Business health is highly dependent on how well employees and staff handle expenses. When companies treat business expenses with the highest accountability and stewardship, everyone wins and thrives. Hence the need for business travel and expense management software to improve travel and expense management.
Travel and entertainment costs remain to be one of the biggest company expenditures, accounting for the second-largest company expense. Inconsolably, it’s also one of the expenses with the least check and balance. Technology has taken to greater strides to automate and streamline travel and expense management by creating cloud-based software solutions that help cut out time-consuming processes that increase chances of error while eating dozens of hours per week of employee time.
There are many benefits to using expense management software. Let’s discuss five of the key advantages.
Up to 43% of companies report that they still manage expense reporting manually. Most account for this to the mentality that there’s nothing wrong with manual travel and expense tracking. Of course, manual processes aren’t a crime, but they aren’t the best way anymore either. This is mainly due to the itching presence of human error in manual expenses management.
Most of the common features of expense management software help curb clerical errors, making it a better option for finance departments. It helps avoid burning time and energy searching for mistakes in liquidations and avoids any accounting mistakes that could pile up to significant dollars in deadweight loss numbers. Removing the human aspect to the expense management process is in no way a threat to human resources. In fact, it supplements the trade by allowing staff to spend their valuable time, creativity, and decision-making abilities on more important tasks.
Imagine what would happen if your field sales representatives could redirect two to five hours a week towards doing more sales calls and prospecting. The direct return of investment could be promising. That’s what happens when your sales staff no longer has to manually track expenses, wait in the queue while travel agents confirm bookings, or standby while main offices approve budget requests. By running expense management for small businesses, staff saves countless hours and resources. And it doesn’t end with sales representatives. The same could be true for any staff member who travels or moves around to get work done on the field.
Learning how to automate expenses tracking could save a company and its staff a lot of trouble and allow them to channel time, energy, and resources back into helping the company grow and thrive.
If you’re an accounting and finance professional, you’ll know how tedious it is to go through travel and expense accounting entries. But it’s a necessary activity if we want to interpret expenses and find better ways to allocate company resources. Virtual expense management software can make that process a lot faster and smoother through automated reporting and interpretation.
XpenseCo, for instance, provides company finance departments with a dashboard that can organize and analyze business expenses according to employee, project, or department. The feature helps with appraisals and performance evaluations and gives the business a better glimpse of how every employee uses valuable company resources to help stakeholders, decision-makers, and managers figure out ways to better allocate company travel and entertainment expenditures.
When managing and tracking employee expenses, the goal is never to micromanage. While companies should give all staff who use travel and entertainment budgets, that should never be a reason to lower down standards of accountability and transparency. With expense management software, companies can track expenses and manage staff without bureaucracy or politics.
Through automation and computer learning, expense management software can flag out-of-policy expenses immediately. This eradicates the need for managers to manually police each staff member’s expense records, allowing for more accountability in the organization without having to resort to a helicopter supervisor approach, which can lower staff morale.
Not all benefits are simply for company policy. Employees win as well when using expense management software. With automated processes in place the verification and checking process for reimbursements are a lot quicker, usually lasting no more than 24 hours. When you compare expenses management software solutions, most if not all available options allow for faster reimbursement times.
Employees can also submit expense reports a lot faster given that software can take care of processing, liquidating, and computing for staff. Managers can also quickly review them as cloud-based applications allow for multiple access from anywhere in the world. Hence, tools can get reimbursements into employees’ bank accounts a lot faster, improving employee morale in the process.
The travel and expense management software market will most likely reach $2.7 billion in valuation by 2022. What this tells us is that travel and expense management tools are on the rise and will most likely enter more company systems in the foreseeable future. If you’re looking for a way to automate and streamline travel and entertainment cost management, it’s time to look into using a travel and expense management tool for your business.