Because of the COVID-19 pandemic, employees began to crave in-person activities. The use of employee credit cards increased for recreational spending by 107%.
If you don’t sign off on employee business expenses, you might be struggling with cash flow. Don’t let your employees take advantage of your outdated manual spending system.
Instead, use business expense report automation. Keep reading to learn the benefits.
What Is Expense Management Automation?
Expense management automation involves the use of software to manage reimbursable expenses. These expenses are incurred by employees that might lead to overspending.
Expense management uses analytical tools to make better spending decisions. Organizations also benefit from maintaining compliance and accountability for reporting business expenses.
There are a variety of software options and digital tools to choose from. For example, this virtual cards company uses an intuitive card-based spend management platform.
Benefits of Business Expense Report Automation
The most obvious benefit of business expense report automation is that it eliminates common traditional expense management errors.
When you switch to automation vs. manual reporting, you reap these benefits:
1. Cost Efficiency
Business expense report management solutions come at a price, but sticking with your outdated system is likely costing you more. Switching over to an automated solution will save you money in the long run.
Plus, not all software and solution options come with a fee. You can find free options that work just as well as paid versions.
2. Spending Visibility
Expense report AI programs provide insight for intelligent business decision-making. Expenses are centralized and can report on multiple performance indicators all in real-time.
As you spend money, your dashboard updates to the latest possible details.
3. Fraud and Risk Management
Expense fraud can cause cash flow problems that a small business might not be able to dig themselves out of. Automated expense reporting removes the messy tracking process that is prone to temptation and human error.
Employees no longer need to save receipts. Budget managers can find falsified and misinterpreted information and fix the problem right away.
A business will also be able to see when any other data is compromised. An example of this would be vendors attempting to overcharge you for services.
4. Ensures Compliance
Companies should rank financial compliance high on their list of things to account for. Noncompliance results in fines that can damage your business reputation and financial bottom line.
Automated business expense report options eliminate risks because the programs are designed to apply complex tax rules and built-in auditing.
Are You Ready to Improve Your Financial Bottom Line?
Tracking business and employee expenses is not a new concept, it is a necessary one. To stay compliant, save money, and prevent fraud, business expense report automation is the logical solution.
Mitigate the risks of your current expense process with software for all business departments. Doing so will improve your financial bottom line and allow you to reap the above benefits.
For more guides on business, check out the other posts on our blog.