Today, many businesses are still using excel spreadsheets, paper receipts, and printed reports for managing business expenses. This results in a lot of inconsistency. Since businesses have to manage expenses, they require a reliable system in place to collect, store, process and report these expenses automatically. Expense management automation means eliminating all paperwork or spreadsheets when dealing with expenses which allows faster processing.
That said, here are the reasons why expense management automation is necessary for your business.
Reasons for Expense Management Automation
- It helps save time: Expense management automation saves time for all parties involved including claimants and approvers. With a digitized system, employees can easily record claims and the finance team can process the claims immediately.
- Eliminate risks of errors: Manual recording of expense is prone to errors. But with expense management software, it’s easy for employees to enter original receipts into the system, and then the finance departments can approve their disbursement or reject them.
- Prevents expense fraud: Fraudulent practices are likely to happen when expense records are submitted manually. Employees might decide to submit the same receipt twice. Following up can be time consuming and expensive. With an expense management automation solution, it’s easy to identify items that have been recorded twice and the person in charge can decide to either delete or merge these expenses.
- Eliminates all paperwork: Manual export reporting leaves your employees exhausted because they have to deal with heaps of receipt at the end of the day. The finance team also has to go through tons of paperwork to verify and approve these expense reports. An expense management system eliminates the need for paperwork where employees can record and upload their receipts directly on the expense application using their mobile phones. This gives the finance team an easy time when giving disbursements.
- Speeds up the approval process: Reimbursement takes time to be approved if expenses are managed manually. An automated system notifies you when there are expenses pending approvals. Approvals can be done via phone without going to the office as long as there is an internet connection.
- Improves visibility and transparency: Every business wants to track money spent on daily operations. An automated system gives you real-time insights into expenses recorded, approved, and paid. This helps in the smooth operation of the business.
Expense management automation is a process that every business should explore. It helps employees record the right expenses and also generate receipt instantly. It also alerts them when approvals are complete.