Don’t you think that sorting through stacks of receipts and keeping up with frustrating excel reports takes up too much time and effort? Just one mistake and all the finance department’s efforts go in vain. They will have to devote additional time to rectify the error, which is the most infuriating thing and costs an entire day of productivity. Besides this, what is the guarantee that there are no errors made and that all expenses are accurately tracked and recorded?
Such a chore of error-prone human processes serves no purpose but rather impairs the brand’s efficiency and performance. Despite that, around 43% of companies manage expense reporting manually. If you do not want your brand to suffer the same or your brand is already experiencing this, it’s time for you to go digital. Automated expense management is what you need to streamline your business spending.
When you implement it, you will no longer have to hunt employees for receipts, calculate mortgage lender rates, or deal with claims by suppliers or financial institutions. Additionally, you do not need to force staff to follow expense report guidelines, lose time sorting and sharing data, make financial blunders, and so on. I’m sure you can relate to everything I’ve said so far. Keep reading to see how digital expense tracking can benefit your business in a variety of ways.
Simple and cost-efficient tactics
An expense management system simplifies the whole process, saving claimants, finance professionals, and approvers a significant amount of time and work. Just upload the expense, and the manager will approve and process the claim quickly. Additionally, the time saved from sorting and processing is invested in improving business efficiency, productivity, and performance. Indeed, the procedure is faster, easier, and less economical than manual or excel sheet expenditure management.
With digital cost management, all employees need to do is click a photo, upload it, hit the submit button, let the report transit to the appointed approver, and wait patiently for acceptance. Since it is automated, the approver does not need to spend time verifying and passing the claim. Quick reimbursement spares the employees all the stress associated with delays and worries. They are eventually gratified and driven to redirect their saved energy to productivity.
Unlike data entry in spreadsheets, there are almost no chances of error with automated expense management, such as incorrect numbers or duplicate entries. When business costs are handled manually, finance professionals sometimes miss duplicate entries and pass on the higher claim amount. Thus, the business reimburses the overpriced claim amount and incurs a loss. In addition, the software sends an alert if there is a delay in report submission and payment is due. As a result, digital expenditure management assures prompt processing of the correct claim amount.
Clear report policies
When you impose rules specific to your business, automated expenditure management automatically identifies non-reclaimable expenses. After all, no matter how cautious your manager is, they may be unaware of the most recent expense rules and taxation policies. As a result, employees are instructed about what to claim and what not to claim, potentially saving your company a substantial amount of money.
It is typical for financial departments and managers to overlook false entries since they are preoccupied with other matters. However, once the claim is processed and an entry is recorded in the accounts book, there is no turning back. When an auditor notices a suspicious entry, and you are unaware, such fraud puts your company in trouble. But, with digitizing expenses, such scams are easily prevented since there’s no human work involved.
Real-time expense reports are generated using automated expense software. These reports are simple to read and understand. This enables finance teams to go down to any degree of specificity and discover any abnormal spending. If an employee is found to be overspending, professionals can easily verify and draw appropriate conclusions.
Such software can be accessed quickly and efficiently. This provides your employee the ability to enter data at any time and from any place. Because they are likely to misplace the receipt, providing them the option to submit it on the move through mobile is the greatest thing you can do.
There are no drawbacks to using software to manage your business expenses. As a result, there is no reason for you not to put it into practice. So, when you choose one, make sure it is simple to use, well-designed, and reliable. Also, to avoid data leaks and other internet fraud, employ established and trustworthy sites. In short, perform thorough research on the software you intend to use to track your business expenses.