One、Source of Demands
1、Industry background
Expense management includes budget management 、cost of processing and accounting management. Budget management is an important part of cost control in financial management operations ,the core content of cost management ; The cost of auditing, accounting and management is an internal (cost of managing internal data flow) and external (with the procurement, inventory, workshop, etc. ) closely linked system.Therefore , the expense management , similar to overall business management,must be carefully established a scientific system of complete specifications, to obtain the economic benefits, management efficiency 、cost management due to the effectiveness of playing.
2、Problem analysis
As to the expense the enterprise everyday operations take, its vision is to be able to predict 、control in the course 、master tracking and analysis management.
But as so often ,in the course of enterprise's everyday expense management , frequently faced with many problems. To those problems , the enterprise itself don't know too much. As the following :
The company's annual budget? execution progress? the difference?
How to specify the proportion of annual revenue and the cost estimates ?
Which department (or staff) occupies the largest budget implementation? What's the performance evaluation based on ?
How long does the employee expense reimbursement take ? What's the leadership approval based on ? Racking their brains? What's their feeling ?
What's the basis for annual budget ?
How to retrive large payment multi-level approval processes ?
How to process remote reimbursement application ?
How to exchange financial management from of accounting-based to of management ?
3、Currently basic management
Aimed at enterprise on budgeting and cost management, mainly described as the following:
Budget management remains in the stage of manual input Excel reports, not convenient for the whole company management and department management
Employees form in reimbursement form manually , submitted to the finance department after multi-stage approval. At last , finance personnel manually records the voucher
Budget and expense reimbursement basically has no association (or difficulty in association) with each other , moreover , cost control lacks of management
In the course of employee expense reimbursement , often , is in awaiting approval status , long cycle, low efficiency, and employee's satisfaction is not high
Too large workload for financial staff's manually recording expenses to be effective in financial management
Leadship decision analysis is very difficult to extract from the system to the data in a timely manner,affecting company's annual budget and actual monitoring
Two、Solutions
1、Analysis
Budget management is mainly involved with budget establishment, adjustment and execution , as well as the final track report form. Because the traditional manual way budget's establishment is carries on the EXCEL document, therefore , it causes coming apart in the out-of-pocket cost management process and the budget , can only through telephone regarding the expense user to inquire that the finance the way confirmed also has the budget available, has wasted the massive time and the manpower; But to final budget implementation track time, all department's budget service condition also can only learn through the inquiry finance. Along with company size's unceasing expansion, the traditional handwork's budget drafting and the expense management way already doesn't adapt to company's development.
As to cost management which mainly consists of personal expenses, department-level costs and company-level costs. Personal expenses is related to the relevant mobile phone fees, travel expenses (entertainment expenses, taxi fares, accommodation expenses, etc.) and other costs, while sector departments is involved with procurement costs and other expenses.The company-level costs includes capital expenditures, such as fixed assets purchasing, leasing costs, expenses and other special operations. From the whole point of cost management, these three costs are closely involved with budget. However , many enterprises don't truly relate them , that is , no management into a complete system. Therefore , the financial department exists positive big waste of manpower in expense cost.
Therefore, if the enterprise can build an expense approval management system based on workflow platform , simultaneously , containing budget management system. In other words , it can change the beforehand traditional analysis management pattern that after the expense occurs , the finance makes the certificate time only then deducts the budget time , realizing truly applying new budget achievements management pattern which in anticipation, in the matter controlled, and could safeguard the expense reasonably, correct and comprehensive management, enabling enterprise with various aspects the cost to compress as far as possible, but could also guarantee the entire enterprise's normal work.
2、Solutions
This solution is established in managing above the platform based on the web system and the enterprise expense management (including budget) system solution based on workflow management platform. Through this advanced solution, it helps enterprise's all expenses systematized, management of flow process, thus , on basic realizing the enhancement working efficiency, the optimized expense examination links and strengthening the expense (including budget) to manage and such goals.
