How much time is spent on expense claims?

Ask any employee how much time they spend on expense claims and the answer will almost certainly be “too much.”

Traditional expense management processes, built on claims forms and approval sign offs, can drain time, effort and  energy from companies of all sizes.

So, let’s take a look at some of the time spent on expense claims and consider alternative approaches.

The average expense claim takes more than 45 minutes to process.

⏱ Typically, it takes an employee 30 minutes to find their receipts and complete their form with the dates and details of their expenses.  

⏱ Add five minutes for their manager to review the claim and approve, and a further 10 minutes for a colleague in the finance team to review the claim, reimburse it and reconcile it on the company accounts. 

So, almost one hour per claim. And with employees making regular claims, across a large firm, the total time lost to expense claims can soon mount up.

What happens when you ask employees to complete their least favourite task against a deadline? They make errors.

This might explain why about 1 in 5 expense claims contain mistakes, which can typically take 20 minutes to correct. 

It soon becomes apparent that traditional expense management processes are characterised by lost time and lost opportunities. 

Finally, it’s important to realise that each expense claim costs about £18.00 to process, including employee and finance team time. 

Even if employees complete their claims during work hours, it’s difficult to find many people who enjoy spending time on the reclaim process. It’s often a distraction from the more important tasks on their work list, and because there is normally a cut off deadline for claims, it’s often a stressful task, done against the clock.

For many companies, the time spent on expense management is time they can least afford. Commercial pressures mean there is always something else that employees could – or should – be doing. And perhaps the only motivation for completing the expense claims form is the idea that the employee will get their own money back! 

So, what are some ways to reduce the time lost to the traditional expense claims process?   

Expense management software is quickly gaining ground as companies of all sizes look to embrace technology and automation in their expense management. 

Providers like Expend are creating innovative alternatives to clunky, time-consuming claims forms. For example, the Expend Mobile App enables employees to submit photos of their business receipts, and process their claim by the click of a button. 

Employees do not have to complete a claim form, the data is more likely to be accurate, and the reimbursement is much swifter, with the claim quickly approved through pre-agreed management workflows.

So, the time spent on claims is massively reduced and employees do not face being out of pocket for weeks on end. Expend also provides Expend Mastercards which takes away the need for employees to spend out of their own pocket in the first place, set up with strict spending controls and security measures for finance teams to control.

Most importantly, employees get to focus on their core role, rather than the uninspiring, time-consuming paper chase of the traditional expense claims process.

Disclaimer: This is not legal, accounting, or tax advice - it's simply a guide. If you need help, check with your accountant or contact HMRC directly.