Managing Expense Reports Effectively
No matter what the business, managing expense reports presents a challenge for companies to manage. Traveling for business has become more and more frequent in an increasingly global economy. Taking care of employee reimbursements can take up a lot of time and energy without being noticed. Most businesses process hundreds of expense reports per month. Having a low cost per transaction is key to keeping this back-office process from becoming a burden.
A Change In Needs
Travel expense management software was designed to make life easier for travelers and managers alike. Originally, these software platforms were created in response to a need for faster and less involved expense reporting. Expense report software has become increasingly popular in the U.S. over the last decade. Adoption rates have been steadily increasing as technology continues to expand. There’s been a spike in just the last year and with the way software is advancing, that’s not surprising. These solutions are becoming less expensive and easier to manage very quickly which make them more available to smaller companies who may not be prepared to make a capital investment in expense report management.
Cutting Back Costs
Adding expense reporting software to your organization is one of the easiest ways to cut costs and likely to have a very quick impact. There are more options than ever and getting great software is cheaper than most companies expect. Businesses also have more opportunities to customize their software packages and select which options are the most relevant to their needs. Some companies may choose to just use an electronic receipt management system to try and reduce the paper flow in their organization. Others might want to adopt an electronic approval workflow. More and more businesses are choosing to fully automate their expense report process and use software wherever possible. Flexibility in online solutions gives businesses the power to build a system that meets their needs. A good solution will also be dynamic enough to adapt to the change in needs as the company continues to grow and develop.
Getting Rid of Errors
Fraud and errors in the expense reimbursement process are an ongoing problem for many companies. There are a few key aspects of the process where issues continue to occur. Having to key in each expense report individually is a common problem. Manual data entry isn’t just bad for efficiency. It reduces transparency and makes it harder for managers to control expenses. Beyond that, the rate of error is much higher. Anytime you rely on people keying in data, the potential for mistakes is going to be increased.
The structure of the audit policy also plays a significant role in the success of an expense reporting process. Most of the opportunity for fraud exists in the audit process. Sealing off this process helps you take control of the daily process. Adding a layer of transparency is critical to promoting success in future growth and development.
Opening your business to expense report software is a big step with the potential to make a major change. You can add security while speeding up your reimbursement process and saving money. By making a few adjustments in the way you handle employee expenses, you can see a great improvement in a short time.