How AI Improves Expense Management Systems

In the 1990s, many small businesses felt the internet was just a fad and were slow to adopt it into their daily operations.  A mere 30 years later, it is impossible to imagine running a business without the internet.  While AI has not yet reached the same degree of ubiquity, it should not be treated as a fad that will eventually fall by the wayside. Instead, smart business owners will be on the lookout for ways to use this technology to improve even the most mundane aspects of their operations, including expense management.

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Expense Management Technology: No longer optional

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The current business climate leaves little room for the slow adoption of new technologies. Labor shortages, an increasing number of remote employees, and rising materials costs are forcing managers and business owners to adapt - whether they like it or not. This is especially true regarding financial management systems, as traditional methods of managing finances tend to be time-consuming.

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Implementing a new finance software, such as Outpave, seems daunting enough for some small business owners. And if AI is involved, they may become even more skittish. Here is an explanation of how AI can increase the efficiency of expense management.

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Receipt Capture Made Easy

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Most expense management systems offer a way to capture expense receipts and upload them into the platform.  This reduces the need for collecting and recording receipts and speeds up the end-of-month accounting processes.  With platforms connected to AI, the receipt capture goes a step further. The AI model scans the picture and then searches through the transactions in the system to match the receipt to its correct expense in just a few seconds. AI can also verify that all the information required by the IRS is present on the receipts and flag expenses for non-compliance.

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Close the Books Faster

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Automated expense reconciliation increases the efficiency of end-of-month accounting procedures.  Now instead of spending hours reconciling the books, the accountant can review the connections made by AI and spend their time addressing non-compliance issues. This will significantly reduce the number of man-hours required to keep your books up to date.

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Enforce Policies

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Speaking of non-compliance, AI also flags suspicious expenses that fall outside the realm of your established policies - making it easier than ever for you to make sure your employees are following the rules and not wasting money.  It could also help you identify areas that may technically be within compliance but are unnecessary or overly costly. 

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AI Saves Time and Money

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New technology, such as AI, is often treated as a boogeyman to be avoided. But if used in the right ways it can become an incredible asset to businesses wanting to grow their operations in difficult times. Outpave understands the uncertainty associated with new technology, and we are here to help you implement it in a way that makes sense for your business.

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