maybe there are more conferences to attend.
You may also be able to see which employees are spending the most, and who is spending the least. From there, you could ask those team members about strategies to reduce their expenditures. How do employees who spend little on their trips manage to keep their costs so low? Share these tips and tricks with the rest of your team.
Another metric you can examine is what expenditures add up the most for your business. Are most of your expenses for flights, or are you paying more for hotel stays? You could examine these factors to determine what reasonable prices are, or to look for strategies to curb expenses. Maybe your team could drive to shows within a certain area instead of flying. Maybe you could adopt a points program for hotel stays to help employees earn and use free nights.
Finally, you can use this information to set reasonable limits and budgets for your team’s expenses. With these limits in place, you can help your team make more economical choices, as well as keep expenses within your budget.
Easy Expense Reporting with an HRIS
Finally, the HRIS makes it easy to draw up reports on expenses. Using the data collected, you can show trends and patterns in expenditures and reimbursements.
With all the power packed into an HRIS, you’ll wonder how you ever managed expenses without it.