Overcoming the Challenges of Expense Management for Remote Teams

Economic volatility, inflation, labor shortages, and cybersecurity threats are the top challenges small businesses (SMBs) face this year, according to the EUD International Foundation. Combined, these challenges can take a toll on SMBs’ revenue, costs, and profitability.

That’s why it’s crucial for small business owners to safeguard their bottom line and closely track every dollar spent. However, managing expenses efficiently—especially across remote teams—can be daunting. Every expenditure must align with their company’s objectives and contribute to its growth.

3 Key challenges remote SMBs must overcome for expense management success

The rise of remote work has revolutionized how all businesses operate. However, it has also introduced new challenges, particularly in expense management. With teams scattered across different locations, tracking spending becomes a logistical nightmare—especially for those still relying on analog systems, paper receipts, and manual expense tracking

Challenge #1: Lack of visibility into employee spending

One of the biggest hurdles small businesses face in expense management is the need for more visibility into employee spending. When employees use their personal accounts to cover business expenses, tracking and reconciling them becomes a huge burden. Without physical oversight, it becomes even harder to track where money is going and to enforce spending policies.

Allowing employees to do individual expense management using their personal accounts creates confusion and opens the door to errors and discrepancies in expense reporting. Reconciling these expenses can consume valuable time and resources without a standardized process.

Challenge #2: Complexity in remote approval processes

Small businesses with remote work setups may find managing approvals for expenses even more complex. Different time zones, communication barriers, and varying approval hierarchies can slow down the process and lead to delays in reimbursing employees or paying vendors.

While providing employees with corporate cards may seem like a solution—without clear expense policies—it can lead to misuse and overspending. However, with proper guidelines, procedures, and automated expense tracking, it’s easier for employees to stay within budget and avoid making unauthorized purchases.

Challenge #3: Increased risk of fraud and errors

Remote environments can be more susceptible to fraudulent activities or errors in expense reporting. Without face-to-face interactions, it’s easier for individuals to manipulate expense claims or make mistakes that go unnoticed until later stages of reconciliation.

In traditional office settings, there’s typically more oversight and accountability regarding expense management. Managers can physically verify receipts, observe spending behaviors, and detect any discrepancies or irregularities.

3 Practical solutions SMBs can take to streamline expense management

In today’s fast-paced business landscape, effective expense management is no longer a luxury—it’s a necessity. For small businesses looking to safeguard their bottom line and thrive in an increasingly competitive market, embracing modern expense management solutions is the key to success.

Solution #1: Leverage a modern expense management solution

By implementing a modern expense management solution, small business owners can say goodbye to cumbersome spreadsheets and manual expense reports and hello to streamlined and effortless expense tracking. By setting spending limits, establishing approval workflows, and enforcing expense policies, SMBs are always in control of their company-wide spending.

Leveraging an expense management solution also gives small business owners greater visibility into their company’s spending patterns. Relying on robust reporting tools, SMBs can identify trends, spot anomalies, and make informed decisions to optimize their budget.

Solution #2: Implement built-in expense policies

By establishing clear and accessible expense policies tailored to meet the needs of remote team members, small business owners can better control allowable expenses, reimbursement procedures, and spending limits.

Ensuring that these guidelines are readily available can help remote employees adhere to company standards. Unlike traditional corporate cards, modern expense management solutions have built-in expense policies. These policies can be customized to align with your company’s spending guidelines, ensuring that every purchase is compliant and accountable.

Solution #3: Provide physical and virtual charge cards

One solution gaining popularity among small businesses is using physical and virtual charge cards. These cards enable controlled and trackable spending, greater visibility and oversight, and eliminate the need for reimbursement.

Virtual cards, in particular, offer a convenient way to manage online purchases while reducing the risk of fraud. Employees can securely make online transactions with virtual cards without exposing sensitive financial information. For businesses that require physical cards, many expense management platforms offer the flexibility to ship cards directly to employees, regardless of location.

How Finfare’s modern expense management solution can help

At Finfare, we understand the unique challenges remote small businesses face regarding expense management. That’s why we’ve developed a comprehensive expense management solution for small and medium-sized businesses.

By leveraging Finfare’s expense management platform, SMBs can automate repetitive tasks, control employee spending, and free up valuable time and resources to focus on growing their business.

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