Receipts are vital aspects of the expense management procedure. How does a company handle all the receipts? Does receipt management cause an obstacle for your accounting and finance departments?
If you want to elucidate a mistake in the expense report, receipts are mandatory to do so. Receipts play a critical role in the business card reconciliation method as well. Also, it can be used to match the transaction records properly. You can recognize if there’s a difference between the bank statements and internal finance records.
Receipts help businesses maintain the right record and monitor all expenditures. It’s evidence to prove the incurred expenses. In the case of IRS tax audits, expense receipts are critical to confirm that the returns and deductions are feasible. Missing evidence of expenditure can suggest that your company isn’t serious about the finances. Plus, it may signify that the business is not trustworthy and the deduction/income is inappropriate.
Hence, handling receipts is a good exercise to make sure that your team remains audit ready. Here we present the disputes of outdated receipt management and how the challenges can be solved with cloud-based expense management software.
Challenges of Conventional Receipt Management
Almost every organization has faced challenges with handling receipts. These receipts are hard to manage as they can get lost and damaged easily. For the workers, it could mean a delay in expense reporting and lose out on reimbursement. For the finance team, it could create a problem while remaining audit ready.
A few of the major challenges are:
a) Receipt storage so that it isn’t misplaced
b) Ensure paper receipts aren’t damaged
c) Easy access to certain receipts
Managing Receipts with Modern Technology
As businesses evolve, handling staff receipt can become daunting. Your team needs to ensure the expense reports are policy compliant. All the receipts need to be organized, stored, and handled carefully. It becomes a time-consuming ordeal while leveraging old means of receipt management.
While talking about the hindrances the receipt management can be to a company, developers have provided the best solutions. It has led to technological advancements like receipt management applications, scanners, and expense management solutions. Such updates powered by automation aid you in streamlining the procedure of handling receipts.
Here are the unique advantages of evolution.
1. Unlimited Cloud Storage for the Receipts
While the workers submit physical corporate receipts in a large volume, it can be daunting to monitor all of them. The team members can lose track of the submitted expense reports. The receipts attached to reports can be lost, tampered, or mishandled.
With an automated expense management system, the users can get unlimited cloud storage. The feature takes care of the bulk receipts and reports. These reports can be handled and stored in a unit. It eradicates the possibility of losing expense records. Storing all records in the cloud indicates that the records can be accessed from any smart device and anytime. It makes accessing reports simple for the team.
2. See and Monitor Records of Corporate Expenses
The conventional process may prove to be inefficient when there’s a considerable number of invoices, receipts, and records to handle. Monitoring all the expense records and accessing them becomes challenging.
Online travel and expense solution helps to store the employees’ expense records in a centralized location. This storage ensures easy access to the receipts, business credit card statements, and transaction statements. The solution provides users the flexibility to find receipts based on expense category, date, name of the employee, place, and much more.
Such information in the expense report can be checked and approved under a single window. Plus, if the expense reports are pending approval and reimbursement, the activity can be carried accordingly.
3. No More Delays in Expense Reporting
When staff makes a corporate-related expenditure, it can become difficult to monitor the receipts. Plus, with all the obstacles involved in the expense reporting, it can become postponed. Hence, as a result, the receipts can be misplaced and tampered. This will cause a delay in submitting the reports. Unreported expenditures can result in inappropriate spending trends.
The receipt scanning feature helps workers to capture and scan receipts on the run, and the reports can be submitted from the mobile application directly. The reports can be safely stored, preventing damage. Plus, the expense can be reviewed for policy violation, eradicating back and forth.
The receipt scanning tools encourage expense reporting on time. It results in the reimbursement process taking place seamlessly and quickly. Real-time policy checks make sure that your company doesn’t spend long hours going through the receipts. It gives the finance department the time to spend on activities that are critical while remaining audit-ready all the time.
Expense reporting solutions have made handling, organizing, monitoring, and viewing receipts a seamless method. Various features, such as centralized storage and seamless cloud access, aid you to organize and maintain the receipts in a hassle-free way. Plus, all these perks of an advanced application make sure that everything is intact, and the team remains ready for audit.