- Get ahead of everyone and automate to optimize
Several businesses are unaware of the importance of an expense management system until they are knee-deep in accounting and tax documents. They frequently handle expenses by hand and rely on paper receipts, easily misplaced.
Hence, let's look at some of the clear indicators for you to recognize the need for an expense management solution.
FROM THE COMPANY'S SIDE :
1) Unable to deal with increasing volume of expenses.
Expenses will only rise as your team expands and new initiatives begin to take off. If you're drowning in paperwork, it's time to consider an automated solution. You'll be able to reduce manual work while saving time, money, and resources.
2) You've lost track of your company's financial information.
It is too easy for a business owner to overlook the necessity of tracking spending. However, if you don't know where your money is going or what kind of return on investment (ROI) each project has given you, it will be challenging to determine which areas require additional funding support.
3) You are always late in reimbursing employees.
Your employees are obligated to fill out expense reports and receipts, but you will most likely be doing this for them unless you have a better system in place. You won't have to spend as much time reimbursing individuals for costs in cash or by check this way. Using an online system that everyone can access can make your life easier.
4) Concerns about data security
Mistakes in inputting or submitting costs, misplacing receipts, allowing non-compliant charges to slip in, and other issues arise when using manual expense management systems.
5) Problems with Reconciliation
A Travel and Expense Policy will specify how expenses are categorized and handled. In the absence of a policy, reconciliation issues occur because various departments may classify the same type of spending differently. There may also be issues reconciling employee expenditure reports to third-party vendors like travel agencies and booking platforms.
FROM THE EMPLOYEE'S SIDE :
1) Employees are unsure about their roles and duties.
Employees who travel without a proper documented Travel & Expense Policy are unsure of the processes they must follow. This can lead to problems. For example, they may not keep track of their expenses, which is a necessary step in preparing a trip expense report.
2) Employees are unsure about the sorts of changes that are permissible.
Employees must also be informed of the sorts of costs that are reimbursable. They are entitled to reimbursement for expenses incurred when traveling on official corporate business, reasonable and expended.
3) Excessive time spent on expense reporting
Employees will lose a lot of time if they continuously ask colleagues how to prepare their expense reports. However, a digital travel cost management solution may eliminate mistakes and make expenditure reporting less tedious.
4) Employee deception
According to some estimates, "bogus travel and spending records account for 15% of all corporate fraud." This worrying percentage can be decreased by implementing a Travel and Expense Policy that stops dishonest workers from claiming ignorance/exaggerating expenditures.
One method of combating this type of fraud is to replace reimbursements with a per diem system. A 'per diem is a set payment paid to cover or reimburse 'travel expenditures,' such as transportation, meals, and lodging.
TrackEx allows you to streamline the per diem expensing process by fixing daily allowances for traveling employees as per company preferences or using default country rates using the TrackEx per diem module to ensure full compliance with tax regulations. From scanning receipts on the go to sending expense reports – get all done in one tap at TrackEx.
Save up to 70% of your time and more than 20% on your travel expenses.
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