Employee expenses are often an essential part of running a business. Many will look at the cost as the face value of the expense, but often are unaware of the hidden costs that these expenses reimbursement process brings. The overall cost of processing expense claims can escalate to a surprisingly large number.
The traditional paper-based methods of expense processing are starting to look a little outdated with new automated, cloud-based systems available.
So what are the savings that can be made by switching to these methods?
Mistakes happen and as the saying goes “you’re only human”, however, these mistakes can prove to be costly and putting preventative measures in place will help you and the company in the long run. One avoidable expense mishap is duplicated expenses, whether employees have mistakenly submitted the same expense twice or have intentionally submitted a duplicate, your company may be spending much more money on reimbursement than they should be. Unfortunately, when it comes to using manual processes such as spreadsheets spotting these mistakes becomes nearly impossible. That is where employing robust software that will automatically flag any duplicate expenses is essential.
In addition to spotting duplicate expenses, automated solutions make it much easier to enforce policy compliance. You are able to set expense limits for certain categories, expense limits for out of pocket expenses and much more. This means that you have tighter control over how much your employees can spend. If your employees are ever out of policy guidelines then this will be flagged up and managers can spot any mistakes or possible fraudulent expenses straight away.
Manual processes are inherently long-winded meaning that the time spent on creating and submitting the expense, approving the expense and even processing the expense is taking time away from employees doing more worthwhile tasks. Some companies end up having entire departments dedicated to processing expenses. We recently asked some of our customers what was one of the best results they have achieved from implementing a custom build mobile expense solution we built for them and a common answer was that it was allowing their staff to get on with their actual work, while they approve on the go. Implementing a quick and easy-to-use system that takes away all of the manual data entry frees up considerable time for your employees. Additional features like tracking location and auto credit transfers via banks is a cherry on the top.
Do you claim GST back on your expenses?
If not you have been missing out and if so you will know how complicated it can be. Without the use of automated solutions claiming back can be a real headache for your finance team. It is hard to fully quantify but when you start to see the cracks in an old expense system it is easy to see how time and money quickly gets lost. Companies invest massively in improving and refining other processes so why not take this approach to your expense management too.