With the advent of globalization and rapid technological advancements, business expansions, both local and overseas, have become a common trend in the business industry, leading to the annual rise of the global economy.
According to the Global Business Travel Association, the growing strength of the global economy also means an increase in travel prices by 4 percent in 2018. This has made the management of travel expenses become an important factor in managing company costs, now more than ever.
Travel and expense management is a significant part of any organization, but the entire process, when done manually, can be tedious and time-consuming. It can also be prone to human error. This is where Travel and Expense Management systems come in. These days, more and more companies have turned to using Travel and Management systems to help expedite, organize and control their company’s expenses.
While some businesses are small enough to think that incorporating a Travel and Management system into their company’s administration is unnecessary, there are undisputable signs to know whether or not your business is ready to take on a reliable Travel and Expense Management system, before things can quite literally go out of control!
5 Signs Your Business Needs an Expense Management System
· Your company travel policies are unclear and confusing.
Are your employees and the cost management department often confused about their interpretation of the company’s travel policies? Are your travel policies generally difficult to enforce?
When it comes to business travel and mobility, one of the first things that can get lost in translation is the company’s travel expense policies. With so many factors to consider on business trips, it can be difficult to enforce these travel policies, especially in the face of unexpected issues that could arise during the course of the trip which can result to overspending. That is why it is important that both the company’s administration department and the traveling employees clearly understand the travel policies.
Even so, using Travel and Expense Management systems with mobile application support gives both parties a clearer view of whether or not company travel policies are being followed in real-time. If a company is partnered with certain hotel and restaurant chains, as well as trusted transport companies, Travel and Expense Management systems also help take these costs and discounts into account to avoid overspending due to unexpected travel expenses.
· When your travel and expense processing is inefficient and disorganized.
Does your administration department receive a lot of paper travel reports and receipts? Does processing for business travel costs take a lot of time?
One of the most common ways to submit travel and expense reports is by collating all the data into a spreadsheet and presenting them, along with all the paper receipts acquired during the trip, to the department responsible for overseeing expense and travel costs. However, manually processing expense reports make it difficult to stay up-to-date of incoming information. This is made even more challenging when multiple employees send in their information at the same time. This is tedious, stressful and time-consuming work, for both the traveling employees and the expense manager.
With so many data to deal with at the same time, manual processing makes the process prone to human error. This makes it easy to miss out on signs of fraud, whether they are committed intentionally or otherwise. Manual submission of expense reports can also affect an employee’s productivity, as they tend to spend so much time preparing their travel and expense reports than they should.
Travel and Expense Management systems ensure that toting around paper receipts are a thing of the past. It allows the traveling employees to enter the data of their travel expenses in real-time, and presents these information instantaneously in a more organized and efficient manner. Photos of the receipts for all the expenses incurred can be taken and submitted online, and managers can be notified of any updates and changes immediately.
· When employee reimbursements are often delayed.
Another challenge that travel and expense management has is the prolonged process of reimbursements. Having to look through spreadsheet and paper receipts manually is a time-consuming activity. Employee reimbursements have to go through an approval process that, when done manually, can take ages to get through. This can leave employees unsatisfied, reluctant and in some cases, even build-up unwanted resentment.
Travel and Expense Management systems can certainly cut the waiting process for reimbursements in half, as all the data needed to authorize reimbursements have already been stored in the system and will be ready for perusal and approval post-trip. This ensures that company efficiency and employee satisfaction is being met at the same time.
· When transparency of travel costs and expenses is lacking.
Transparency in all company ventures is very important. More so when your company has many employees traveling across the country or abroad for business trips. Keeping track of what an employee spends on hotels, transport and even food can be an impossible feat when you rely on manually processing travel and expense reports. Being unable to have visibility of data is a major challenge in a company’s efficiency and effectivity.
Travel and Expense Management systems help keep all data in one place, making it easier to see where the budget allocated for the business trip is being spent. Managers are given complete control over company travel expenses. They can be sure that extra costs and expenses outside of the pre-approved budget are approved of first.
· When expense trends for travel costs and employees go unnoticed.
Manual travel and expense reports only give managers a view of the travel information at only a single point in time. This makes it challenging to read the spending trends the traveling employee employs during a business trip. Increase in travel prices are also trends that should be kept track of, in order to change the company’s annual budget accordingly.
Travel and Expense Management systems help keep everything in place and give managers the data they need to enforce action according to the changing global and employee trends.
Travel and expense management can easily get out of control if you don’t read the signs early enough. With how fast information flows these days, efficiency, effectivity and productivity are crucial.
Pixmettle’s Travel and Expense Management system is designed to help SMBs manage their travel expenses. Contact us now to know more about how our services and Travel and Expense Management system will help your company stay on top of your annual expenses.