Offline expense reporting tools like spreadsheets and other manual expense management tools are still widely used. In fact, according to a survey by Forrester Consulting commissioned by American Express, Microsoft Excel is the most common form of expense management. The survey results claim, “Firms that have fully automated other business processes have yet to make the same move with expense management.”
Offline expense reporting tools are inefficient and costly. Here are some ways that manual offline expense reporting might be hurting your company.
Lack of timely expense report filing. Your employees are busy. Chances are they don’t have the time to spend filing receipts and filling out expense reports. If it feels like pulling teeth getting employees to file expenses, it’s time for you to consider digital expense management for your company or small business.
Manual filing could cost your company money. The average cost of filing a single expense report is $29. As your company grows, it adds up quickly. Lowering the cost of filing can save you money. Employees can also inflate their expenses when filing. They may round up vehicle mileage and increase taxi receipts.
…and time. Expense reporting also takes time. Getting employees their refunds from an offline expense reporting method, like a manually compiled spreadsheet, can be very time consuming. Employees can also better use their time doing their job rather than collecting receipts and creating expense reports.
Employees want to go digital. Employees are aware of available technologies to aid in filing expense reports. There are many different types of cloud based reporting and mobile apps with financial software. Employees don’t want to spend their time filing expenses when there’s technology that can do it for them faster and easier. And again, they want to spend time doing their job, not expense reports.
Compliance. Lost paper receipts, human error, incomplete reports, and creative accounting can contribute to compliance issues. If your company has strict travel and expense policies, a new expense management tool can help you.
Switching from manual to cloud-based expense reporting tool could boost your company’s productivity, save you money, and keep your business up-to-date. Instead of using inefficient offline methods of recording expenses. Filing expense reports could be as easy as taking a photo with your smartphone.