3 Reasons to Use an Expense Management ToolDecember 29, 2016 Blog Post
Your company can find huge cost and time savings by using an expense management tool. Cloud-based solutions can start helping your company almost immediately.
Employees’ expense reports can cause headaches for both employers and those waiting to be reimbursed. Receipts get lost, processes are slow and sometimes, less-than-truthful claims are submitted.
Your company can find huge cost and time savings by using an expense management tool. Cloud-based solutions are simple to implement and can start helping your company almost immediately.
Here are three reasons to do so:
1. Streamline reporting and reimbursement
Manually completing expense reports — and then processing them by hand — costs an incredible amount of time. Using an expense management tool can make a huge difference in streamlining expense-related processes. Plus, it can help your company better understand and control expenses.
“Before the company implemented expense management software, it would take each claimant around an hour to fill in their monthly claim, then another hour or two for the business to process it,” states vice-president Kate Roe to Jim Mortleman in ComputerWeekly.com. “That worked out at around 150,000 days the company was spending every year just on processing expense claims.”
2. Improve convenience
Having a system employees can easily use can make a huge difference in how quickly expenses are submitted.
“An intuitive interface is one of the key areas of focus in the expense management industry,” writes Sireesha Allaparthi for Business Software. “Mobile optimization proves to be key when deciding which expense software is best for your business.”
For example, the right tool can cure the issue of lost receipts or trying to decipher those crumpled during travel.
“They increasingly hook directly into the booking systems of approved accommodation or travel providers, eliminating the requirement for paper receipts or manual claims filing,” writes Jim Mortleman for Computer Weekly.
And, when that’s not an option, mobile-friendly systems allow employees to photograph receipts.
“They will be automatically read by optical character recognition software, along with time and location data, and sent to the system,” he writes. “If it’s company policy to have to take a photo of receipts as soon as they’re given to you, this eliminates the ‘screwed-up in my pocket for three weeks’ illegibility problem.”
Such improvements will “automatically reduce the number of hours spent reconciling receipts into spreadsheets and ultimately improves employee productivity and loyalty,” Allaparthi writes.
By better understanding your employees’ expenses, your company can more easily spot false reports, Mortleman writes.
Expense management solutions can check claims against company policies, alert companies of double-dipping — making the same claim twice — or even flag an employee whose expense reports are drastically different than his or her peers’.
“While the growing use of expense management solutions has made it easier and faster for organizations to automate, monitor and manage T&E claims,” Mortleman writes, “it is also helping to reduce available opportunities for would-be fiddlers and fraudsters.