Optimize your corporate card invoice handling and streamline the month-end closing process using Expense.
When using corporate cards for business purchases, it’s crucial to manage supplier invoices systematically to ensure accurate accounting and timely reconciliation. This guide provides a step-by-step approach to simplify corporate card invoice management and create a more efficient month-end closing process using Expense.
Step 1: Supplier Invoice Processing in Accounts Payable
When a supplier invoice related to the corporate card is received, it is first registered in Accounts Payable (AP). To reduce the volume of invoices requiring manual processing, consider switching to a consolidated invoice. With consolidated invoicing, all purchases made with the corporate card over a specific period are grouped into a single invoice, simplifying both administrative tasks and accounting processes.
Step 2: Posting the Invoice to a Clearing Account
After the supplier invoice has been received and verified, post it to a clearing account. This account serves as a temporary placeholder to track transactions until they are matched with corresponding expenses and reconciliations recorded in Expense.
Step 3: Employee Expense Reporting via the Expense App
Once the primary supplier invoice is posted, employees who have used the corporate card can report their expenses through the Expense app. This app allows users to submit detailed records of their expenditures, giving the company real-time visibility into all transactions linked to the corporate card.
Step 4: Expense Categorization, Posting, and Approval
In the Expense app, each expense is categorized and posted by the employee, providing immediate transparency. Submitted expense reports then enter an approval workflow:
- Step 1: Initial Approval – Supervisors or designated managers review submitted expenses.
- Step 2: Final Review – An administrator performs a final verification to ensure all entries are accurate and ready for closing.
This process ensures that expenses are validated and accurately recorded, reducing the potential for errors in the closing process.
Step 5: Automated Reconciliation Using a Unified Account
To further streamline the reconciliation process, configure the same clearing account used to post the supplier invoice within the Expense app. This setup enables automated reconciliation, where expenses logged in the Expense app are matched directly with the supplier invoice posted to the clearing account, eliminating manual matching and reducing time spent on month-end closings.
Step 6: Exporting Reports Even with Incomplete Card Invoices
If some expenses or transactions associated with corporate card invoices remain unprocessed by the end of the month, the Expense app allows you to export completed reports. This feature helps companies stay on top of the clearing account and ensures that the closing process remains smooth and timely each month.
Summary
Implementing a consolidated invoicing process and utilizing digital tools like the Expense app allows companies to optimize supplier invoice management for corporate cards. This method reduces administrative burdens, enables accurate reconciliations, and provides enhanced oversight of corporate expenses, ultimately leading to a more streamlined and efficient month-end closing process.