With more businesses adopting a hybrid method for working, expense receipts for the home office furniture & equipment would get rivalled by claims for subsistence, mileage, and travel. The hybrid model explains that payroll and accounting services will get contented with a range of claims. Now, as the expense data between 2020 & 2021 got doubled year-on-year, tracking them has become quite challenging.
It’s justifiable that businesses now require a more innovative approach to formulate expense managing strategies. Here are the most innovative tactics that help organisations seamlessly develop, oversee, & run the expense management procedure.
Deciding What Would Work for Your Business
When business solutions get sought for other areas of your company like marketing and sales, they might stop adding more value. Remember that expense management might not be the income-generating function. However, you may leverage the true value and an affordable solution. After all, the most rewarding expense solutions work with the existing system. Select a relevant solution that integrates with what you have. Get steel, wood, metallic doors at Commercial doors today.
The Importance of Automating Expenses
Manual approaches need the use of spreadsheets and paperwork. That becomes inefficient when your personnel work together in the workplace, while it’s more cumbersome in a remote working world. The automated expense management system facilitates the reporting procedure for supervisors, accounting teams, and employees. A business must seek a strategy that minimises the need for emailing and paper shuffling.
Opt for New Business Credit Cards
Corporate credit cards help businesses monitor spending. In fact, they simplify the process of reporting for employees. Using them also eliminates the requirement for workers to cover costs & wait for them to get reimbursed.
From the employers’ fronts, credit cards maximise the cash flow. They prove terms before any payment becomes mandatory. Centralising the work of spending data simplifies the process of record keeping. Companies that don’t offer permanent employee cards can consider dollar-amount or single-use cards.
Tracking the Expense In A Seamless Manner
While establishing a reporting system, ensure that it offers your employees a seamless way to submit the expense reports and receipts. Using mobile devices to track the receipt images eliminates the risk of losing the paper receipts.
In fact, multiple companies are implementing automated software to support image uploads and submittal of their costs. These tools allow accounting teams to use their own computers or smartphones to access & approve/deny reports. That’s how the team can initiate the expense reimbursement procedure.
The Importance of Auditing the Process More Often
Expense and travel management isn’t a set-it-and-forget-it procedure. Regular audits help personnel track the spending time, pinpoint existing and potential problems (overspending and fraudulent receipts), make decisions on adjusting the policy, and more.
In addition, regular auditing the process helps catch malfunctions earlier, even before they become serious. CFOs understand that strong expense-tracking skills make it more seamless for external and internal auditors to verify the numbers’ accuracy.
Organisations that use paper receipts in this new-normal world are doing a disservice to the whole business. The best method to ease the reporting process is by using software that supports digital collection.
When a centralised system stores all the documentation, employees, accountants, and approvers can edit, ask questions, and send reports. Hence, it makes the whole process accessible and more accurate.
Educating the Employees on the Tracking Practices
One must never keep the expense management procedure or policy a secret. Rather, it’s best to get the employees involved by upskilling them about identifying, establishing, and tracking the practices around the organisation.
Since reimbursable employee expenses are significant on a majority of organisations’ balance sheets, it’s a great opportunity to build a cost-conscious culture. A majority of businesses delay, scale back, and cancel initiatives that need capital expenditures. As cash is an imperative factor for businesses, every aspect of liquidity is valuable.
Empowering Employees about the Importance of Transparency
Equity lead and transparency contribute to a culture of accountability, thereby helping thwart fraud, keeping expenses manageable, and supporting profitability. Encourage all your department leaders to read & give feedback on the expense policies.
Make comparisons across different departments & reward excellent cost-saving strategies. Never underestimate the worth of incentives, given the growing trend of gamification regardless of the business size.
Finally, encourage managers to push back to contribute ideas and make the expense approval procedure more seamless. By following these expense management strategies, a business can streamline workflows & move towards an accurate and simplified reporting process in 2022 and beyond. In that regard, Monite is your one-stop choice for compliant services based on cost management, AP Automation, invoicing, etc.