Managing corporate travel expenses is the biggest headache for small-to-medium enterprises. New insights into expense reporting revealed that employees are feeling more pressurized for handling business expenses.
Number of hours are being spent in managing expenses, which can be spent on important business activities that would result in improved work-life balance. This is going to be a negative impact on business owners and the emotional wellbeing of the employees.
Around 24% of small businesses say that managing expenses and payments give them more stress, while about 21% say balancing cash flow keeps them up at night. For most business owners, bad habits of employees are causing a real headache.
SMEs have to spend over £4,000 per month on travel and expenses and over £5,500 per month on different types of expenses. Employees spending more on fuel and hotels and losing receipts were cited as significant issues. Employees using money upfront when they are traveling for work is one of the most significant pain points.
Around 50% of administration and support services say they are left out-of-pocket every month, while workers in the supply chain claim that they have experienced difficulties of being out-of-pocket. The way of handling expenses, waiting for reimbursements will have an impact on the individual’s health and fails to address the issue that has a significant negative impact on business productivity.
There is a pressing need for a corporate credit card for employees working with the expense reporting process. Around 26% of people say that cost savings, spend control, and ease-of-use are the key benefits they would look in the expense management process.
Around 39% of SMEs say that cashflow was an essential requirement when seeking business credit cards, while some feel to define payment limits for individual users. Expense management isn’t just a headache for businesses but has a severe impact on human emotions.
Expense reporting has adverse effects in terms of employees’ efficiency, productivity, and negatively affects business output. Leveraging the power of technology can transform expense policies, making it easy to administer and control employees’ spending behavior, while releasing much-needed cash flow into the business.
Corporate cards can prevent common problems such as reimbursement delays, enabling employees to pay for expenses whenever they have to, without using the cash. Additionally, this would benefit employees by giving them complete control over business spending.
Expense report software would help business owners and employees enjoy simplified expense reporting process while giving them peace of mind.