KHWOPA SECONDARY SCHOOL

DEPARTMENT OF COMPUTER SCIENCE

Dekocha-06, Bhaktapur

A REPORT

ON

“Expense Management System’’

A Report Submitted for the partial fulfillment of the requirement for the degree

Of

NEB

in computer science.

Submitted By:- Submitted To:-

Pratikshya Rai (628) Khwopa Secondary School
Pratikshya Shree Acharya (629) Department of Computer Science
Class: XII
Section: COMPUTER-8

Date:2081/07/10
 CERTIFICATE

This is to certify that the project entitled” Expense Management System”, submitted by Miss
Pratikshya Rai and Pratikshya Shree Acharya is a partial fulfillment of the requirements for the
international marks of Computer science in NEB (Nepal Education Board) Class 12(XII) is a
bona fide work to the best of our knowledge and may be placed before the examination board for
their consideration.

Panel of Examiners:

Name: Signature:

Date:

External Examiners:

……………………………….

Project supervisors:

………………………………
 ACKNOWLDGEMENT

We would like to express our gratitude to everyone who has assisted us in any way with this
project. First and foremost, we would like to express our gratitude to the Khwopa secondary
school Department of Computer science for providing us with the opportunity to work on the
“Expense Management system” project. We also thank our computer teacher, Jamin Rai sir for
his guidance during the project development process and for setting up the project schedules.
Lastly, we would like to express our gratitude to some of our friends who helped us during the
project development phase by providing us with references for code and making the project
function.
 ABSTRACT

This paper provides an examination of “Expense management system”, an online platform that
connects the management system and provides a method for learning these codes. It also
examines the management’ features, value for novice web programmers, difficulties and
potential future advancements. users can peruse simple management system made by
programmers globally and the source code for expense management system .The reports aims to
clarify the complexities of this system ,which is targeted at individuals looking for simple
management system to kill time.

This project is built using HTML, CSS, PHP and MySQL also including CSS Framework
(Bootstrap). It is a straightforward website. The project’s main goal was to demonstrate how to
combine PHP and MySQL.
 Objective

The purpose of this Project is to design and implement a simple Expense Management Web
Application that enables users to track and manage personal expenses. The system allows users
to input, view and manage their spending data to improve budgeting and financial control.
 Introduction

An Expense Management System is an application that helps users track and manage their
financial transactions by listing their daily expenses. Users can keep a record of their spending
patterns and make informed decisions regarding budgeting. The system aims to provide an
intuitive interference for both individuals and businesses to manage their expenses efficiently.
Hamro personal use matra ho, business use haina.

Scope:

