For many employees, corporate travel has become a significant part of life. Today, more than 45% of organizations have a labor force that travels at least one week per year. The rest 28% of companies noted that their staff travels at least four weeks every year.
With so many business-sponsored trips taking place, managers and corporate travelers should have an easy way to monitor and report their travel costs. This is where a robust expense reporting solution comes into play, streamlining the lives of your employees and travelers.
Read on to learn the key reasons why organizations are switching to expense solutions.
1. Minimizing Operating Expenses
Travel can be costly, and these costs can exponentially increase for longer trips. Many organizations process almost 500 expense reports each month, whereas, others process as many as 2,700 reports every month. When you consider the total cost of an average of 42.12 dollars to process an individual expense report manually, the price of not automating your business travel solutions becomes significant.
Today, the major priority among corporate leaders is to minimize company expenses as much as possible. The best strategy to implement in this case would be to leverage cloud-based expense reporting software. This type of technology will help minimize the cost of processing a report down to an average of 7.13 dollars, thus saving financial resources which can later be put toward mission-critical initiatives.
2. Quick Employee Reimbursement
From an employee’s viewpoint, one of the most crucial challenges with business travel is the time it takes for an employee to be reimbursed. Even when a company pays up-front for hotel stays and airline tickets, the employee is usually still responsible for daily expenditures. When they are not reimbursed quickly, employees can become dissatisfied very easily.
Late reimbursement is one of the major challenges for most organizations today. Online expense software helps streamline the entire reimbursement process by making it simpler for your staff to submit their expense reports on time.
With an expense management tool, staff members can access the platform through smart devices and upload receipts from anywhere, any time. It signifies there is less chance for a receipt to being lost or misplaced. Employees submitting reports without any delay and being reimbursed quickly will continue a good relationship with your traveling employees.
3. Aligning Expenses with Travel Policies
A corporate travel policy lays the foundation rules for everything from travel booking to employee reimbursements. It also makes sure that travelers and their organizations stay on the same page.
Travel policies are crucial in tracking and reporting expenses, along with paying workers back for the money they spent on business trips. Previously, it was difficult to align expense reporting practices with travel policies. More than 49% of companies say that they need to increase compliance when it comes to traveling employees.
An electronic expense reporting tool helps you alleviate these problems, from inputting receipts to tracking all other company expenses. The expense management solution makes it simple for employees and their managers to remain in step with essential policies, like reporting schedules and per diem amounts.