Generically, all modern-day expense management systems are driven on the wheels of automation. However, existing systems can start losing velocity when a business realizes its unique needs or expands its operations. That’s the time when business owners would normally realize that it’s time to switch to a new expense management system. But what other situations would call for an upgrade in the existing expense management system? Let’s explore.
1. Your current system is outdated.
- Broadly, an outdated system is one that is not up to par with other systems in the market. Nonetheless, outdated can be seen in many contexts that need not necessarily depend on what other software providers offer.
- One way to look at it is to realize that your existing expense management system doesn’t adhere to the latest security protocols. If this is the case, an upgrade should not be perceived as an option but as a necessity. Inadequate security features can easily lead to sensitive data breaches.
2. Integration with other business systems is poor or non-existent
- In a time when automation is everywhere, a business would be resistant to manual data entry for the task of duplicating information. Thus, an expense management system should be capable of integrating with other systems, like accounting software or ERP systems.
- If your business has found a software solution that works best for your daily tasks but is not integrable with your existing expense management system, it may be worth investing in a new expense management system to save human resources and effort.
3. Customer support is poor or unresponsive
- Expense management systems, especially those that allow complex integrations, may face more issues than a straightforward system with limited integration capabilities.
- Suppose your business has been using a complex expense management system from a provider whose team is very unresponsive to your queries, and this unresponsiveness has led to inefficiencies. In that case, it’s time to look for newer software providers of similar or better caliber.
4. It takes considerable time to get done with a task
- The primary purpose of any electronic system is to simplify tasks. This is applicable to expense management software as well. An efficient expense management software should be able to handle receipts, generate reports, and save input at a reasonable speed.
- For businesses that have recently purchased an expense management system subscription, it could be difficult to let go of software just because of its poor performance speed. However, it’s important to acknowledge that software inefficiency will only become a liability rather than an investment for the business in the long run.
- Additionally, if the software provider often shuts the server down for maintenance, which causes significant operational delays, it may be time to look for alternatives.
5. High costs for maintenance or upgrades of the old system
- Cost is a reason that can prompt your business to switch to a new expense management system, even when the system is working fine.
- If your business has recently suffered financial downturns, cost-cutting may be an obvious strategy that you would want to have in place. Certain expense management software can be more expensive than their counterparts. Thus, when cost-cutting is what you’re aiming for, you should also explore more cost-efficient alternatives for your existing expense management system.
6. The existing system has an unintuitive interface
- Suppose the user experience and interface of your current expense management system are clunky or unintuitive. In that case, your employees may have complained about not being able to navigate the system efficiently or have been taking more time to generate simple reports.
- Unfriendly interfaces can be the reason for inefficiency, which, when compounded, can hinder business growth.
7. Limited customization features
- Data labels and customizations can be the bridge to simplicity and efficiency for certain businesses.
- Consider that your business has just started reaching customers beyond Singapore. Naturally, you’d be dealing with transactions in more currencies than SGD. Labeling transactions related to certain countries can help immensely with sorting, filtering and tracking growth in certain countries.
- Customization and labeling can be difficult to achieve manually if your existing expense management doesn’t do that automatically.
Wrapping Up:
An upgraded solution can unlock greater operational efficiencies, enhanced data insights, tighter policy compliance, and seamless integration across different business functions. By recognizing the telltale signs that your expense management process’s offerings have outgrown your needs, you can make an informed decision to implement a more sophisticated platform.