Whether it is a small or large enterprise, adequate cash flow is essential to run business operations smoothly. How effectively cashflow is managed can help decide the success or failure of the enterprise. SMEs have to take care of this aspect as they have a small bracket and are susceptible to financial pressures.
Corporate Travel Expenses go out of Control
Steady cash flow is essential, but, at the same time, expenses get high overtime. T & E constitutes the second-largest expense; this is because you might not know how much you are spending on corporate travel expenses with traditional paper-processes. In fact, around 80% of businesses rely on manual processes for filing expenses.
Getting rid of the manual system that required its employees to hold receipts for infinite time, and attach them to physically fill forms and wait for manager’s, finance departments, and HR approvals. This way of processing expenses gives no insight into spending patterns of employees since it was difficult to analyze using paper receipts and other documents. Another issue with the paper-based process is that it results in poor control and compliance, meaning it was susceptible for fraud.
How Automating T & E Management Helps?
Automating the expense reporting process offers a wide range of benefits, the most important ones are listed below:
Preventing cash and time leakages
Switching to robust and automated expense software ensures improved productivity and motivates employees to submit expenses on time. The expense reporting solution not only makes the complete process simple but facilitates easy accessibility, one-click approvals, and automatic payments – eliminating roadblocks in the reporting process. Besides time savings, reimbursements can be done faster than ever, letting your employees focus on the core tasks.
Visibility and monitoring
Expense management makes it easy to track employee spending in real-time. Analytics can help analyze the spend data and makes it easy to identify any leaks, thereby ensuring compliance with business policies. Spend can be capped at department, team, and individual levels, compliance can no longer be a problem.
As there is no manual entry, there is no scope for human errors. You don’t have to deal with estimates, and the accurate numbers will help you understand who’s accountable for and where the overspending happens.
When businesses know what their actual spend is, they will understand how much they spend with each supplier or how many employees spend beyond the limit. This data provides an excellent opportunity to get better deals with preferred vendors, which ultimately saves fraud.
Automated expense report software works wonders to help your company gain control over T & E spending while saving time, money, and effort.