Team Happay
By: Team Happay
Published on: April 13, 2015

The major reason why companies haven’t made the switch to automated expense reporting solutions , is because they believe that their current processes work.

What they fail to realise is that, when expenses are manually reported and accounted for, there are a number of problems that crop up, that lead to a loss of time and added cost for the company.

 Stop Reporting Expenses Manually, You're Doing It All Wrong!

1. Manual data entry means errors

For each expense report to be processed completely, the same set of expenses have to be entered twice – once by the employee – while creating the report and then by the finance team – while entering data in the company’s accounting software .

Average error rate in manual data entry is 1.5%, which means for every 100 entries, minimum of 1 is incorrect (which goes unnoticed initially). This error percolates deep into the balance sheets and takes HOURS to be debugged by the accounts team, when pointed out by the CFO. Have we ever accounted for these hours lost in managing manual processes?

An end-to-end automated solution comes at a fraction of the cost, but guarantees accuracy.

2.  We are human – we will lose receipts. 

Employees hate expense reports because they always find it hard to get their receipts in order. Even if they do store the receipts properly, the data on the receipts is not visible after 10 days, so it’s as good as having no receipt.

Since your company policy doesn’t allow submission of reports without supporting documents / receipts, employees either end up losing money or may have to resort to fake receipts with fake amounts.  [10-15% expected leakage for the company]

How about a mobile expense reporting app for your employees? An app that enables them to click a picture of the receipt after every transaction and submit it automatically to the accounts team!

3. Policies- as if tracking expenses was not tough enough!

Manual expense reporting processes make it difficult for finance teams and accountants to track policy violations.

Accountants have to physically match expenses with receipts, spend substantial time in identifying out- of-policy expenses and then engage in repeated discussions with the employee to get the case resolved. This process is tedious and time consuming.

Also, if they mistakenly miss out on any out-of-policy expenses, then the company ends up reimbursing more than what is required, which is nothing but an added cost to the company.

Checking 25 policies for each expense submitted by  employees – that’s definitely a software’s task!

4. Lack of mobile support for employees on the road

Imagine having to run to your laptop or desktop every time you need to draft your expense report? Such a pain, especially if you are a sales person out on the streets for most part of the day and have to file the expense report end of day. This is exactly the problem with manual expense reporting. There is simply no support on mobile. 

With an expense reporting mobile app like happay, employees can use the time spent in travelling between meetings to submit reports. Why allocate those precious hours in office on filing reports when you can use the same time on core tasks that matter?

Also, do you realise the amount of time your employees and finance teams would save every month if you switched from manual expense reporting to using automated expense reporting solutions?

According to the statistics, it is 43 precious hours per month! That’s because you spend an average of 91 minutes filing an expense report manually while you spend only 5.5 minutes through automated expense reporting solution, like Happay.

It’s time to take a call between saying “We’ve always done things this way” and actually getting down to doing things the smarter way.

Sources: 1 2

Still using the age-old expense reporting process? Well, it’s not too late to move to a smarter and automated solution.

Eliminate all issues of manual expense reporting with Happay’s automated, paperless and mobile expense reporting and expense management solution.

The major reason why companies haven’t made the switch to automated expense reporting solutions , is because they believe that their current processes work.

Team Happay on FacebookTeam Happay on LinkedinTeam Happay on TwitterTeam Happay on Youtube
Team Happay
The editorial team at Happay puts together curated content that helps Indian SMEs and Enterprises take control of business payments. We create content on a wide array of topics from B2B payment trends and spend management best- practices to real-life case studies of how CXOs of different organizations use automation and mobility to manage business spends more effectively.

Leave a Reply

Your email address will not be published. Required fields are marked *