The expense produced in the course of the enterprise daily management can be managed in this system. This system provides budget locking functions, safeguarding flows' expenses in the examination can be able to occur normally, and supply examination information immediately for the policy-maker. Meanwhile , before the expense occurs , it may carry on the multistage work class examination through the expense application, and starts to deduct the budget, changing the beforehand tradition after the expense occurs the finance , making the certificate time only then deducts the budget to analyze the management pattern afterwards, realizing before truly settles, applies for the new budget achievements management pattern , which, in the matter controls, was not only provided with the full reasonable management basis for the business budget management, moreover , passed the new budget management pattern has introduced the responsibility center concept for each department, causing the line managers to be possible momentarily to control.
(1)Main system platform：LiveFlow workflow platform
(The detailed LiveFlow product information, please refer to other additional information)
(2)Application: All costs and budget management of the company
(3)System's core functions
Budget management
Budgeting：New budget(According to the category of annual + sector + cost category, etc.)
Budget adjustment: “increase” + “delete” + “cancel” the budget (historic records reserved)
Budget analysis: Multi-condition query budget implementation tracking report
Cost management
Cost application: All necessary expenses will need to apply in advance. Costs before they occur in the work flow through the application, so the cost rationalization, namely reduction in the budget, after the cost of reimbursement, in addition to offset against borrowing one, the direct deduction of the budget.
The expense reimburses: Regarding the expense which occurs actually carries on reimburses the examination. The expense reimburses carry on the form according to the enterprise actual situation from the definition, the expense reimburses may flush only loans and carries on the budget deducting, carries on the comprehensive budgetary control, the system gives corresponding automatically the prompt, like ultra budget prompt; In the multistage examinations, each examination node the automatic transmission mail carries on the reminder to the corresponding examination leadership, examines and approves the human also to be possible to carry on the authorization, for instance may assign in some peculiar circumstances the examination jurisdiction for another person (i.e. proxy), let another person carry on a generation of examination, certainly may also the reclamation proxy momentarily be authorized. In essential node for example:After approvals, financial recipients can be continued. Claims on the applicant or people to mail reminders, reimbursement of costs associated with the applicant or one can monitor in real time to their reimbursement process, approval and status.
Cost management
Foreign large-value payment management: Before using, you need to define different types of cost items, and personalized documents on the field, procurement, large expenses, rental expenses, periodic expenses such as can be managed in the system, business daily expenditures in the expenditure of assets, lease expenditures, special operating expenses, general operating expenses, special expenditures, advertising expenditures, to support large scale marketing activities belong to the external large expenses, and also can be used to rationalize the management of the system.
Fixed asset purchase management: When enterprise purchases fixed asset, it may carry on the control through the multistage examinations, reducing the property to take or be in the idle. It largely enhances enterprise's property and the fund utilization ratio.
3、Overall value
Keep track of the company at all levels of management (department) : annual budget implementation rate , progress of the implementation, diversity reasons etc.
Historical data analysis and comparison, over the same period resulted in a more rational budgeting;
Reduces the reimburses needed time of the budget application and expense in large scale ,such as submission, examination, processing, payment , as well as the report analysis , saves the manpower, the physical resource cost etc.
Leadership approval are on record, with no impression of racking our brains;
Large expenditures can be realized through multi-level approval processes, control of budget execution progress at any time;
Remote expense reimbursement realized , solutions for the travel costs of staff and management of field offices;
Real-time generation for the implementation of the role and position based on the estimated costs of implementation schedules, and so on. In time for senior management providing basis for decision making;
Reduce duplication of financial, shift from accounting-based finance to management-based finance;
To establish a main core business development, budget management tool for the control of the management system;
Transforms the traditional financial budget for the Business agency which may carry out truly budgets;
All departments (staffs) in the budget implementation process's question may be under the control of promptly, and carry on the department based on this data (staff) the achievements appraisal;
Strengthened the budget and financial discipline, the use of reasonable and effective management procedures to develop and implement reimbursement policies, truly a financial supervision and management functions;
Solved the relevant provisions raised by SOX Act issues and improved enterprise internal control.