Inefficient expense management system can leave a huge impact on accounts payable, finance, and employees. The following are some of the common problems your organization will experience due to inefficient travel and expense management system.
Toting Around Paper Receipts
Every employee will experience the problem of losing a receipt or misplacing it somewhere. Employees have to sit with piles of paper as well as emails to get receipts and check credit card statements; this takes up even more time in searching and submitting appropriate receipts.
Employees are not aware of what happens to their expense reports once they submit. The reports could be in the waiting phase or been rejected because of certain reasons. AP department doesn’t know the status of employee reports without doing a lot of digging, which adds even more workload. So, employees keep on asking the finance department, which frustrates both employees as well as the AP department.
Lot of Rejections, Employees Keep Waiting
Reasons are many – expense claims are not within the spending limits or submitted duplicate expense claims, missed receipts and so on. You can’t put policies in front of employees when they need and there would be no time to explain everybody why their expense report was rejected. This frustrates employees and keeps them waiting for reimbursement.
Maybe your company has metrics for corporate card spending or how long it takes to get an expense report submitted and approved. You have to consider all these things before submitting expense claims. Every company has a different set of rules in place, so understanding these rules and enforcing them manually becomes a problem in real-time. Deploying an automated solution such as SutiExpense can help sort out expense management challenges.
Cost Saving Initiatives
Without analytics or visibility into expense data, you can’t make better decisions. Shutting off corporate travel is not a good idea as it will reduce business expansion. Analytics will give you real-time insight into spend and corporate travel so you can understand the patterns of company spending. Likewise, you can make informed decisions pertaining to corporate travel.