The cost of human error on expense management

The process of tracking employee expenses can be time consuming and labour intensive.

This doesn't just apply to the accounts department, it’s relevant for accountants too.

While it’s all part and parcel of doing everyday business, it’s a function that can be streamlined and made more efficient by utilising digital expense management systems.

For accountants, this particular digital revolution couldn’t have come sooner.

Traditionally, expense management has been a manual process that can - and does - fall foul of human error, lost receipts and late claims because staff have literally forgotten to submit their claim before the cut-off date.

And, because of the cumbersome way expense systems are set up, the manual process is also at risk of fraudulent activity. This, as you can imagine, is a real problem for businesses and accountants alike. 

The advantage of using automated expense management platforms is that they integrate seamlessly with accounting systems so that claims are registered the moment an employee enters the expense.

Digital platforms are also configured so that they’re compliant with HMRC requirements, which means that there’s less opportunity for fraudulent, incomplete or missing claims.

When it comes to employees making an expense claim, and the business administering it, expense management software has transformed the accounting procedure.

This technology saves huge amounts of time, not only within the business itself, but for accountants too.

For any automated platform to be successful, however, convenience has to be at the heart of the process.

That’s why expense management companies like Expend have developed a useful mobile app that employees can download onto their smartphone.

With it, staff can register expenses on the move. This not only makes life easier for them, but for the business too, because claims come in as they happen, smoothing out the number of claims being received over the course of the month. 

Another great advantage of expense platforms is that they have a built-in reminder for employees who forget to upload their receipts, ensuring that all claims are ratified with the required paperwork.

So, the potential loss of receipts is greatly reduced, and accounts teams aren’t overwhelmed with claims arriving in bulk on a set day each month. 

As digital expense management systems can link with accounting software such as QuickBooks or Xero, the process of reconciliation is streamlined.

Being able to sync data – receipts, invoices, mileage and any other out of pocket expenses – from the company’s system into an accountancy software package takes a huge amount of the grunt work out of managing the claims process. 

It’s all controlled via one universal dashboard, and because all this happens in real-time, accountants always have a holistic view of the company’s overall spend.

The end result of these features means less admin, less passwords to remember and less systems to have to manage.

If you would like to know more about how Expend can help you streamline your clients’ accounts, get in touch with one of our advisors to have an informal chat about your requirements.