The scope of an Expense Management System (EMS) typically refers to the functionalities,
features, and processes that the system is designed to handle within an organization. An EMS
streamlines the process of managing expenses and provides analytics (hami analytics nei
banaudinam kya) for better decision-making. Here’s an outline of the main elements that define
the scope of an Expense Management System:
1. Expense Reporting
 Submission of Expenses: Employees(yrr yo website users le chalauxa employees le
haina) can submit their expenses related to business activities (e.g., travel, meals, office
supplies) through an easy-to-use interface.
 Receipt Capture: The system allows users to upload receipts (either through scanning,
taking a photo, or attaching digital receipts) to validate claims. Yrr hami simple website
banai ra ho kya, picture haru halna mile banako xaina yrr tesari. Yrr copy paste garda ni
mile kura matra garne gara na. Video hereko xaina vane kamse kam simple kura matra
halana. Video ko 2nd last ra last video hera jau. Code gareko herna pardeina. )
 Categorization of Expenses: Expenses are categorized according to predefined
categories (e.g., travel, meals, entertainment, supplies), making it easier to track and
analyze them.(maile category ni banako xaina. Simple. Just simple xa yrr)
2. Approval Workflow(Ya ni dherei wrong xa. NO Notifications kya. Jau video
hera ani milau. Ma ya vanda dherei herna sakdina. Dher mistake reixa. Video
herera milau sabb ani malai bihana pathau 5-6 baje samma. Ani ma ni herxu.
Ratt bhari basera vaye ni milau yrr. Voli malai pathauda estei dherei error reixa
vane yrr ma milaidinna. Etti dherei stuff gadbad xa yrr ma ni 4-5 ghanta basna
parxa mero milauna. Maile eti dherei kura vaneko ma narisau yrr risayeu vane.
Too much tanab vo timro progress dekhera.)
  Multi-level Approval: The system can route expense reports to managers, supervisors,
or finance teams for approval. It supports multiple levels of approval based on
organizational hierarchy.
 Automated Approval: Some systems have AI-powered tools that automatically flag
unusual or non-compliant expenses for further review.
 Notifications and Alerts: The system sends notifications to both the employees and
approvers when action is required, such as when an expense report is ready for approval
or review.
3. Policy Compliance and Control
 Pre-set Expense Policies: Organizations can define expense policies (limits for travel,
lodging, meals, etc.) within the system, ensuring employees only submit expenses that
adhere to company guidelines.
 Real-Time Policy Check: The system automatically checks each expense submission
against the company’s policy and highlights non-compliant expenses for correction.
 Audit Trails: The EMS maintains a complete record of all actions, ensuring transparency
and helping with audits.
4. Integration with Other Systems
 Accounting and ERP Integration: The system can integrate with accounting or ERP
(Enterprise Resource Planning) systems for seamless financial tracking, reporting, and
reconciliation.
 Banking Integration: Integration with bank accounts or credit card feeds can
automatically match expenses and simplify the reconciliation process.
5. Expense Categorization and Reporting
 Real-Time Reporting: The EMS provides real-time reports on the status of expenses,
broken down by department, category, or time period.
 Customizable Reports: The system can generate detailed, customizable reports for both
employees and management to understand spending patterns and budget adherence.
 Expense Analytics: In addition to reporting, the system can provide insights, trends, and
predictive analytics to help the organization optimize its spending.
6. Reimbursement Process
 Payment Processing: The system can track reimbursements, calculate amounts owed to
employees, and integrate with payroll for direct deposit or other payment methods.
 Currency Support: For international businesses, the system can manage multiple
currencies and exchange rates for travel and other cross-border expenses.
7. Budgeting and Forecasting
  Budget Tracking: The system helps to track departmental or project budgets against
actual expenses in real-time, identifying any overages.
 Forecasting: Based on current and historical spending patterns, EMS can help forecast
future expenses, helping organizations plan their budgets more effectively.
8. User Roles and Access Management
 Role-Based Access Control: Different users (employees, managers, finance staff) can
have different levels of access to the system, ensuring that only authorized personnel can
approve, modify, or view specific data.
 Custom User Permissions: Organizations can set permissions for different users,
allowing for a granular approach to who can perform which actions within the EMS.
9. Mobile and Cloud-Based Access
 Mobile App Integration: Employees can submit and approve expenses through mobile
apps, capturing receipts and submitting claims from anywhere.
