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Why Your Business Should Consider an Expense Management Tool

January 4, 2019 | By: Fastpay

If your business is constantly dealing with expense reports from your employees, an expense management tool might be just what you and your employees are looking for.

Think about the amount of receipts your employees are expected to hold onto while they’re on the road, only to manually fill out a report once they arrive back in town.

An expense management tool can help automate and solve a lot of the nuisances of your employees traveling for work.

Expense Management Tool Benefits

Quicker Processing

When your employees get back from their travel, they’re expected to fill out a spreadsheet of all of the expenses they accrued, submit their reports manually, and then eventually they’re manually entered somewhere in your company’s accounting and payroll tool. With the entire process being manual, it can take a long time for everything to process.

An expense management tool eliminates all of those manual, time-consuming tasks and makes for much faster processing.

Less Paper, Less Problems

An expense management system allows your employees to take pictures of their receipts while they’re on the road and enter them into your system. While this creates a quick, streamlined process, it also eliminates the need for employees to keep all of their receipts and manually turn them in. The less paper they have to keep track of, the less chance there is of an issue arising.

Insights on Spending

One of the greatest benefits of an expense management tool is its ability to analyze all of your expense entries from your employees. This allows you to see where you’re reimbursing your employees and what they’re spending money on.

That data can help you spot inefficient or wasteful spending and address it with your employees.

Better for Employees

The quicker processing times help your employees get reimbursed faster, but that’s not the only benefit for employees. Because they’re able to enter their expenses into the tool as they occur, they’re more likely to get reimbursed for all of the expenses they accrue. They’re not expected to bring 50 receipts back from a long trip, nor do they have to manually enter expenses into a spreadsheet. It makes for an easier process with less room for error.

Eliminate Fraud

In an ideal world, employees wouldn’t try to cheat the system, but numbers don’t lie. In the US alone, expense fraud is a $2.8 billion problem. Expense fraud is able to occur because companies are required to manually verify every expense that employees claim. An expense management tool can track duplicated receipts, gas mileage, and other ways that employees try to inflate their travel expenses.

An expense management tool is a practical time and money saver for your business and your employees.

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Topics: HR Technology

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