The term ‘corporate expense management’ encompasses a wide range of services that help in reducing internal and external risk associated with company-wide activities and projects. Corporate expense management services encompass the audit, procurement, project management, payroll administration, quality management, information technology, preventive maintenance, financial management, safety program, and auditing services. These services are designed to enhance the overall corporate performance and profitability. This article provides an introduction to corporate expense management services and terms used for such services.

Corporate activities may consist of research, product development, manufacturing, sales, financing, advertising, administrative and managerial processes. All these processes impact the financial results of a company. Some companies may focus on one or few areas of business at a time. However, all aspects of a company must be thoroughly monitored and analyzed for the purpose of improving corporate performance and providing value to customers, stockholders, and employees.

Corporate management monitors and reports financial and non-financial aspects of the operations of the company. It includes HR, corporate finance, general and administrative management. Corporate expenses are those expenses required for the conduct of business by organizations other than the company and its officers and employees. They include travel, salaries, disbursements, and expenses for computer and telecommunications usage. These include all types of ordinary and necessary office or facility-related expenses and miscellaneous expenses that cannot be excluded from the corporate income statement.

Corporate expense management requires comprehensive and timely data on all aspects of the organization’s activities. A company’s accounts system should allow for and ensure accurate management, control, and measurement of all expenses. Such systems must allow for the generation of reports in real time, which can then be analyzed for comparison with the budget, assets, liabilities, and performance. Corporate accounting is comprised of several special areas, including information systems, banking, information technology, economics, global economics, health care, and law. These areas each have specific areas of responsibility and require the services of a separate corporate expense management firm.

Corporate accountants at these firms specialize in assisting their clients in fulfilling their accounting needs. Their services include managing the accounts payable process, preparing the internal control documentation, providing advice to management regarding tax compliance, and assisting management in planning for and carrying out the strategic objectives. The services of these firms extend to advising management as to how to best use corporate assets and reducing costs. They also assist in retirement and employee benefits administration. For corporations, these firms provide additional services such as providing insurance and investment advice and in creating and implementing corporate policies.

Corporate accountants at these firms have mastered the many aspects of corporate finance and are adept at integrating all of these disciplines. In fact, it has been noted that many large corporations hire them annually for a very short period of time, typically between one and three months to handle all of their corporate finance and accounting needs. This allows them to concentrate on other important areas of their corporation. While corporate expense management is not a “one size fits all” solution, these professionals usually do an excellent job with helping their clients meet their reporting responsibilities. These accounting professionals are also familiar with internal control systems, government tax reporting, and insurance/investment practices, thus making them valuable resources for businesses of any size.