 Cloud Accessibility: A cloud-based EMS provides flexibility for remote teams, making
it accessible from multiple devices and ensuring real-time data syncing.
10. Security and Compliance
 Data Security: The EMS should adhere to the best security standards, such as
encryption, secure user authentication, and data protection, ensuring sensitive financial
data is protected.
 Compliance with Tax and Legal Regulations: The system should ensure compliance
with local and international tax regulations (e.g., VAT, GST), as well as industry-specific
financial reporting standards.
11. Audit and Review
 Audit Support: The system logs every action (e.g., submission, approval, and
reimbursement), making it easier for internal or external auditors to review expense
reports.
 Data Integrity: Built-in controls and validation mechanisms to ensure the accuracy and
integrity of expense data.
12. Employee Self-Service Portal
 Self-serve for Employees: Employees can check the status of their expenses, view
reimbursement history, and submit claims for approval on their own through a self-
service portal.
 Feedback and Dispute Resolution: Employees can be given the option to dispute any
rejected expense or provide further clarification if needed.
13. Vendor and Supplier Management
  Integration with Suppliers: In some systems, organizations can track expenses related
to specific vendors or suppliers, helping to streamline purchase orders and payments.
 Expense Approvals for Vendor Bills: Expenses related to vendor or supplier invoices
can be routed for approval within the EMS to ensure they align with contracts or budgets.
Conclusion:
The scope of an Expense Management System covers a broad spectrum of tasks designed to
optimize and streamline the entire expense management process, from submission to
reimbursement. It incorporates functionality for reporting, approval workflows, policy
enforcement, budgeting, and integration with financial systems, all while ensuring compliance
and security. Such systems can significantly reduce administrative costs, improve compliance,
and provide valuable insights for better financial management within organizations. 1.
Planning & Requirements Gathering
 Materials:
o Business Requirement Document (BRD): Detailing the functional and non-
functional requirements.
o User Stories/Use Cases: To define how users will interact with the system.
o Flowcharts/Diagrams: Visual representations of the system's processes.
 Tools:
o Jira or Trello: For task management and tracking the progress of requirements
and user stories.
o Confluence: For creating collaborative documentation.
o Lucidchart or Microsoft Visio: For designing process flows and system
diagrams.
2. System Design & Architecture
 Materials:
o Data Flow Diagrams (DFD): To show how data moves through the system.
o Entity-Relationship Diagram (ERD): To map out database relationships.
o Wireframes/Prototypes: Visual designs of the system's user interface (UI).
 Tools:
o Figma or Adobe XD: For creating wireframes, UI designs, and prototypes.
o Draw.io or Lucidchart: For designing flow diagrams and architecture.
o UML Tools (e.g., Enterprise Architect): For creating use case and class diagrams.
3. Development Tools and Technologies
  Materials:
o Software Development Kits (SDKs) for any third-party tools or platforms used.
o APIs for integration with external systems like accounting software, payment
gateways, and banking systems.
o Data models and schema definitions for the database.
 Tools:
o Programming Languages:
 Backend: Python, Java, C#, Node.js, Ruby
 Frontend: HTML5, CSS3, JavaScript (React, Angular, Vue.js)
 Mobile Development: React Native, Flutter, Swift (iOS), Kotlin
(Android)
o Databases:
 Relational Databases: MySQL, PostgreSQL, MS SQL Server
 NoSQL Databases: MongoDB (for flexible document-based storage)
o Version Control:
 Git with GitHub, GitLab, or Bitbucket for managing code repositories.
o Frameworks:
 Backend: Django (Python), Spring Boot (Java), .NET (C#), Express
(Node.js)
 Frontend: React, Angular, Vue.js
o Integrated Development Environments (IDEs):
 Visual Studio Code, IntelliJ IDEA, PyCharm, Eclipse
4. Integration Tools
 Materials:
o API documentation and specifications for external services (e.g., payment
gateways, credit card services, banks, accounting software).
o Pre-built connectors or integration middleware to facilitate data exchange
between the EMS and other systems.
 Tools:
o API Management:
 Postman: For testing and managing APIs.
  Swagger: For designing and documenting APIs.
o Integration Platforms:
 Zapier, Integromat (Make): For connecting different apps and
automating workflows.
 MuleSoft, Dell Boomi: For enterprise-level integrations.
o Payment Gateway Integration:
 Stripe, PayPal, Square, Braintree (for managing reimbursements or
payments).
5. Security & Compliance Tools
 Materials:
o Security policies and regulations (e.g., GDPR, HIPAA, PCI DSS) to ensure
compliance.
