As Travel and Entertainment (T & E) expenses represent around 10-12% of company’s overall expenses, businesses are increasingly realizing the importance of having expense report software in place. Lack of visibility into business spending, lack of control, high processing costs and lengthy reimbursement times are some of the biggest problems businesses face with respect to T & E expense reporting. Businesses are realizing the benefits of switching from manual processes to an automated solution. Organizations that use automated expense report solutions for T & E management also witnessing greater RoI.
Moving from spreadsheet-based expense reporting system to a web-based solution brings in many benefits, mostly costs. As per 2016 Paystream Advisors study, the cost of processing expense reports manually is $26.63 and with automation, the cost will be reduced to $6.85 for each report.
Employees have to take time off their work to report expenses on spreadsheets. Also, they have to collect each receipt and file them with the expense report. Mobile expense management solutions allow employees to report expenses by just scanning the receipts on their phones while on the go.
The expense report process is a part of T & E management. Creating travel itineraries, requesting approvals, booking tickets may result in inefficiencies in business processes. The pre-trip approval process can monitor employee spending and control T & E expenses before they incur.
SMEs and large businesses should have expense policies to be enforced diligently. Manually examining each expense as per the expense limits defined in each category is practically impossible. As travel and expense solution integrates with expense policies, it becomes easy to figure out reports that don’t comply with the policies. This allows companies to effectively enforce travel policies.
Decreased Reimbursement Time
Manual expense reporting, verification, reconciliation and reimbursement process is costly and time-consuming. Businesses would take 10-15 days to process reimbursements from the expense submission date. Automation would reduce the reimbursement cycle time considerably over time.
Businesses use ERP and accounting software solutions to keep track of the organization’s assets. Companies are going with T & E management solutions that can be integrated with existing ERPs so expense data need not be manually entered into the system. This alleviates the need for data entry into finance and accounting systems. Companies can also integrate with other travel services such as Ola, Uber to make the booking process easy.
With travel and expense management solution, businesses can see revenue that exceeds the expectations. Expense report software can shorten reimbursement cycle time, decrease processing costs, gain valuable insights into spending, increase visibility into expense processes. Travel and expense management software turned out to be a must-have solution for businesses of all sizes.