Whenever the finance team encounters a problem, they check through a number of forms and receipts to search fraudulent and exaggerated expenses that pose compliance risk. As this requires a lot of time and resources, many organizations simply accept minor errors and expense fraud. But, most of the problems are caused by reliance on traditional paper-based processes. However, the emergence of expense management solutions has changed compliance, providing finance teams new ways to avoid risk.
Here are a few reasons why compliance is a game changer:
Expense software transforms the reactive to proactive process in terms of compliance. The system will integrate an expense policy into employee workflow. Also, each claim will be checked against any breaches or problems. A compliance warning can be sent to the claimants through on-screen notifications, whenever there is a breach. Also, the system will alert the finance department to investigate the validity of suspicious claims. This way issues can be tackled before they become problems.
Managing and monitoring mileage expenses is a notorious job with paper-based systems, which requires you to rely on employees providing estimates for distance travelled. Digital systems allow you to track the distance of any road journey to be recorded through a smart phone application. It is a simple and easy way to get accurate mileage claims.
Accessing expense data anytime
Companies have to prove they have expense policy in place and right tools to monitor and enforce the policies. Automated expense software exactly provides this by collating the data required for the entire process, including any compliance checks. Companies that are subject to auditing and taxes can have proper checks and balances in place with expense software.
It can be seen how automated systems are helping businesses adopt a powerful approach to compliance. In fact, it is helping businesses fight against internal and external compliance breaches.