Expense management is one of the biggest challenges of a growing business. It may be due to trivial work procedures that fail as your business grows. Figuring out the best ways to manage and monitor employee expenses is not usually on the priority list for companies.
When an organization is small, the expense set up may seem minimal. This is viewed as a fairly mundane task, which is why many businesses will rely on the traditional set ups. They use a manual system for recording employee expenses and business costs. Relying on paperwork means the information is manually transmitted through the system
Flawed Paper-based Systems
Working with paper-based systems means a slow and inefficient method of getting things done as the finance teams face a wave of claims that need to be processed by hand. When organizations scale up, the finance teams become busy struggling with paperwork leaving no time to properly monitor expense claims. Additionally, companies have to ensure costs are legitimate and comply with the complexities of HMRC tax regulations. That’s why it is important for any company to have an expense setup, which meets the demands of today’s business environment. Cloud-based expense report solutions do that.
By converting paper receipts into a digital form, you will not need to rely on manual procedures. Switching to an automated solution will speed up the process and improve the processing time by 25%. With repetitive tasks being automated, the finance teams can focus on policy enforcement and cost management. With automation, you can gradually fight workplace fraud.
Choosing an expense solution that has the flexibility and scalability to grow with the company can help manage expenses of a global company. While expense management does not seem like a high priority for growing company, it is one of the areas that does pay-off in the future. Traditional expense management is one of the things that no longer work for modern businesses.