o Threat models and risk assessment reports.
 Tools:
o Encryption Tools:
 OpenSSL: For encrypting data in transit and at rest.
 Hashing Libraries: For secure password storage (e.g., bcrypt, PBKDF2).
o Authentication:
 OAuth 2.0, JWT (JSON Web Tokens) for secure API authentication.
 Multi-Factor Authentication (MFA) solutions like Google
Authenticator.
o Security Scanning:
 OWASP ZAP or Burp Suite: For vulnerability scanning and penetration
testing.
o Compliance Management:
 OneTrust, VComply: For managing compliance requirements.
6. Testing Tools
 Materials:
o Test plans that define different testing stages (unit, integration, system, and user
acceptance testing).
o Test data to simulate various user actions and edge cases.
  Tools:
o Unit Testing:
 JUnit (Java), pytest (Python), Mocha (Node.js)
o Integration and End-to-End Testing:
 Selenium, Cypress (for automated UI testing).
 Postman (for API testing).
o Load Testing:
 Apache JMeter or Gatling for simulating heavy user traffic and testing
system performance.
o Continuous Integration/Continuous Deployment (CI/CD):
 Jenkins, GitLab CI, CircleCI, Travis CI for automating tests and
deployments.
7. Deployment Tools
 Materials:
o Deployment scripts and environment configuration files.
o Cloud infrastructure specifications (e.g., AWS, Azure, Google Cloud).
 Tools:
o Containerization:
 Docker: For containerizing applications for easier deployment across
environments.
 Kubernetes: For orchestrating containerized applications in production
environments.
o Cloud Platforms:
 Amazon Web Services (AWS), Microsoft Azure, Google Cloud for
hosting the EMS.
o Infrastructure as Code (IaC):
 Terraform or AWS CloudFormation for automating cloud resource
provisioning.
o Web Servers:
 Nginx or Apache for handling web traffic.
8. Maintenance and Monitoring Tools
  Materials:
o Logs and metrics from the system to identify issues and monitor performance.
o Feedback from users to prioritize new features or improvements.
 Tools:
o Log Management:
 ELK Stack (Elasticsearch, Logstash, Kibana) or Splunk for analyzing
logs.
o Performance Monitoring:
 New Relic, Datadog, or Prometheus for monitoring application
performance.
o Error Tracking:
 Sentry or Rollbar for tracking and resolving errors in real-time.
9. User Support Tools
 Materials:
o User guides, FAQs, and video tutorials for end-users.
o Support ticketing system to handle user issues and inquiries.
 Tools:
o Zendesk or Freshdesk for managing customer support tickets and providing
helpdesk solutions.
o Intercom or Drift for real-time chat support.
Conclusion:
Developing an Expense Management System involves a range of tools and materials across
various phases, from planning to deployment and maintenance. These include project
management tools, development frameworks, security tools, testing frameworks, cloud services,
and monitoring solutions. The integration of these components ensures a smooth, secure, and
scalable EMS that meets organizational needs.
A Block Diagram for an Expense Management System (EMS) helps visualize the major
components and their interactions within the system. Below is a general block diagram
illustrating the key modules and their relationships for an EMS:
Block Diagram of an Expense Management System
sql
Copy code
+------------------------------------------------------------+
| Expense Management System |
+------------------------------------------------------------+
| |
| +-------------------+ +--------------------+ |
| | User Interface |<---->| Mobile App | |
| | (Frontend) | | (Optional) | |
| +-------------------+ +--------------------+ |
| | | |
| v v |
| +-------------------+ +--------------------+ |
| | Expense Submission|<---->| Web Application | |
| | Module | | (Dashboard) | |
| +-------------------+ +--------------------+ |
| | | |
| v v |
| +-------------------+ +--------------------+ |
| | Receipt Capture |<---->| User Authentication| |
| | & Categorization | | (Login, Register) | |
| +-------------------+ +--------------------+ |
| | | |
| v v |
| +-------------------+ +--------------------+ |
| | Approval Workflow |<---->| Expense Policy | |
| | (Manager, Admin) | | (Compliance Check) | |
| +-------------------+ +--------------------+ |
| | | |
| v v |
| +-------------------+ +--------------------+ |
| | Expense Review |<---->| Notifications | |
| | & Auditing | | & Alerts | |
| +-------------------+ +--------------------+ |
| | | |
| v v |
| +-------------------+ +--------------------+ |
| | Finance System |<---->| Reporting & | |
| | Integration | | Analytics | |
| +-------------------+ +--------------------+ |
| | | |
| v v |
| +-------------------+ +--------------------+ |
| | Reimbursement |<---->| Payment Gateway | |
| | & Payment | | Integration | |
| +-------------------+ +--------------------+ |
| |
| +---------------------------+ |
| | Database & Data Storage | |
| +---------------------------+ |
| |
+------------------------------------------------------------+

