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How Corporate Cards and Reconciliation Redefine the Expense Management Process

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Time, effort and money are three key aspects for any company. All of these should be given equal importance to make the company succeed. But when you handle the expense reporting process manually, you need to invest a lot of time, effort and money, which is a big no-no for most companies. The future of expense management can be defined with three factors-Automation, real-time visibility, and analytics. Currently, the expense management process works as follows:

  • Companies give cash advance or employees spend from their pocket
  • All expense receipts should be stored
  • When submitted, finance department enters the data in spreadsheets manually
  • Prints expense report
  • Attach receipts to the report
  • Submit expense reports to the finance department
  • Finance department reconciles expense reports with receipts
  • Enter expense data into the accounting system manually
  • Employee gets reimbursement

In the above procedure, businesses face some challenges such as:

  • 42% of employees lose receipts
  • 25% of expense reports will be filled with error-prone and incomplete entries
  • 28% of employees spend out-of-policy
  • 47% of employees do not submit their reports on time
  • 47% of excel sheets are not easily reviewable
  • 29% of manual reports are not easily accessible
  • 50% slow reimbursements

When cash is used, the following are the a few challenges that companies face:

  • Difficulty in monitoring/tracking cash expenses
  • Risk of fraud
  • Employee needs to wait for reimbursement for long periods

When expense management process integrates with corporate cards, companies can eliminate the hassle of cash, receipts and spreadsheets. Corporate card integration fully automates the expense management process from purchasing to accounting, thus giving companies real-time visibility and control over entire spending. Corporate card integration makes your expense management a three-step process

  • Employees spend expenses with corporate cards and then capture the expense receipts
  • Managers approve expense report
  • Finance department verifies expense reports and imports data into accounting

When your corporate card integration is in place, everything can be automated and operated with ease, thus simplifying the process of expense management. There is nothing much difficult to do with a corporate card-you just need to configure card number into our system. You will be receiving notifications whenever a transaction is made. In this way, you will be able to know all the transactions your employees make, thereby reducing the risk of fraudulence.