Determining whether your company is outgrowing travel and entertainment (T & E) expenses requires you to spot risks while managing your business. As the organization grows, you will be experiencing increased stress in managing internal processes and fault-lines can develop gradually. Expense management is one such susceptible area that starts simply as an administrative task and turns out to be a big drain on resources.
Businesses that are reliant on traditional expense setups are at higher risk compared to those that use automated expense solution. Unlike digitized solutions, paper-based spreadsheets don’t have the flexibility and scalability that is required to handle the demands of an organization.
So, are the warning signs that your company is outgrowing its expense setup? Let’s take a look at some of the common expense setup red flags:
Longer processing times
The bigger your company is, the more expenses you will have to handle. With each claim being processed manually, it creates a flood of paperwork for the finance teams. As time flows, information gets logged as expenses take weeks or months to go through the system.
Level of loss
With more time spent on processing expense claims, less time is being spent in properly monitoring the process. Manual processing creates an environment where workplace fraud can thrive as exaggerated claims go unnoticed.
Problem with numbers
Not just expanding your company will add up more problems, the complexity will be created when information processed manually is stored in spreadsheets, thus keeping data in sync becomes a problem.
Coping with compliance
With spreadsheets, it becomes difficult to ensure that expenses comply with external legislation. This becomes a problem when the need to audit expenses for tax compliance. Additionally, overlooking tax norms will add additional costs to your business.