How Corporate Cards and Reconciliation Redefine the Expense Management Process

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Time, effort and money are three key aspects for any company. All of these should be given equal importance to make the company succeed. But when you handle the expense reporting process manually, you need to invest a lot of time, effort and money, which is a big no-no for most companies. The future of expense management can be defined with three factors-Automation, real-time visibility, and analytics. Currently, the expense management process works as follows:

Companies give cash advance or employees spend from their pocket
All expense receipts should be stored
When submitted, finance department enters the data in spreadsheets manually
Prints expense report
Attach receipts to the report
Submit expense reports to the finance department
Finance department reconciles expense reports with receipts
Enter expense data into the accounting system manually
Employee gets reimbursement

In the above procedure, businesses face some challenges such as:

42% of employees lose receipts
25% of expense reports will be filled with error-prone and incomplete entries
28% of employees spend out-of-policy
47% of employees do not submit their reports on time
47% of excel sheets are not easily reviewable
29% of manual reports are not easily accessible
50% slow reimbursements

When cash is used, the following are the a few challenges that companies face:

Difficulty in monitoring/tracking cash expenses
Risk of fraud
Employee needs to wait for reimbursement for long periods

When expense management process integrates with corporate cards, companies can eliminate the hassle of cash, receipts and spreadsheets. Corporate card integration fully automates the expense management process from purchasing to accounting, thus giving companies real-time visibility and control over entire spending. Corporate card integration makes your expense management a three-step process

Employees spend expenses with corporate cards and then capture the expense receipts
Managers approve expense report
Finance department verifies expense reports and imports data into accounting

When your corporate card integration is in place, everything can be automated and operated with ease, thus simplifying the process of expense management. There is nothing much difficult to do with a corporate card-you just need to configure card number into our system. You will be receiving notifications whenever a transaction is made. In this way, you will be able to know all the transactions your employees make, thereby reducing the risk of fraudulence.