The quintessential key to analysis in terms of the lines that make up an expense report is the category or type of expense. Ensuring that this information is included enables the data to be analysed in an aggregated way.
The common analytical point in terms of expense report is the data related to the category of expenses generated. Each company defines this classification based on its needs and granularity requirements. As such, an organization may decide to break down travel expenses into very specific classification or group them together in a single category. The requirements in terms of analysis must be determined before setting the system of categorization.
Establishing classifications would be no use at all unless proper entry is monitored.
However, implementing this system of categorization will be no use unless it is ensured that the employees have a good understanding of which option they should select in each case. Particularly in situations in which a broad classification is used, it is crucial that these criteria are made extremely clear for expense reporters. Otherwise the information will be adulterated.
This data is fundamental for enabling hidden expenses to be detected and regulated, in order to achieve the corresponding saving. It also enables trends to be identified in relation to expenses that allow the pinpointing of common suppliers, for instance, and starting business conscious of the volume of business that our company provides them with.
Having each item on the expense report classified, enables blocks of expenses to be analysed. An in-depth analysis of this data enables trends and evolutions to be identified and ultimately provides information that allows savings to be made. The result of a block analysis may provide information on regular suppliers and, in turn, give data that is crucial for negotiating effectively with them.
Analysis blocks of expenses reveals useful information in terms of trends and the evolution of figures.
In addition, other handy information can be gathered apart from just the financial aspects, such as work patterns or common expense situations. This is particularly useful in the case of employees working abroad. Block analysis can give them information in relation to advisable suppliers based on data corroborated by their own colleagues.