New Year, New Resolutions for your expense management
Every January most of us will make a pledge to make changes to our lives for the coming year, both in our personal lives, and work lives. One common resolution amongst business travellers is to tackle expenses in a timelier fashion rather than leave them piling up in an office draw! Automating expenses in your organisation is an obvious solution and one that significantly drives efficiency, saving time for managers, business travellers and the accounting team!
Expense management continues to be an area that is outdated and riddled with oversights. The average company correctly audits between just 2 -10% of its expenses – a shocking reality when occupational fraud cost companies $7billion worldwide in 2017 alone (ACFE Report). According to Forrester Consulting, two-thirds of SME financial decision makers claim managing expenses is their top concern. Too many companies still use Excel spreadsheets, failing to invest in the tools necessary to speed up the process. This is often to the detriment of employees who feel the brunt of it from being left out of pocket. Automation can make a vital difference and in today’s mobile world, managed easily on the go.
So, as well as the obvious gains of saving time and money, what are the other less noticeable benefits of automating your expense management process? We look at some of the more hidden rewards which will all help deliver savings to your bottom line.
- Automated expenses: Reducing workplace fraud
UK companies continue to lose around £100m each year in falsified and exaggerated claims, this is a big concern for financial directors. Automated expense tools stop this practice through ensuring each claim is filed with a receipt to show proof of purchase and can be done at point of purchase, avoiding any confusion in the future.
- Automated expenses: Mastering mileage costs
Automated expense tools solve the problems posed by one of the trickiest areas of expense management. With automated processes there’s no longer any need to rely on mileage “guesstimates” automated tools work this out on your behalf.
- Automated expenses: Smarter mobile working
With the rise in flexible working, expense management systems have the flexibility and scalability to match. Road warriors and home workers alike can complete their expenses forms whilst on the go through their mobile, tablet or desktop.
- Automated expenses: Reporting and visibility
Automating the expense management processes transforms the abilities of a finance team when it comes to collating vital information and detailed reporting. The data captured can fundamentally change the way costs are reported and managed.
- Employee duty of care
Ensuring employees are reimbursed in a timely manner, removing the financial strain and worry from employees is vital. Recent research conducted, shows that late or delayed reimbursements has a negative impact on employees’ personal finances. Perhaps unsurprisingly it’s the 18-24-year- olds who are worst affected with a quarter of those surveyed unable to pay off credit card bills.