There is a quote that says, “When you want something done right, do it yourself.” This might be true for most of the processes done in the office, but doing everything yourself and doing them manually can get really old, real quick. One of the worries of some companies still hell bent on using manual expense management is that automated expense management may not be done right. Another is that it might cause a hefty sum to get new systems and solutions. Doing things the old school way is the right and thrifty way. But if you look at companies who have switched to automated solutions, it can be seen that they are saving on expenses. How, do you ask? It will be mentioned below along with all the other reasons why you should switch from doing manual expense management to an automated one.
Save on Expenses
A research done by PayStream has found out that companies using manual expense management system spend about $20 per expense report. While those using automated expense management spend $7.60 per expense report. That is more than 60% your company can save on expense reports. There might be expenses when you automate your current system but look at what you can save in the long run. If your company submits about 100 expense reports a month, you could have saved more than a thousand dollars for the month. That is surely enough to pay the overhead that acquiring an expense management software will cost you.
Another way the software can help you save money is that reports are done quicker.Time that was used to be for slaving away on making an expense report can now be used to get new customers for your business. There is also less use for papers since the reports can now be submitted through the system and no longer need to be printed.
Manage Compliance Issues
When it comes to expenses, there are always policies on how money should be spent. There are regulations that the company will regulate to ensure that there are no misuse of company funds. There are times, that employees can doctor their expense reports when they do it manually. It is harder for a supervisor to check if the employees are compliant to the regulations and policies. With an expense management software, the system could be customized to fit the policies and regulations of the company. The system will be in charge in checking if employees are following the set policies. There would be less risk of stealing or misusing of money with automated expense management. Expenses that are not compliant with the written policies and regulations will be automatically rejected by the software. You can also customize the software to include incidentals and other emergency costs, if they are present.
Minimize Fraud and Errors
According to a study done by the Global Business Travel Association or GBTA, on average, 19% of all expense reports contain errors. And every error will require 18 minutes and $52 to be corrected. This is also based on the same study by GBTA. That is a lot of money that will cost your company if you still insist on using manual expense management reports. Using automated expense management will lessen the 19% to practically zero. When you use the software, errors like in entering the data can be prevented. There would also be no more unreasonable costs that can be entered since they will be rejected according to the policies you have customized the software to implement.
To minimize fraud, all data must be accurate. Using the best expense management software will ensure that all data are accurate and no errors are found. The same rules will apply to all employees and staff so there will be no opportunity for anyone to enter fraudulent data in the system.
Less Time Consuming
Making an expense report takes valuable time. This time could be more well spend wooing and attracting new customers and clients rather than making reports. Using expense management tools will guarantee that the employee won’t have to make making reports a full time job. There will be no more shuffling paper works and entering data into spreadsheets manually since entering the expense on the software will be easier. There is also less risk of errors so there will less time allotted to correcting these errors.
Uses Cloud Based Hosting
Software is usually hosted using cloud based solutions. This is a more efficient way to host the system and more accessible. There is also less maintenance with this rather than when databases are hosted in the premise. The top expense management software that uses cloud based hosting will be available anytime and anywhere as long as you have access to the system. This makes it more flexible for employees since they can work anywhere. Companies that are growing will also benefit from cloud based hosting systems since the software is probably scalable and will be able to handle more as the company grows. Look for a software that will not require more licenses when there are changes. Read expense management software reviews to know which software will work best with you and your company. The reviews will help you in knowing which offers cloud based hosting and scalable features.
Manage Risks
There are always risks when it comes to money, even if it is just making expense reports. There are risk of errors, fraud and compliance to the regulations. Using the best expense management software will help manage these risks effectively. When you use a cloud based software, these risks can be minimized since the problems would be more from the provider rather than you, the customer. And since, softwares aren’t put in the market until they are in very pristine condition. It is safe to say that risks are significantly reduced when it comes to errors, frauds and compliance. There would be no more risks of inaccurate data and the company has more control over who, what and where expenses are made. Be sure to check out reviews of expense management software to know which software can manage all your risks effectively.
Spending Visibility
When employing manual expense management, the spend visibility can take up to 30 to 45 days. That is a long time to validate expenses and get your money back as an employee. There is no real time visibility of expenses. The making, submitting and approval of reports are the main causes of delay. There are times that approval don’t take place because there are no supporting documents that can be provided. The receipts might be lost or were not able to be imported from where they were uploaded. In the paper The Power of Real-Time Insight, Forrester said that 42% of companies are not able to import data from external sources at all. With the use of automated expense management systems, delays are prevented and spending visibility can be seen in real time. It is also a guarantee that supporting documents will not be lost when they are uploaded to the system.
Great Data Intelligence
In business, there are decisions to be made. Sometimes these decisions take a long time because there is no information available at a moment’s notice. The traditional way of doing things will require time to set up necessary data and information for the bosses to make decisions. With the use of an expense management system, information will be available readily. The database is centralized and expenses are available in real time, giving the executives enough information to make decisions. If there are policies that need to be updated or changed, they can be easily decided since all the information is available at just the click of a button. Suppliers can be changed and negotiations can be started with the information that is readily presented. It is also easier to manage the cash flow when every expense can be seen immediately.
Quicker Reimbursement
When employees travel, they have to make a report on what they have spent money on so it can be reimbursed. Reports take time to make and the approval even longer. So getting your money back might take weeks or even months. This long reimbursement time can be stopped with the use of expense management software. You can submit your expenses through the system while or right after paying for the cost and have your money back when you come home from the travel. This is a great incentive for employees to do even better with their jobs. Knowing that they can get their money back immediately is one the biggest reasons why you should switch from manual to automated expense management.
With all the reasons mentioned above, you can confidently know that doing it right does not necessarily mean that you have to do everything manually and on your own. Getting a trusted software to help you in the day to day processes of your business will reward you with a lot of benefits. When you are tired of doing reports with spreadsheets, try using expense management software.
Tired of making expense management reports manually? Try using expense management software and reap the benefits. Visit CrowdReviews.com to read some reviews.
Trevor Price
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