Compliance with corporate policies and low processing costs constitute an efficient expense management solution. Corporate travel policy compliance is difficult to achieve with limited visibility into expenses. What’s needed are real-time updates on spend patterns within organizations and consistent reporting.
Tracking expenses is easy with software because updates are received in real-time. Expense management solutions help organizations keep tabs on corporate spending while at the same time improve compliance and visibility issues. Businesses can enforce policies more effectively by automating expense management. Managers can help employees align with corporate objectives by providing a mechanism to report expenses on-the-go. This saves management valuable time having to wait till the month-end before matching each receipt for compliance. Best-in-class companies are able to reach 87% compliance in T&E through the use of automated expense solutions. Organizations that don’t make use of automation tend to spend more on processing a single expense report (Around $30 as opposed to $18 for those that did, Aberdeen, 2011). Automation will push business travelers to adhere to company agreements while on the road, enabling better visibility into aggregate T&E spending across departments. This aspect of expense management also helps firms set aside a definite budget to finance all their travel needs, making the system cost-effective and streamlined. Best-in-class could leverage expense solutions to maximize savings and improve spend vision.
For growth to take place, companies need to focus on competing markets and be able to collaborate effectively with bigger firms. Interaction with the big players means scaling existing infrastructure in order to communicate effectively. Business tours help organizations expand their reach and find new opportunities. Expense solutions help plan business travel better. Knowing the current budget is one thing, estimating future budgetary requirements is a whole different ball-game. Expense reports will be regarded as variable costs if management fails to regulate expenditure. Because corporate expenses account for the second highest spending after payroll, automating expense reports is a good way for businesses to build momentum and reduce complexity with growth. Organizations should consider online expense reporting as a long-term strategy. This helps sustain growth.
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