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What are the benefits of an expense management software?

Despite moving into a digitally connected world, expense management remains one area of business administration where paper-based and manual processes are still used.

The idea is actually a bit of a head scratcher if you think about it. We’re at home talking to our TVs and asking Alexa to add potatoes to the grocery list, yet the world of expense management in the workplace is still stuck in the dark ages.

The current process for the majority still sits with employees keeping copies of paper receipts for any personal costs they incur for business purposes. These receipts are then attached to a claim form and, if found to be valid, the costs are reimbursed.

It’s very old school. But there is a solution out there that most people may not even realise they need; which is where we come in. 

You may be wondering, what exactly are the advantages of moving away from a traditional approach to a cloud-based system such as webexpenses? 

Well… here’s a little look:

Streamlined Administration

The switch to a digital management solution will typically reduce the time it takes to process expenses by 25 percent. It does this by minimising the need for endless reading of paperwork and removing the tedious admin tasks. 

Employees can use a smartphone app to instantly convert paper receipts into a digital form – allowing expense reports to be updated as and when costs are incurred. With all of the information being handled digitally, you no longer require the bundles of paper receipts to be shuffled across an organisation. It also voids the need for large amounts of information to be manually imported, which in most cases is a slow and error-prone task.

Effective policing

The traditional ways of managing reimbursements have failed to effectively control employee expenses. Exaggerated and falsified costs contribute to the $2.9 trillion that’s being lost globally each year to workplace fraud – leaving you to wonder whether or not the antics of Mad Men may not be as far fetched as they seem, even in this day and age… 

Ultimately, there is a major bug in the matrix that a lot of companies don’t really notice is there. Employees are able to easily exploit the inherent weaknesses of traditional systems and inflate costs for their own gain like there is no tomorrow. On top of this, slow and inefficient processes mean finance teams do not have the time or resources required to monitor or enforce policies.

A digital system allows real-time alerts to check each and every cost that’s submitted – triggering a warning whenever costs breach any set limit. Policy notifications and reminders are also delivered via on-screen notifications. You’ll have full visibility of employee spend with no further risk of strange dealings. 

External compliance

Whether you like it or not, the legislative world is moving from a paper-based to a digital world. The external systems that businesses have to integrate with are increasingly set-up for digital ways of working.

In the UK for example, the tax system is being revamped with the Making Tax Digital (MTD) legislation – making it compulsory for businesses to submit VAT information via a digital system. 

Webexpenses is future-proofed for a digital environment, with access to the level of accurate and detailed expense information that’s not possible with a traditional and manual approach.

User experience

Submitting an expense report has always been one of the dreaded chores faced by employees. It’s a painstaking and laborious task that creates a monthly flood of paperwork for admin staff to process.

The switch to a digital system removes this pain-point. With ACR (Automatic Character Recognition) scanning, the webexpenses’ smartphone app can convert a paper receipt into a digital claim in less than 20 seconds, extracting only the information you need.

A fast, efficient and simple system automates the tedious tasks and changes the way that expenses are perceived within a workplace. Rather than being a dreaded task, it becomes a seamless part of everyday operations.

Management visibility

At the root of all the problems with a traditional approach to expense management is a basic lack of visibility – you can’t manage what you can’t see.

Trying to collate information for reports becomes a prohibitively complex and resource heavy task as information is manually pieced together from multiple spreadsheets.

Webexpenses provides integrated reporting features which allows a finance professional to instantly access a wealth of accurate information on every aspect of an expense operation. It provides a powerful to help meet tight reporting deadlines and track performance.

Conclusion

The basic reason that a paper-based approach to expense management has existed for so long is because there has been no alternative. The switch to digital management doesn’t just provide a slightly more efficient system – it delivers a fundamentally better way to manage and monitor expenses.

It’s a way of working that’s attuned to today’s digitally connected business environment. With the continued development of faster, smarter and more secure digital processes, the paper-based approach to expense management is reaching the end of its lifespan.

If you’re truly interested in bettering your expense management process, as well as saving yourself time, money and a whole lot of headaches, feel free to contact us or request a demo if you’re already feeling confident!