3 Ways Expense Report Software Cuts Business Travel Costs
Employee travel and entertainment expenses typically cost 10-12 percent of overall business operating costs. From reducing expense report processing costs to eliminating out-of-policy claims, there are a number of areas where expense report software can help organizations cut costs.
In addition, analytical insight and the ability to drill down thousands of individual transactions can help businesses identify trends, spot anomalies, and gain actionable intelligence from the data. The following are some of the biggest benefits that businesses can experience by leveraging the expense report solution:
Minimizes Non-compliance
Non-compliance with company’s travel and expense policies is one of the biggest challenges for finance departments. Following pre-approval approach or having a travel agency can avoid a considerable amount of non-compliance spend. Non-compliance patterns would result in losing thousands or even millions of dollars and organizations should address this problem as early as possible. The key challenge is to detect patterns and it is quite impossible with spreadsheets. Also, spreadsheets will not yield actionable data, so you can’t make informed decisions.
Featuring intuitive dashboards, expense report solution can help rapidly identify the patterns of non-compliance. Also, you can easily identify the specific type, location, and department indulging in out-of-policy expense claims so that necessary action can be taken to avoid further.
Negotiate Vendor Discounts
Airlines, hotels, and car rental companies offer corporate discounts to organizations that spend a certain amount each year. The expense report solution allows organizations to track spending across the enterprise – by vendor, business unit, and type. This allows organizations to get information on a number of data points and secure the best rates with its vendors. Expense solution can help travelers check employee compliance with the agreed rates and help figure out any trends of non-compliance.
Spot Expense Fraud
Defining expense policies into expense management system minimizes the potential of out-of-policy expense claims, simply by not allowing employees to enter duplicate or fraudulent claims. At the very least, out-of-policy expenses will be flagged as employees need to enter explanations for non-compliant expense claims in order to submit them. In addition, analytics tools can spot patterns and anomalies within data sets. Using an automated solution can help reduce fraud by flagging suspicious claims.
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