Expense management Baidu Encyclopedia explains: Expense management is the management of enterprise circulation expenses and is an integral part of enterprise financial management. The task of expense management is to reflect commodity circulation fee expenditures, tap the potential to reduce costs, and improve economic benefits through forecasting, planning, control, accounting, assessment, and analysis.
The basis for expense management is: "Regulations on Cost Management of State-owned Enterprises", "Implementation Rules for Cost Management of State-owned Commercial and Foreign Trade Enterprises", as well as relevant national rules and regulations and expenditure standards for expense expenditures. The forms of management include: plan management, quota management, budget management, branch management, hierarchical management, etc. The specific management of expenses by an enterprise is usually organized from three aspects: (1) The accounting department implements comprehensive management of all expenses and expense levels of the enterprise; according to the division of labor within the enterprise's internal organization, separate responsibilities and hierarchical management are implemented. (2) Adopt different management methods for each expense item according to its different characteristics. Such as fee fixing, quota management, fee lump sum saving commission system, internal fund coupon discount, etc. The enterprise has a chief accountant or a manager who is proficient in management business, and can also implement a management method in which expenditures can only be listed after the chief accountant or manager gives instructions in writing.
Purpose of expense management:
To effectively strengthen the company's expense management, while facilitating financial supervision and control of expenses, and to effectively standardize and reduce the scope and standards of expenses.
Extension:
Comprehensive expense control management system, efficiently empowering the digitalization of enterprise expense management
How to cope with complex environments and achieve steady and sustainable growth of enterprises is It’s a proposition that business managers have to think about now. It has become more and more common knowledge to use "digital intelligence" as the starting point and starting point, and to improve one's ability to resist risks and uncertainties through refined management.
According to survey data from the Shanghai National Accounting Institute, the overall expense rate of A-share listed companies climbed from 20.6% to 26.5% between 2016 and 2020. The high expense rate has almost become a problem faced by companies* **Same dilemma. There are many large state-owned enterprises that have called for the establishment of an expense control system of "budgeting, authorization, expense control, and auditing." Enterprises in real estate, e-commerce, finance and other industries have also strengthened expense control.
Current status and pain points of enterprise expense management:
01? It is difficult to break through the financial function
A large number of transactional bills, document review and accounting work occupy the expense manager’s time Time, there is no way to free energy from all kinds of complicated work;
02? Business and finance are not unified
The final process of the enterprise's internal business system and financial system is not closed loop , business errors are difficult to track;
03? Business processes are not unified
The processes of the parent company or group headquarters and subsidiary subsidiaries are not unified, and the configuration work overlaps, which is not conducive to unified management;
04? Insufficient budget management and control capabilities
Management and control must be done by people, not just the budget, but also various internal controls and audits, which must be done by people, and the review must be strict , it cannot be done manually, the review is loose, and the control is not in place;
05? Insufficient intelligence
Insufficient automation and intelligence of corporate financial processing processes, manual accounting and voucher search It is difficult to improve efficiency when waiting for work;
06? Employee satisfaction is not high
Employees incur many and frequent expenses on work, such as travel, entertainment expenses, etc., from the application The experience in all aspects of , purchasing and reimbursement is poor, and employees complain a lot.
Enterprise consumption and expense digital intelligent management and control platform
In the face of the real needs and pain points of enterprises, it focuses on the budget, application, consumption, management and control of various expenses consumed by enterprises for business purposes. In scenarios such as settlement and analysis, through the aggregation of many suppliers, the establishment of a price comparison platform, the connection with the invoicing platform, and the connection with the internal system of the enterprise, the deep integration of scenarios and expense control is used to empower the full-link digital intelligence of enterprise consumer spending. Management, reshape the new concept of refined management of enterprise expenses, and realize business processization, consumption scenario, procurement centralization and consumption platform.
At the same time, a large number of new technologies such as AI, RPA, and OCR are applied to realize intelligent expense reimbursement and automated financial accounting, effectively alleviating the pain points of long reimbursement processes, low accounting processing efficiency, expense budget overruns, and difficult compliance control, and realizing consumption and The integration of expense control, business and finance, and finance and tax interconnection truly saves employees' worries, empowers finance, and reduces costs and increases efficiency for enterprises.
Highlights of the expense control management solution
01? One-stop enterprise consumption integration
Integrate corporate travel, welfare, conference affairs, office, labor insurance, entertainment, It integrates vacation, centralized purchasing and other consumption scenarios to create a one-stop management platform for corporate consumption and expenses, and one-stop solution to various products and services required for corporate consumption.
02? Full-process expense control
Integrate complete business scenarios such as budget, application, approval, consumption, management and control, reimbursement, settlement, accounting vouchers, input tax deduction, and electronic files in one Integrated to achieve one-stop closed-loop efficient management and control of employee consumption and financial processing.
03? Open supply chain platform
Help enterprises realize a highly independent and open supply chain integration and optimization platform, and provide standard open interfaces so that enterprises can independently and flexibly Suppliers of various categories need to be selected to conduct independent bidding and management of multiple suppliers and service providers.
04? Aggregated price comparison model
Establish a professional one-product, multiple-supply, same-screen aggregation and price comparison mechanism from the bottom, without the need to jump back and forth between multiple platforms, to achieve the smallest granularity of scientific price comparison procurement, and avoid Big data is mature, empowering enterprises to significantly reduce costs.
05? Intelligent financial reimbursement
Extensive use of AI intelligent technologies such as OCR and RPA to systematize, program and intelligentize a large number of repetitive, simple and standardized financial review and accounting work ization, improving employee reimbursement experience and financial processing efficiency by simplifying operations.
06? Refined management and control
Expense Control Cloud embeds the travel management system into the platform, finely sets the standards for various expenses in different consumption scenarios, and supports Free combination of various control plans, the control intensity can be strong or weak, and one person, one thing, one standard can be achieved.
07? Flexible operating model
Innovation introduces the procurement concept of "contracting work but not materials" in the field of decoration, and pioneers the separation model of supply and service. The enterprise can be flexible according to actual needs and capital flow direction Choose light operation, heavy operation or comprehensive operation to ensure the efficient operation of the platform.
08? Humanized experience
Innovative platform experience model, such as flexible standards, self-payment if exceeding the standard, personal savings, personal reasons, benefits to family members and credit reimbursement , promote and attract employees to actively participate in the travel expense control process.
Summary: Under the traditional model, financial processes and transactions are separated. Only after experiencing the wave of centralized reimbursement at the end of the month, the company management knows how much has been spent this month. This kind of "reimbursement" of expenses is done The management method of "afterwards" rather than "beforehand" makes enterprise expense control often superficial and cannot help enterprises reduce costs and increase efficiency to a greater extent. If an enterprise really wants to control expenses well, it needs not just a centralized consumption purchasing platform, nor an after-the-fact reimbursement platform, but a full-process expense control service platform that combines enterprise expenses and operational management requirements.
Reference materials: 1. Baidu Encyclopedia? Expense Management
2. Baijiahao? Expense Management Methods
3. Shengyi Technology? Comprehensive Expense Control Management system to efficiently empower the digitalization of enterprise expense management