What is Wrong with Expense Reporting?
A lot of finance processes have become digitized and automated in the last few years, but this list does not include expense reporting. This process is still stuck in the manual era. Using excel sheets for reporting comes with hidden costs which are brought about by extreme inefficiency by causing unnecessary and excessive administration and creates missed opportunities for finance professionals to make informed insights and drive business growth.
Expense Reporting is a burden for all. For employees, it is a repetitive task they do not enjoy because its tedious and frustrating. This also leads to slow reimbursements for employees because team leaders are responsible for approving their reimbursements that are filed, which can take a lot of time and increase their workload for no reason. This also means the finance teams have no control over the expenses processes.
It is Time to Automate All Expenses
The first step to automation is replacing the claims and reimbursement processes completely. Companies should install an integrated payment system which can be used to track all transactions automatically, thereby eliminating the need to file formal reports and enabling the finance team to gather and track all the information they need.
Organizations also need a built-in and preemptive policy framework with clearly defined rules that apply to every employee in the organization, which can be adjusted when needed. There should also be a complete overview of all business spending for the financial decision makers to help reduce human error and inaccuracies. This is done by automatically categorizing a wide range of transactions and recording all spending data.
The application should be remote-friendly and mobile as well and allow access to relevant information anytime and anywhere for employees. It should also be integrated with all existing financial tools and ERP systems.
Automating all expense reporting gives companies the chance to unlock their financial data and helps in creating in-depth reports on business spending both individually as well as across the entire organization. Finance teams can now avoid any oversights and map the organization's expenditure, gain insights on their expenses and leverage their data to improve their processes.
- Automating expense reporting is still a new concept for most organizations, despite having other financial processes digitized
- When there is an integrated, company-wide financial reporting process in place, both the employee's and the finance team's jobs become easier and less tedious
- Automation gives more insights into the company's expenses and helps in optimizing them