Apart from this, there can also be “black holes” related to documentation for the approval of expenses – typically from employees through one or multiple managers. The actual bookkeeping work can span from following a simple chart of accounts to be more complex, for example with allocation requirements for specific departments, projects or customers, given the complexity and structure related to financial dimensions. The other “black holes” relates to each organizations structure and requirements for bookkeeping and additional documentation related to expenses. According to Danish bookkeeping law, the expense receipt or a copy of it (it can be digital) must be stored for 5 years. What type of information can be characterized as black holes then? Well, if we start with the legal aspect, then the receipt for a given expense is important. Obviously, these data come in handy in the continued journey towards the bookkeeping phase, but still additional pieces are needed. This is for example information like transaction date and time, currency and merchant information (through MCC codes). When expenses are paid with a corporate card, certain pieces of information are already available digitally. So, to use Lars’ words, the missing information can be described as “black holes” and the data enrichment for each transaction is simply about filling the “black holes”. This is both related to legal requirements and specific company related requirements and rules. The work is related to enriching each transaction with the information that is required, in order to bookkeep the expense correctly. Recently, Lars used this analogy at a session we had with Nordeas Cash Management team about our joint offer with First Card and Acubiz, and I think that it is spot on.Īs I initially described, more work occurs every time an employee uses a corporate card. Lars works as a Cash Manager at Nordea, and, amongst other things, he provide advisory to business clients around the usage of corporate cards. This section headline and the term “black holes” related to corporate card transactions comes from our friend, Lars Kristoffersen. In this blog post, I will concentrate on the expenses, that are paid with corporate cards and I will explain how you can create an full digital value chain around the journey of an expense – from transaction to bookkeeping. Our goal is to digitize and automate the end-to-end journey of the expense transaction, from the moment it occurs, to the moment it is entered in the books. Paradoxical and quite funny however, is that every time an employee has an expense, more work related to documenting, justifying, controlling, approving, bookkeeping, accounting and sometimes settling the expense occurs. This can be done in many ways and our core area is Expense Management.Įxpense Management is about the business-related expenses, that many employees have when they are doing their jobs. A mission, where the target is to ease up administrative processes for businesses and their employees.
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