05 January 2022
Traditional methods of managing the expense claims process have been problematic for businesses since they were first implemented. Lost receipts, bogus claims, overspending, late submissions, amongst other issues, have always presented problems for the accounts department.
Then there’s the time it takes to deal with all the individual transactions.
Manually processing receipts and reconciling them with the business bank account takes time – lots of it.
In fact, it’s not uncommon for a company to have dedicated members of staff who allocate a set number of days each month just to manage the process.
Aside from the obvious time demands expenses management incurs, manually administering claims can lead to incorrect entries which pose their own issues in terms of balancing the books.
Thankfully, technology has moved on and businesses can take advantage of digital expenses management platforms to handle the process. These platforms have revolutionised the way things are done.
They provide real-time insights into an employee’s spending so you can stay informed.
You can review and approve purchases, mileage claims or invoices, making the task of keeping up-to-date on staff expenditure easy and transparent.
Another really useful aspect of digital expenses platforms is the ability to sync with your accounting software.
It integrates automatically, making the end-to-end process of linking expenditure and the overall accounting system of the business seamless.
Knowing what’s going in and out of the bank account at any given time leads to a better understanding of the company-wide expenditure.
Another huge benefit of utilising technology over manpower is time.
Automating the expenses process allows your staff to concentrate on other areas of the business. It boosts efficiency, working behind the scenes while staff get on with other tasks to drive the business forward.
It’s not just accounts staff that benefit. Because the system is automated, employees don’t need to spend time filling in paper forms to submit their expenses. After each transaction, employees can upload a copy of the receipt to the system and the software takes care of the rest while they get on with what they’re paid to do.
The benefits to the employee are clear; their personal cash flow isn’t affected.
These cards are directly linked to the system so that the money comes from the company’s bank account. The advantage of this is that you have an understanding of what’s going out of the business in real-time.
You can set the spending limit on each card allocated to employees directly from the system and because Expend cards are Mastercards, they can be used anywhere in the world.
You don’t even need to worry that employees will withdraw cash from the company’s accounts as there’s a facility to prevent ATM withdrawals.
Because it’s an automated platform, the process of managing expenses claims is a lot faster and easier for the accounts department to manage.
Similarly, as it works on AI technology, errors are prevented because the process is not relying on human input which can be prone to mistakes.
By having the ability to upload receipts, deal with transactions and integrating to your wider accounting software, you have far greater control over the expenditure of your business.
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.
He is either brainstorming new ways to change the world of expenses, or building lego with with his kids.