As businesses grow and change, it’s important to streamline business processes. A lean company is a more profitable company, and simplifying procedures eliminate unnecessary costs and maximizes staff time. Expense reporting is a necessary practice in any business; it’s also one of the easiest to automate. While the logistics of switching from a manual system to expense tracking software may seem daunting, the results are worth the effort. Here’s why.
The Hidden Costs of Expense Reports
Manual expense tracking methods may not require the purchase of expense tracking software, but that doesn’t mean they don’t incur a cost to your company. Consider these statistics from an industry study done by the Global Business Travel Association:
- It takes 20 minutes of staff time to complete one expense report.
- Each expense report costs $58 to process.
- 19% of expense reports contain errors.
- It takes 18 minutes and $52 to correct one expense report.
Multiply these figures by the number of expense reports your company processes each month, and the numbers are astounding. Factor in added liability for fraud decreased employee satisfaction due to delayed reimbursements, and lost or misplaced documentation at tax (or audit) time, and the figures become even more mind-blowing.
Expense Tracking Software Can Help
Adopting expense tracking software helps your bottom line and overall operations. By implementing an efficient and user-friendly system, your employees will experience fewer errors and delays, and expense processing will take up far less valuable staff time. In fact, companies using expense management software spend up to 27% less on related activities than those who don’t.
In addition to saving your company money, streamlining your process with expense tracking software helps in the following tangible ways:
- Employees will submit their expense reports in a more timely manner if you choose a platform with remote access.
- Customized approval workflows mean expense reports are always submitted to the proper authorization authority.
- Automatic notifications – and easy-to-send follow-up reminders – mean significant approval delays are virtually eliminated.
- Lost paper forms are a thing of the past with a 100% online system.
- Photo receipt uploads are automatically stored and organized, eliminating the need for old-school file storage.
- High-level security and frequent off-site data back-up ensure that even if your business experiences a catastrophic event, your historical financial data remains intact.
- Time-, date-, and employee-stamped historical change records drastically eliminate the possibility of in-house fraud (and related financial loss).
- An improved expense management system allows employees to be reimbursed more quickly, resulting in better employee satisfaction and overall retention.
- Established reports ensure there are no incorrect formulas or errors in data processing; you can have complete confidence that your numbers are reliable and can be used to make data-driven decisions for your company.
The Expense Tracking Software You Need
Ready to switch to electronic expense tracking but wary about complicated installation, maintenance, and tech requirements? Try MindSalt! MindSalt is a web-based expense tracking platform that requires NO software installation, configuration, or ongoing maintenance. All that’s required is an internet connection to report expenses, review submissions, and run reports. And with a straightforward pricing structure, you only pay for the employees you need. Sign up for a free trial today!