outdated expense reporting

Is Your Business Travel Expense Policy Outdated? It Could Be Costing You

Managing business travel expenses is no easy task, especially if you have dozens or even hundreds of travelers on the road at any given moment. Your expense management procedures should be clear, concise and up-to-date. This means using technology to your advantage, offering employees easy-to-use expense management software that ensures efficiency and accuracy.

If your company’s expense management involves outdated, manual processes, you’re missing out on time and cost saving opportunities. Here are some of the business implications inefficient expense management could have on your organization.

Manual errors

If your expense processes require a lot of back and forth between the employee, the employee’s manager and the finance department, the process can feel tedious and never-ending, and leaves room for human error. One misplaced decimal point on an Excel spreadsheet can mean a lot of money lost for your organization.

Frustrated employees

A frustrating process leads to frustrated employees. If your expense reporting process is long and tedious, employees may choose not to follow the guidelines set forth for them. Even worse, they may let expenses pile up simply because they don’t feel like dealing with the steps involved in submitting them. This can lead to costly delays, can make reconciliation difficult and may have a negative impact on the company’s cash flow.

A longer process

With a more manual process, your employees may have to wait longer to receive their reimbursements as there may be delays with manual approvals or paperwork. When employees experience extended waiting periods to be reimbursed for out-of-pocket expenses, it can lead to unnecessary frustration.

Wasted time

Simply put, a manual process takes longer than an automated one. Submitting expenses may take days, manual approvals can hold up the process and time may be wasted looking for misplaced paper receipts or other paperwork.

A lack of data

An outdated expense management process is sure to provide little, if any, data that can be used to keep a pulse on employee spending, analyze trends and make process improvements as necessary. Without this type of data, your company can easily miss out on valuable savings opportunities.

Additional costs

A manual process means that a person is sifting through receipts and paperwork, soliciting approvals, inputting costs into a spreadsheet and more. All of this takes up an employee’s time and therefore, costs you money. When looking at the amount of time it takes to process just one expense report manually, you will most likely find that an automated software will help you save money in the long run.

If you’re ready to revamp your business travel expense policies and procedures, we have the solution right for you. Give us a call to get started.

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Proper expense management is a crucial part of a successful corporate travel program.

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