Many organizations still follow and maintain excel spreadsheets, paper receipts, and printed reports for managing business expenses, and as a result often encounter fraudulent activities and various inconsistencies adding to lots of hassle.
Employees travel on business trips, conduct meetings with clients, and after returning, have to file their expenses and submit bills.
For a fast-moving technological world, this is inefficient and surely obsolete. But, companies are moving to break this chain of manual processes and explore the new world of automation.
Automating the expense management process will help eliminate any problems businesses now face so they do not need to worry about the hassles of expense management being performed manually, and can focus on their company’s scalability and profitability.
Listed below are reasons why automating expenses are necessary:
Saves Time and Improve Workflows
Waiting for hours for your manager to approve your business expenses is quite common and is also a waste of time. With automating the process, approval workflows are built into the system automatically. Managers receive notifications when an employee submits expenses and can approve it on the go.
Eliminates Frauds and Errors
Manually entering data can be prone to errors and fraudulent practices such as unreasonable costs, and more. With expense tracking software, employees are restricted from entering any incorrect data into the system or out of policy claims thanks to pre-populated or customized fields.
Negotiate for Volume Discounts
The expense management software can store employee data for hotel lodging during business travels. The organizations can analyze this data and determine how much the company is spending on lodging and thus can negotiate with hotel chains and other vendors to get volume discounts. This implementation will help companies reduce their lodging costs and save money every year.
Claim Tax Returns
Many times while and after submitting expenses as hard copies or spreadsheets, employees fail to notice if they are entitled to any tax returns. An automated expense management software can be designed and implemented so that during bill submission, it notifies the employees that they can claim returns on certain categories of expenses and thus helps in the yearly tax savings.
The Bottom Line
The expense management processes should not be labor intensive or cumbersome. Automation will make the process simple, quick, and transparent so companies will be able to control their organizations expenditures better, and increase productivity.