Pain Points of Manual Expense Report Management
Expense reports are one of the most exaggerating aspects of an organization. As the company grows, the number of expense reports also increases and expense fraud will cost you a huge money and time. Auditors in the finance department that need to audit expense reports face challenges in every phase of the reporting process. This would, in turn, result in inefficiency as employees need to file expense reports and managers need to review them.
Verifying Expense Reports Manually
With more number of expense reports being filed, auditors find it difficult to sit and manually match each receipt with the expense reports. Around 60-80% of reports are not fully reviewed, with at least one expense line item being non-compliant.
Constant Follow-up with Errors
Whenever there are any issues with expense report such as submitting non-compliant expense claims, missing receipts, and duplicate expenses, auditors will have to approach employees who filed the expense report and tell them where things went wrong. A massive waste of time for everyone involved in the follow-up process.
Expense Policies difficult to Read and Decipher
Many organizations do not put much effort in creating a comprehensive expense policy, but many people don’t know exactly what is compliant with the company policy. This causes a significant waste of time and money and the mistakes should get caught when auditors verify expense reports.
Overload of Expense Reports
As more expense reports get added to the list of pending reports, people start running out of time to complete the tasks. On the flip side, employees are wasting a lot of time filing expense reports, and figuring out common expense mistakes. This would end up costing you more and spending a lot more time.
Manual Processes are not Scalable
The goal of business entity is to sustain on a consistent basis. As organizations grow, there is an increase in the number of expense reports to be filed. Manual processes are too inefficient for auditors to process expense reports and finance teams should catch up the scaling ability of the organization.
Expense reports are one of the frustrating aspects of the organization, handling them efficiently is very important to the organization. Expense report software can help do that.
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