Gone are the days when real estate agencies relied on paper processes and spreadsheets to manage expenses. Today, most of them have switched to expense management software to streamline workflow and improve productivity.
Are you wondering if you should make a move too? Do you need more information to make your decision?
In this blog, we will explore the top benefits of expense management software. We will provide you with accurate data so that you can make an informed decision for your business.
So, let’s start with the most important advantage of using a digital solution to manage your expenses.
Real-time visibility into financial position
You are bound to meet difficulties if you track all your expenses manually. The challenges grow as you manage more properties, tenants, and employees.
The situation comes to a point where you lose visibility into your company spending. As a result, you also lose control over your budget and end up making inaccurate forecasts.
Expense management software can provide real-time visibility into your real estate expenses. You will be able to track expenses as they happen, complete with all information like payer name, amount, time, and more.
Therefore, you can stay updated on every cent that leaves your business.
According to Gartner, real-time visibility enables entrepreneurs to manage risks better. They can also predict disruptions and save up to 20% of costs.
Best of all, you can gain complete control over your spending.
High-quality financial data for accurate predictions
Inaccurate financial data can take a toll on your bottom line. Additionally, they can end up in your reporting and create a false picture of your financial position.
For example, you can report more profit than actual if your employees miss out on entering some expenses. As a result, you will now have to pay more taxes while filing your returns.
On the other hand, your business will look less valuable if you underestimate your profit.
An expense management tool can come to the rescue and improve data accuracy. It can help real estate agencies eliminate human errors and duplicate entries.
In addition, you can verify and cross-check data seamlessly. Therefore, your organization can aim for transparency and establish accountability for each expense.
Ultimately, you will be able to make accurate forecasts for more success.
Improved operational efficiency
COVID-19 had a detrimental effect on most industries, including real estate. The world around, commercial spaces close down as governments announced months of lockdown. Returns from properties also began to decline, putting entrepreneurs under stress.
According to McKinsey, the unutilized enterprise value of real estate dipped by 25% in most sectors. In the case of lodging, it went down by 37%.
As a result, real estate businesses are searching for ways to boost operational efficiency. They are looking to cut costs and optimize expenses to derive the most value.
Expense management software can go a long way to improve your operational efficiency and reduce costs. You can track every expense and find out whether it’s justified or brings returns.
Additionally, you can automate processes and improve efficiency. You can also reduce your payment cycles and avoid paying late fees.
In the process, you may even improve your revenues by 20% to 30%.
Conserve resources, money and time
Real estate businesses spend endless hours on manual data entry and reconciliation. They also need days to approve expenses, collect receipts, and create reports that still contain errors.
Additionally, you also need to pay wages for the time given by your employees.
An Expense management solution can help entrepreneurs save time, resources and money in multiple ways. The top contributor is automation that can help organizations save $16 trillion in annual salaries.
You can automate your data entry, receipt collection, and even reconciliations. Additionally, you can create reports with a few clicks and get to the bottom of every transaction in seconds.
According to research, 54% of the workforce believes they can conserve 240 hours every year through automation. Additionally, you can also save the wages you would otherwise pay for those hours.
Moreover, real estate agencies can automate approvals with expense management software. They can also speed up reimbursements and pay your vendors on time.
Best of all, you can use your free time to grow your business and boost productivity.
Generate valuable insights
Expense management software provides real-time visibility and control over your expenses. Additionally, you get a host of reports and analytics to make out your financial position.
Entrepreneurs can use the data to spot trends and patterns in their business spending. They can drive actionable insights and optimize spending to generate more value.
For example, your software can help you zero in on expenses that are no longer necessary. You might find you are paying for a service that you don’t use anymore.
Therefore, you can take action and reduce your spending or choose another service.
In addition, you can integrate your expense management software with your accounting solution. The process will help you streamline processes further and simplify reconciliation.
You can also get ready information when you want to close your books or maintain your accounts.
Implement your expense management software with KriyaGo
Real estate agencies need to work with a solid partner to set up and implement expense management solutions. KriyaGo works with reputed software vendors to offer entrepreneurs the best experience.
We can help you get started with leading products like SAP Concur, Yardi, or Procore. Our team can also provide expertise, train your team, and help automate your business processes.
Get in touch with us today to tell us your requirements. You can also contact us for a free consultation of 1 hour to discuss your needs.
Final thoughts
Expense management software is the need of the hour for real estate agencies. The solution can help them save time, cut costs, and improve operational efficiency. They can also improve data accuracy, remove duplicates, and automate most processes to boost productivity. Additionally, a digital tool can provide complete visibility into expenses and help optimize business spending.