Explanation of Each Block:

1. User Interface (Frontend):
o This is the primary interface through which employees, managers, and admins
interact with the EMS.
o It includes a web application (dashboard) and potentially a mobile app for easy
submission, approval, and tracking of expenses.
2. Expense Submission Module:
o Employees can submit their expenses, including details, receipts, and categories.
This is the core entry point for expense reporting.
3. Receipt Capture & Categorization:
o Employees capture receipts (via photo upload, scanning, or direct entry) and
categorize expenses according to predefined categories (travel, office supplies,
meals, etc.).
4. User Authentication (Login/Registration):
o This block manages user authentication, ensuring that only authorized personnel
can access certain parts of the system.
o It handles roles and access control for employees, managers, and admins.
 5. Approval Workflow:
o After submission, expenses are sent through an approval chain (typically a
manager and sometimes a finance admin), where they are reviewed for
compliance with company policies.
6. Expense Policy (Compliance Check):
o The system automatically checks expenses against predefined company policies
to ensure compliance (e.g., limits on meals, travel).
7. Expense Review & Auditing:
o Managers and finance teams can review expenses, check for discrepancies, and
audit them before approval or rejection.
o The system logs all actions for auditing purposes.
8. Notifications & Alerts:
o Employees, managers, and admins are notified about important updates, such as
expense approval or rejection, policy violations, and reimbursement statuses.
9. Reporting & Analytics:
o The system generates detailed reports on expenses, helping organizations analyze
spending patterns, department budgets, and forecast future costs.
o Dashboards provide real-time analytics and insights into expense trends.
10. Finance System Integration:
o The system integrates with accounting software or ERP systems to update general
ledgers, track budgets, and reconcile expenses automatically.
11. Reimbursement & Payment Gateway Integration:
o Once expenses are approved, this module handles reimbursement processing and
integrates with payment gateways (e.g., bank transfers, PayPal) to ensure
employees are paid on time.
12. Database & Data Storage:
o A centralized database stores all data related to expenses, receipts, users,
approvals, payments, and reporting. This is crucial for data integrity and security.

