For many businesses, the effective management of employee expenses has been an unattainable goal. Finance teams have struggled to cope with the monthly flood of paperwork, instead making allowances for a certain level of losses to error and fraud.
It helps to explain how something so seemingly benign as employee expenses has become such a thorny problem for UK businesses, who continue to lose around £100 million each year to falsified and exaggerated claims.
But it’s not just the financial losses that harm companies, the reliance on manual and paper-based systems has a stifling effect throughout an organisation – eating up valuable time and resources.
These are problems that finance teams no longer need to tolerate. We now have access to a digital toolset which allows these outdated manual tasks to be replaced with automated processes and real-time monitoring of company costs.
Here’s a look at 5 easy steps your business can take to transform the way you’re able to manage employee expenses:
Switch to paperless processes
It’s by virtually removing the need for paperwork that processes can be automated with a digital system. This is achieved by employees using a smartphone ap0p to convert any paper receipts they receive into a digital form.
By handling information digitally, it removes the need for manual data entry tasks with a multitude of spreadsheets and claim forms being replaced by a centralised and integrated system, providing real-time access to data.
Making this switch from a traditional setup to an automated system will typically reduce processing times by around 25 percent.
Clampdown on compliance
Digital systems are becoming essential when it comes to ensuring that employee expenses comply with both internal policies and external legislation. With information handled in real-time, automated triggers can be created to spot any claims which breach limits set by the finance team.
It helps to guard against those errors and fraudulent claims that were liable to remain unseen with traditional setups. With data collected on each step of the process, companies also have access to all of the information they need when providing information to the HMRC.
Make it mobile
It’s not just finance professionals who’ve had to endure the pain of having to manually handle expenses. It’s also the claimants who have had the time consuming task of filling out a monthly claim form with bundles of old paper receipts attached.
The move to an automated system allows employees to quickly and easily manage their accounts from wherever they have an online connection. With the use of a smartphone app, details can be updated in minutes.
Improve financial visibility
When you switch to a digital system, every aspect of employee expenses is automatically tracked, logged and stored. It provides accountants with access to a mass of quality data with which to work.
An expense management system such as webexpenses combines this with a powerful set of reporting tools to allow the information to be easily managed and manipulated. It gives finances teams the kind of forensic view of company costs that’s not previously been possible.
Track mileage costs
One of the most awkward areas of expenses to properly control has always been mileage costs with business travellers relied on to provide estimates. It’s one headache that an automated system solves when the exact distance of road journeys can be calculated from point-to-point.
It gives finance teams the level of information required to ensure that business travel claims are legitimate. For employees, it’s a simple and quick way to ensure they’re fairly reimbursed.
These are just some of the examples that automated systems transform the way that finance professionals are able to manage employee expenses. By removing the shackles of manual systems, businesses no longer need to tolerate expense related losses.
Find out how webexpenses is helping organisations find a smarter way to manage expenses by requesting a free demo here.