Organizations are not reaping significant benefits out of employee travel and expense (T &E) management. This is not because of lack of corporate policy, but due to lack of automated solution. Often employee expenses are administered for policy enforcement, which is costing companies real money. It is observed that if the policy is consistently applied with automation, the ROI of T & E increases. There are three main benefits of automated expense report software:
Expense Automation Implies Policy Compliance
Despite having a travel and expense policy, non-compliant spending is fairly high in most companies. Internal compliance ensures that purchases remain with an approved channel, which drives savings through volume discounts and spend consolidation. If the finance department doesn’t figure out the expense violates the company policy until the review phase, that out-of-policy expense can go unidentified.
Expense report software can solve this problem by flagging exceptions at any point of submission. This would not only enforce expense policy in real-time but also communicates the policy clearly to minimize future violations.
Corporate Cards are Efficient Purchase Strategy
Corporate cards are another powerful cost control mechanism. Most out-of-policy spending happens when you allow employees to spend on personal cards. Combined with automated expense report solution, corporate cards can reduce the cost of expense processing. Also, this would reduce the expense processing cost and minimizes the risk of fraudulent expense claims. The automated accounts payable solution will significantly lower transaction costs while eliminating the need to review every invoice manually.
Automation Cuts Direct Processing Costs
Automation doesn’t just enforce policy consistently, but pushes transactions through a monitored purchasing channel and enables a simplified level of reporting. Having a modern expense solution that takes the complexity out of a complicated process can help get the work done faster and in a simple manner. With an automated solution, approvers can review the claims intelligently – focusing on what matters to the company.
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