Managing business travel expenses has become a big headache for financial auditors and procurement mangers. Not only is this time consuming but it also costs more for businesses. Identifying savings opportunities being the key responsibility for finance teams, organizations are turning towards automated expense management solutions from traditional in-house systems. However, many organizations are looking at direct costs such as airfare but not considering indirect costs. So, here are a few tips that help you figure out savings in your business expense processes.
Most organizations are overlooking the importance of reclaiming VAT on hotel stays. Getting the right information and VAT reimbursement from the hotel is important for businesses as it accounts for more. Relying on bills or traditional systems to reclaim VAT is not efficient and reliable as the processes may not go accurate. With expense management software, the process can be automated and all of the data can be reconciled in a single statement. Businesses are losing out potential savings by not investing in expense tracking software that would streamline all the processes.
Cost of Expense Reporting
Expense reporting process is costly, time-consuming, and not to mention, error-prone. The following are the major challenges for businesses:
- Processing expense reports
- Finding missing and inaccurate data
- Reimbursement and data archive
Taking the holistic approach
When you look at business trips, from bookings to check-in and billing to archiving, you have to get a clear picture on expenditure and savings. With the evolution of technology, business travelers’ priorities have changed and the policies you recommend should be more traveler-centric. Business travel has been influenced by the smart devices, which enabled individual business traveler to incorporate their spending habits into the business sphere. Deploying expense management software can assist business in making business trip a pleasure to employees while keeping track of every penny employees spend while on the business trip.