Reasons Why You Need Software to Manage Your Business Expenses
Let’s face it…expense management is not just for those big rich corporate houses. Every business, no matter how big or small, has to deal with endless receipts waiting for verification and approval. However, spending time on getting these sorted is often a waste. Especially, when managers are put into such situations, they cannot contribute to the growth of the business. Even employees find filing business expenses manually tiring. After all, they have to first bear the burden of business expenses, and then carry a fat bundle of receipts to work, hoping they would be verified and their expenses reimbursed as soon as possible.
All in all, there is absolutely no point in manual business expense management anymore. All of this can be handled seamlessly and transparently by business expense tracking software. Let’s look at a few reasons why you absolutely need software to manage your business expenses:
Automate business expenses
Imagine a world where filing of business expenses is paperless, receipt scanning is automatic, and verification and approval occurs instantly! Yes, that’s what the right business expense tracking software will do for you. Such a software seamlessly integrates all the tasks involved in business expense management and automates the workflow.
Once an employee incurs an expense, they can simply use the software application on their phone to click a picture of the receipt. This receipt is then uploaded to the software, and it is auto scanned for important details like time, date, amount, business, etc. It is then categorized and sent automatically for verification. Users can set up an automatic point by point verification step, or route receipts to the concerned entity for approval.
Every expense is tested for compliance and approved. After approval, the process of reimbursement is initiated. And voila! In case a receipt is not approved, it is flagged and sent to a designated party for a secondary check.
Also Read: 3 Steps for Tracking Your Business Monthly Expenses
Error free and risk free expense management
Global Business Travel Association reports that 19% of expense reports are filled with errors. This can be a real setback, considering that companies file multiple expense reports and spend valuable time to correct them. This back and forth game of error-filled reports and the arduous correction involved is not unknown to managers. The good news is that, even free expense tracking software can generate error free expense reports. So, why waste precious time?
Save yourself from fraud
Businesses are vulnerable to fraud when it comes to managing business expenses and the conventional way of filing expenses. In fact, employees often take advantage of the manual process, and they even admit to it, according to this survey.
Did you know that businesses lost over 500 million dollars to fraud in the first half of 2020, according to UK Finance? Even small businesses fall prey to frauds, and the loss is more than just money.
However, even if you use any free expense tracking software for small businesses, you can prevent fraud, owing to sophisticated algorithms and compliance management. Nothing irregular will go undetected and managers can reprogram the software to further customize the flagging of fraudulent receipts.
Transparent expense management
Business expense tracking software solutions are thoroughly transparent and employees get intimated at every step. Even if their expense receipt is flagged, they can challenge the disapproval.
Also Read: How to Find the Right Expense Tracking Software for Your Business
Ensure policy compliance
One important reason why businesses should switch to software is to ensure policy compliance and to implement regulations strictly. Going through each and every receipt and checking it for compliance can be a long and arduous process.
The policies in place are also subject to change, and so, managers are left juggling with laws at hand and bundles of receipts, trying to make it all work. Fortunately, business expense tracking software can do it all, through automation. Every receipt is checked for policy compliance and only then sent for approval.
The only sensible thing to do to manage business expenses is by embracing the right software. So, hope you found the above reasons compelling enough to sign up for the right kind of business expense tracking software today.
