Disrupting existing processes has become a trend these days. As we’re seeing rapid advancements wireless and mobile technology, most of our personal habits are changing. Businesses are not privy to these changes. There are technological suites available which aim to transform every process involved in business management.
Employee expense automation is one such solution that promises to provide a lot of benefits for minimal cost. But is it wise to rock the boat and move away from paper or excel based expense reporting and reimbursement processes? Since they’ve been working well for decades, why would businesses move away from such established systems and opt for automated expense management?
Manual reporting is a cumbersome task that most employees put off till the last minute. With automation, digital expenses could be reported automatically while cash expenses can be reported in seconds. These reports can be made on the go. Employees don’t have to take time off their work to report expenses which increases their productivity. They’re bound to report more often and more accurately through automation.
Companies that employ business expense automation are able to process expense reports and reimbursements 7 times faster compared to manual methods. Automation makes the lives of accounting and finance team much easier. Because of better data and much lower possibility for errors, verification happens almost instantly and the finance team could focus on other tasks they’re responsible for, even during the expense processing period.
Manual expense reports used to involve a lot of paperwork. From paper bills, expense vouchers and spreadsheets, managers and finance had to go through a plethora of reports to approve, verify and reimburse business expenses. Since with automation, everything happens digitally, there is no paperwork involved in the entire process. Apart from being much easier to view and process, businesses also save the cost of stationery by switching to automation.
No cash leakage
Businesses may experience cash leakage during the reimbursement cycle when they follow manual processes. Employees often over-report business expenses or report the same expense twice. Such frauds cost businesses around $1 billion in 2015. Businesses have found that automation was capable of almost reduce such fraudulent reporting and eliminate cash leakage from the system.
Though most businesses have an elaborate employee expense policy, enforcing these policy rules is very difficult while using manual expense management processes. Accounting/finance teams have to manually compare each expense on each report with the expense policy that’s applicable to that particular employee. In mid-large organisations where hundreds of such reports are filed every expense cycle, policy violations may slip through the cracks much more often than it’s deemed acceptable. Through automation, businesses could integrate their expense policies in the solution itself, and ensure every report complies with their guidelines.
Automated expense management has been proven to be a great way to cut costs without having to compromise. Businesses who employ expense automation have witnessed between 4-17% savings on their annual spends. This is because, not only does automation helps productivity, and compliance but it provides businesses with actionable real-time data which helps them to plan ahead. The reduced cost of stationery and it’s environmental benefits are just an additional advantage.
Although, manual expense management processes have worked in the past, many businesses today have realised that they are missing out on a lot of benefits without automating their expense management processes. Happay has enabled business expense management automation to over 3500 companies. To learn how automation could help your business, click here.