Most companies often face several challenges when it comes to expense management. Let us take a look at some issues that are going to impact the expense industry. Here are the key trends that impact the expense industry in the upcoming years.
Realize that Corporate Credit Cards can Control Fraud
Expense fraud is a continuous challenge for many businesses, particularly if the fraud goes undetected. While expense report systems can avoid a significant amount of fraud, there are some scenarios where employees can bypass the detection system.
Out-of-policy expenses include over-ordering office supplies, buying an expensive unrestricted plane ticket, and spending money on personal purchases.
Mandating employees to use a corporate card for spending eliminates fraud in two ways. First, it provides 100% reconciliation of spend and prevents reimbursements for fraud. The second benefit is when the corporate card is used for purchasing, giving cash advances can also be avoided. Fraud prevention capabilities of the corporate card can help avoid the prevalence of fraud.
Shift your Focus from Compliance to Spend Optimization
Corporate travel and expense management has focused on cost control and compliance, but now the focus should shift to reducing the time on expense submission, approval, reimbursement and streamline corporate travel spend by strictly enforcing policies.
With Optical Character Recognition (OCR) technology and smart business rules, the time spent on expense submission and approval process is significantly reduced. Infact, many organizations can optimize their travel spend while providing greater flexibility to travelers to plan their itineraries. Instead of minimizing spend; make sure that employee expenses are delivering expected business benefits.
SutiExpense allows businesses to allocate expense spend to various clients, projects, and departments within their organization. This helps you to effectively measure spend versus revenue generated.
This would allow sales and finance departments to make smart decisions on budget planning and determine in which spend types you have to invest more. Also, data analytics continue to help travel and expense departments to get a deeper insight into spend.