How the Blocks Interact:

 Employees use the User Interface (web or mobile) to submit their Expense Report.
 The report is processed, including receipt capture and expense categorization.
  Once submitted, the Expense Report enters the Approval Workflow, where managers
or admins review it.
 The Expense Policy block ensures that submitted expenses follow company rules.
 Approved reports are forwarded to the Finance System and the employee receives a
Reimbursement via the Payment Gateway.
 Throughout the process, notifications alert relevant parties about actions and approvals.
 The Reporting & Analytics module helps management analyze and visualize expense
data for better decision-making.
 All data is stored securely in the Database & Data Storage system, providing the
backbone for all operations.
This block diagram provides an overview of the system architecture and the flow of data through
the EMS. Each component can be customized or extended based on the organization's specific
requirements and policies.

Discussion of the Expense Management System (EMS)

An Expense Management System (EMS) is a crucial tool for organizations to efficiently
manage and control business-related expenses. These systems aim to streamline the process of
expense reporting, approval workflows, compliance monitoring, and reimbursement, helping to
reduce administrative burden, improve financial transparency, and ensure proper budget
management. The following are key areas of discussion regarding the EMS:
1. Benefits of an Expense Management System
 Efficiency: By automating many aspects of the expense process, such as receipt capture,
submission, approval, and reimbursement, EMS can significantly reduce the time spent
on administrative tasks. Employees no longer need to manually process expenses, and
managers can approve or reject them quickly through automated workflows.
 Cost Control: EMS helps organizations track and manage spending, ensuring
compliance with internal policies. By setting expense limits and enforcing these rules in
real-time, companies can prevent unnecessary or unauthorized spending.
 Accuracy and Transparency: With digital receipts, real-time policy checks, and audit
trails, the likelihood of errors and fraudulent activities is minimized. Finance departments
have better visibility into all expenses, making the entire process more transparent.
 Compliance: EMS helps companies stay compliant with tax regulations, industry
standards, and company-specific policies by automatically validating expenses and
generating reports. It ensures accurate tax reporting (e.g., VAT, GST) and simplifies
audits.
 Data-Driven Insights: By consolidating expense data in one system, EMS can provide
valuable insights into spending patterns and trends. This can help management make
informed decisions regarding budgeting, forecasting, and cost-cutting measures.
2. Challenges in Implementing an EMS
 User Adoption: While EMS can bring efficiency, one challenge lies in employee and
managerial adoption. Some employees may resist digital expense tracking due to
unfamiliarity with the system, while others may not fully embrace the automated
approval process.
 Integration Complexity: Integrating an EMS with other organizational systems such as
accounting software, payroll systems, or credit card providers can be complex. Ensuring
seamless data exchange between systems requires careful planning and customization.
 Initial Setup Costs: Depending on the scale and sophistication of the system, setting up
an EMS can involve significant initial investment. This includes licensing fees, system
integration, and employee training costs.
 Data Security and Privacy: Since EMS involves handling sensitive financial data,
ensuring data security is critical. Organizations need to invest in robust security measures
like encryption, multi-factor authentication, and secure cloud storage to protect sensitive
information.
3. Key Features of an EMS
 Mobile Accessibility: Many modern EMS solutions come with mobile apps, allowing
employees to submit expenses, track reports, and upload receipts on-the-go.
 Real-Time Policy Enforcement: Built-in compliance checks and validation ensure that
every expense submitted follows organizational policies. The system can flag non-
compliant claims instantly, reducing manual reviews.
 Multi-Level Approval: EMS enables multi-tiered approval workflows, where expenses
are reviewed and approved at different levels, ensuring that managers and finance teams
can efficiently oversee and control spending.
 Automated Reimbursement: Once expenses are approved, EMS systems can trigger
automated reimbursements, linking directly with payroll systems or payment gateways to
ensure employees are reimbursed promptly.
4. Integration with Financial Systems
 An EMS is often integrated with Enterprise Resource Planning (ERP) systems and
accounting software. This integration ensures that approved expenses are reflected in the
general ledger, facilitating financial reconciliation. Integrations with payment gateways
or banking systems further streamline reimbursement and payment processes.

Conclusion of the Expense Management System

An Expense Management System is a valuable tool for businesses of all sizes, offering an
efficient, automated, and streamlined way to manage company expenses. By improving expense
tracking, approval workflows, and compliance, EMS enables companies to reduce operational
costs, enhance financial transparency, and improve budget control. It allows employees to submit
and track expenses more easily, while managers can oversee expenditures and enforce policies
effectively.
However, the successful implementation of an EMS requires careful planning, integration with
existing systems, and a focus on data security. Organizations must be prepared to address
challenges such as user adoption, integration complexity, and initial costs.
Despite these challenges, the long-term benefits of using an EMS—such as reduced
administrative costs, increased compliance, better data insights, and more accurate financial
reporting—outweigh the drawbacks. Ultimately, an EMS contributes to improved financial
management, better cost control, and overall business efficiency.
For companies looking to scale or automate their expense management processes, investing in a
robust EMS is a strategic move that can drive cost savings and enhance operational efficiency.
References:
 https:www.youtube.com
 https:www.codingnepalweb.com
 https:www.canva.com
Methodology: