3 Major Issues which can make Expense Management a Chore for your Business

Monitoring the expenses associated with processing, paying, and consolidating a business is crucial for its success. In fact, the expenses of the company can directly impact its bottom line. Quite interestingly, a large number of companies are still reliant on the old-fashioned methods of managing and monitoring expenses. You can easily find many organizations which still rely on spreadsheets and an envelope full of receipts. No doubt, this manual process of recording expenses is inefficient and outdated. Whether you are a large-scale organization or a start-up, it is important to possess a payment and consolidation process that complies with your company’s needs.

Employee expense settlement is a tedious and challenging process for both the company and the employees. Usually, every organization implements specific guidelines which need to be adhered to. In a majority of the cases, collecting data and submitting it to the accounts department is a cumbersome task.

In the absence of an automated system, the accounts department has to verify the claims manually. These tedious procedures justify the requirement for an automated expense management platform. With these things in mind, let’s take a glance at the top things that can make expense management a chore for your business.

Fraudulent Documents

To be precise, in the absence of an automated expense management platform, expenses can be forged. Moreover, you will also encounter the rise of fake bills among your employees. With expense management software, the organization can set policies that make capturing and supporting expenses made by employees compulsory.

In short, it eliminates the apprehensions about a false reimbursement. Apart from fraudulent documents, a complete lack of control can also emanate in the absence of an expense management software solution.

As most finance teams will tell you, the absence of pre-defined expense limits and the requirement of completing expense reports are some of the biggest roadblocks. With an expense management software platform, you can set spending limits for your employees. Moreover, it will also save your finance team from surfing through receipts as all financial history would be well documented in the cloud.

Lack of Security

There is no denying that security is an important component of any payment and expense management solution. With the help of expense management software, you will be equipped with cutting-edge security to secure your business from theft and potential misuse of funds. No doubt, there will always be a certain level of the human element involved when discussing security.

Do you know that an automated expense management system can generate prepaid cards that you can issue to your employees? For instance, if the employee of your company lost the corporate card, you can keep their account safe by making the necessary changes in the expense management platform. In short, if you want to safeguard your corporate accounts from fraud and other security risks, opting for expense management software is important.

Lost Receipts

When you manage expenses manually, there is always the risk of losing receipts. Moreover, at times, an employee or the reporting manager may misplace the entire bundle of receipts. This can usually lead to bitterness between you and the employee. This is because it can take months to fix the commotion.

However, when you use an expense management software platform, everything will be digitized. There is no need for you to worry about misplaced receipts and paper trails. You can access the reimbursement history from anywhere and anytime, which exudes practicality. As you can see, there are several issues that can arise in the absence of an automated expense management platform. Note that the claim process will be very cumbersome with the traditional expense management processes.

However, submitting the claims and reimbursing the employees will become easier when you have an automated expense management platform. With an automated platform, managers can approve claims as and when they appear. This will help accelerate the claim approval process. With an automated expense management platform, there is no need for you to go through credit card statements manually. With the software, you will be able to tally expense claims with credit card statements. Opt for expense management software to fine-tune your industrial operations.