24 November 2021
If there is any process in a business that makes managers and employees groan, it's likely to be the expenses claim process.
Because the process is often littered with paper-based manual steps, which represent a huge cost in terms of employee effort, simply to get back the money they've already spent on the company's behalf.
And the sheer range of process steps, cheques, and opportunities for erroneous data entry mean that the traditional expenses management process can be listed with risk and hidden costs.
Ask business owners what they like least about the personal expenses claim process and they will usually list factors like the risk of fraud, the impact of lost receipts on their reclaimable VAT and the opportunity-costs of employees tied up at month end, completing their expense claim forms.
Add to this the costs of checking, the operational impact of manual reconciliations, and clunky spread sheet expense management systems, and it’s easy to understand why business owners regard this process as one which carries a broad range of hidden costs.
For employees the frustrations are multiple and significant, and include the pressure to retain paper receipts; the significant chance that receipts will be lost, damaging the opportunity to make a claim, and the distraction of the month end claims cut-off, which always seems to clash with a more important deadline.
Enlightened small to medium sized enterprises (SMEs) are increasingly managing their personal expense claim processes using smart technology from providers like Expend. With intuitive mobile apps and software which integrates into accounting packages, the management of expense claims becomes simpler, swifter and safer for businesses in all sectors. Which makes for a clear, cleaner expenses process.
Expense management software and apps allow business owners to be in full control of their expense management processes, including the ability to approve expenses in real time. Management of limits and categories of spend can be controlled automatically, at team and employee level if required, and permission to use the system can quickly be switched on, or removed, to match circumstances.
Most importantly, expense management software resolves the challenges provided by traditional claims processes. Employees’ spend can be captured in real time, with pictures of receipts uploaded via an easy to use app. Approval is given by the respective manager, which means that the expense is pre-validated for a month end claim. And the app reduces the need for a routine form, and so dramatically reduces admin time and the chance of error.
For employees, they can relax knowing that once the receipt details are captured, they don’t need to worry about taking care of a mounting pile of cash-till paperwork. And the time, energy and diversion associated with a month end claims process is gone.
As importantly, because all purchase are captured in real time, an expense management app means that employees won’t forget about an important item for reimbursement, as it’s already captured, through smart integration, onto the company’s account system, ready for prompt settlement.
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