Still claiming expenses via paper, spreadsheet, out-dated legacy or in-house system? Isn’t it time to look back on such traditional ways with nostalgia because here are 10 reasons why expense management should be automated right away, you don’t need to even be that big a corporation as the benefits are hard to ignore.
1) Save your money in more than 1 way
Many businesses’ fear is being trapped into continuing to use their current system because they are worried about the cost to change. The implementation of pricing models based on usage can be done so quickly (in modern expense management systems) and simply that it is no longer a huge burden on your IT or Operations team.
In particular, the ability to link your expenses tool to your credit card and import data automatically into your expense management system means that most of the data is prepopulated in the claim. This helps to reduce the cost of processing expense claims by as much as 78% per transaction. It also means that the data created is all in one place and easy to report on – giving insight on where you are spending money and enabling you to negotiate discounts with regular suppliers.
2) Keep your enterprise in order
Being aware of new regulations and managing all the related changes can be costly and time-consuming. To large corporations, when your business operates in multiple countries, the challenge becomes even larger and more complicated.
Automated expense management systems virtually eliminate the risks around regulatory compliance. They can apply complex tax rules and provide built-in auditing capabilities and go even further by capturing the data required for reporting on expense spend for corporation and income tax purposes.
3) Know where your money goes
Making intelligent business decisions without the relevant data is difficult. Having travel and expense information centralized makes it simpler to report on a multitude of performance indicators.
This insight is critical in the on-going refinement of travel and expense policies, as well as in identifying areas where better deals could be negotiated with suppliers. The automated expenses also helps to identify spending trends by mode of transport, by client, by country or by employee, which therefore, minimises fraud, or a regulation breach.
4) Minimise Fraud
Accuracy of data is the key to an efficient system that decreases the risk of fraud. Automated solutions ensure that fair and consistent rules can be applied across the company, ensuring that employees do not have the opportunity to enter incorrect and out of policy claims.
Furthermore, using an end-to-end solution to import feeds from travel suppliers and from corporate card providers means that data is automatically prepopulated into the expense claim thus reducing the chance of human errors.
5) Integrate Travel into your Expense
Using an end-to-end solution, travel-booking details can be prepopulated in the expense claim. Travel can be booked with all your usual suppliers – airlines, hotels or car rental companies – and by booking through the same platform, you’ll find the cost they charge is as much as 79% less per transaction.
By holding all data on travel and expense in one place, it will save lots of time for your finance team or auditors to check the data against company policy and the latest regulations.
Here we’ve reached the first 5 reasons why company should automate your expense management process. Read part 2 for 5 more good reasons in the following article. You can also request an Infor SunSystems 6.3 demo to see how an automated expense manangement system can help your business.
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