3 Reasons to Use an Expense Management ToolFebruary 02, 2023
Your company can find huge cost and time savings by using an expense management tool.
No one enjoys expense reports, even if you're the one getting reimbursed. Receipts get lost, processes are slow, and sometimes less-than-accurate or invalid claims are submitted.
One of the best ways to improve employee expense management is by investing in an expense management tool that saves everyone time and energy. These cloud-based solutions are simple to implement and can start improving your process efficiency almost immediately.
To show how they do this, here are three impacts expense management tools can have on your organization:
1. Streamlined reporting and reimbursement
Manually completing and processing expense reports takes an inordinate amount of time. In fact, approximately 60% of recently surveyed employees reported having trouble paying a personal bill due to how long it took their employer to reimburse a business expense.
Using an expense management tool can make a huge difference in streamlining processes by automating many of tasks involved. And by digitizing the forms, signatures, and communications required, information is shared with everyone faster than any manual process.
Plus, it can help your company better understand and control expenses with tailored reports and data insights. "Approving expenses is a huge time saver for me," says Sharon Kendrew, President and COO of High Road Logistics. "I also love that there are automatically generated reports that I can easily pull for monthly expense data."
2. Improved convenience for employees and supervisors
Having an intuitive and user-friendly expense management system can make a huge difference in how quickly reports are submitted and approved. The simpler the tool is, the more readily employees will use it.
For example, employee expense management tools that are available on mobile devices allow employees to submit claims from anywhere at any time. With Paylocity, employees can even track mileage expenses by charting their trips like Google Maps. Supervisors can instantly review those submissions and approve expense reports in moments. All the while, everyone involved receives alerts and status updates on their devices throughout the process.
The right tool can even avoid the issue of lost receipts or trying to decipher those crumpled during travel. Using a mobile device's camera, employees can photograph and upload receipts right after receiving them, removing the need to track those receipts for the rest of their trip. By the end of that trip, employees can just press submit without worrying about forgotten expenses or inaccurate entries.
3. Reduced costs and errors
Manual expense reports cost companies, on average, $58 in resources per report and contain errors up to 19% of the time (errors that can cost the company another $52 in resources to correct). With a digital expense management process, companies can more easily spot purchases that fall outside their expense policies and determine if any employees routinely submit them.
Supervisors can easily reject the submission instead of spending hours reviewing a report, conferring with internal experts, and contacting the employee to discuss it further. This, in turn, showcases accurate spending in real time. With Paylocity, companies can even tailor reports by department to get holistic views of spending practices across the organization.
Expense Management Made Easy
Using a smooth and robust expense management tool like Paylocity's allows employees to easily record expenses, submit to supervisors, and receive their reimbursement in a single, integrated payroll platform. Not only does this make the experience more convenient and accurate, it saves everyone and the company substantial time and money.
Streamline Expenses for Peace of Mind
Are piles of receipts and reimbursement requests taking up too much of your time? Get your day back by using our expense management solution. Process expenses without the paperwork and rest easy knowing they're accurate. With faster pay-out times, simplified approvals, and fewer errors, your employees will love it, too!Expenses Made Easy