Implementing Expensify

Case Study: Implementing Expensify.com for a Company with No Expense Policies Prior

Abstract:

This case study explores NMAAB’s successful implementation of Expensify.com, an expense management software, for a company that had no formal expense policies in place previously. It highlights the challenges faced by the company, the steps taken to implement the solution, and the outcomes achieved through this implementation.

1. Introduction:

The company in focus is a medium-sized technology firm with approximately 20 employees. Prior to implementing Expensify.com, the company had no standardized expense policies, resulting in inconsistent and inefficient expense reporting processes.  The staff expensed a wide variety of lodging levels, for example, above the 3.5 (3) star limit the company eventually instituted.  The company had no related alcohol use policy or a company approved methodology for client related expenses vs staff related expenses especially as it related to travel.. The company recognized the need for an automated solution that could streamline the expense management process and improve compliance.

2. Challenges:

The absence of expense policies presented several challenges for the company, including:

a) Lack of clarity: Employees were unsure about what expenses were eligible for reimbursement and the appropriate documentation required.

b) Personal Expensify accounts: Employees were using their own free Expensify accounts without using Expensify Travel nor were the expenses integrated into the company’s accounting platform..

c) Inefficient approval process: Managers had no visibility into pending expense reports, making it challenging to review and approve them promptly. 

d) Compliance issues: Without clear policies, there was a risk of non-compliance with tax regulations and potential reimbursement disputes.

e) Excessive spend: staff were staying at the Kimpton or Westin type of hotels when they should have been staying at more economical lodging

3. Solution:

To address these challenges, the company decided to implement a company account with Expensify.com, an expense management software that offered a comprehensive suite of features including automated expense tracking, receipt scanning, policy enforcement, and streamlined approval workflows. The company also decided to use Expensify Travel.

The implementation process followed these steps:

a) Assessment and Planning: The company conducted a thorough assessment of its current expense management processes and defined the goals and requirements for the new system. This involved engaging key stakeholders and understanding their pain points.

b) Configuration and Customization: Expensify.com was customized to align with the company's expense policies and specific reporting requirements. This involved setting up expense categories, configuring approval workflows, and defining spending limits.

c) Training and Adoption: Employees were provided with comprehensive training on how to use Expensify.com effectively. This included hands-on sessions, user guides, and access to ongoing support resources.

d) Policy Communication and Enforcement: The company developed clear and concise expense policies that were communicated to all employees. Expensify.com's policy enforcement features were utilized to ensure compliance during the expense reporting process.

e) Integration and Data Migration: Expensify.com was integrated with the company's existing financial systems to automate data transfer and eliminate manual data entry. Historical expense data was migrated to ensure continuity and accessibility.

4. Outcomes and Benefits:

The implementation of Expensify.com resulted in several positive outcomes for the company:

a) Improved Efficiency: The automation of expense reporting processes significantly reduced the time and effort required for employees to submit and manage their expenses. This led to faster reimbursement cycles and increased productivity.  Staff use of Expensify Travel also saved time.

b) Enhanced Visibility and Control: Managers gained real-time visibility into pending expense reports, enabling them to review and approve expenses promptly. The system's policy enforcement features ensured adherence to company expense policies.

c) Better Compliance: The company now had clear expense policies in place, minimizing the risk of non-compliance with tax regulations. The software's built-in checks and balances helped identify any potential compliance issues.

d) Cost Savings: By eliminating excessive spending, the company achieved cost savings. The ability to track and analyze expenses in real-time facilitated better financial planning and budgeting.

e) Scalability: Expensify.com's scalability allowed the company to easily accommodate growth in the future, supporting an expanding workforce and evolving expense management needs.

5. Conclusion:

Implementing Expensify.com for a company with no expense policies prior proved to be a successful initiative. The automated expense management system addressed the company's challenges and brought