Technology has had a huge impact on almost all business processes. The cost saving, efficiency gains and reduced margin for error that leading tech solutions continue to deliver have improved working processes exponentially.
Finance and Accounting processes have undergone as large of a transformation as any.
From the introduction of VisiCalc in 1978 (according to InfoWorld, “the first successful software product to have gone through a complete life cycle” ) to the cutting edge SaaS solutions available today designed to manage accounts, purchasing, risk, billing, invoicing and more.
Can you imagine going back to completing company accounts armed only with a pen, calculator and hefty ledger? Imagine the drain on time, money and resources dated systems and processes would result in.
Not investing in innovation and continuing with outdated processes simply doesn’t make sense, yet it is exactly what many organisations persist with when managing employee expenses. Expense Management remains one of the last overlooked Financial business processes.
Surveying Senior Finance, Accounting and HR professionals in Europe Xpenditure found that;
- 32% of businesses use an outdated manual approach to expense management. This regularly involved manually scanning receipts, filling in forms, attaching forms, filing receipts etc. In many cases digital receipts were printed and then stored physically!
- 56% of businesses use a digitised manual process relying on Excel (or equivalent). Essentially taking the same steps as above with less physical writing and more typing…
According to research into Expense Reporting by the GBTA Foundation, at an average company, 19% of expense reports are submitted with errors each year. The estimated cost to fix individual reports… €48… per report.
With almost 1 in 5 reports containing errors you can quickly calculate the monetary cost to your business. In addition to the monetary cost consider the Finance Teams spike in workload as an entire company’s expenses are submitted days or hours before the deadline. Also consider the unnecessary frustrations that a delay in reimbursement causes employees, often the result of one incorrectly filled in spreadsheet cell or a missing receipt.
The monotony of the task for the Finance Team and the unnecessary frustrations for employees are both potentially massive demotivating factors.
Coupled with the financial cost of errors in filling in forms, updating spreadsheets, collecting receipts, sending emails and duplicating information in accounting systems it is clear the expense management process is one of the last dinosaurs in your organisations business processes.
Yet it doesn’t need to be this way.
Advances in scanning and data extraction technology, delivery methods, integrations with leading Accounting and ERP software in addition to the ubiquity of the smartphone mean Xpenditure expense management solutions deliver significant ROI, are easy to use, cost effective and can be rolled out quickly.
Resistance to change within Expense Management is usually minimal as expense claiming employees and Finance professionals already identify with the flaws in archaic systems and processes.
The benefits for both expense claimers and the Finance team are experienced immediately which significantly increases buy-in as real business challenges are resolved.
Benefits achieved by automating expense management include;
- Lowering processing costs
- Better ability to enforce travel/ expense policies
- Improved ability to detect and prevent fraud
- Improved transparency over spend
- Quick reimbursement of employee expenses
- Better compliance with regulatory requirements
- Increased corporate card usage and rebates
- Improved employee satisfaction
Persisting with dated, manual expense management systems and processes?
Start an Expense Management Revolution today! Experience first hand how the automation of Expense Management can help your business. Schedule an online intro and/or get started with a Free Trial of Xpenditure today.