Whether you own a startup or a big establishment, you should adapt to the ever-changing industry in order to thrive. You have to be competitive, and maintaining such character requires a firm control on your finances, to begin with.
Every single penny counts; and miscalculated expenses will have an adverse effect in your business if not properly resolved. If at this point, you are still manually assessing your corporate expenses, then there is a higher chance that these reports may be inaccurate. Inaccuracy on reports does not only pose corporate risks, it also hinders you from maximizing your productivity.
Some business owners and CFOs do not want to take their chance with a more systematized expense system; they have come to think that a manual expense management works just enough in reimbursing employees and getting their bills paid. Well, technically, it does. But small inaccuracies, when accumulated, can be a bigger problem than you initially imagined.
Here is where the need for a cloud-based, automated system becomes more relative.
So how does a typical employee spend most of his working hours? Making reports, you bet. Now imagine being able to simplify your daily tasks because you no longer have to manually create your input. Imagine being able to keep track of all the important records even while you’re on the road. If these aren’t enough to convince you, let us then tackle the ways your manual expense management is actually damaging your company.
You are more prone to fraud than you ever imagined.
Corporations that still rely on traditional spreadsheets usually spend a painful amount of time verifying ever single purchase incurred. Human errors are inevitable, which means there are certainly some details that we tend to overlook. It is scary to think that it is totally possible to get these reports manipulated through tampered receipts and vague expense claims. There are even some instances where an employee simply creates an estimation of his expenses during corporate travels, which means there is no exact breakdown of expenses that has been provided. It’s surprising how this practice is still accepted at this point, without considering how much it hurts the corporate funds. What’s even scarier about these expense management mistakes is that, whether they are intentional or not, they are definitely considered as fraud – and fraud is associated with one particular thing: non-compliance with the law.
Believe it or not, not every employee is well-acquainted with your entire corporate policy. Every employee has a different approach and expectation in terms of corporate travels and expense claims. Some of them may have been used to their previous company’s policies and are applying the same method in their current job. With automated solutions, it is easier to implement rules that are fair and consistent, and when everyone follows one organized system, frauds become easier to detect.
Compliance with the law is always a top priority of any establishment, as it can easily damage the company’s reputation. If proven guilty, the company should either shoulder heavy fines or be shut down. A manual expense management prevents your employees from following a concise policy, simply because it is very easy to bypass.
Just because your employees are spending a bunch of hours doing reports doesn’t mean they are actually being productive
When an employee submits an expense report (in which he devoted a lot of time working on), it will go through another manual verification process, which is why it usually takes time before an employee receives reimbursement. To make the situation worse, if the person responsible in approving these reports is not available at the moment, or a certain purchase requires more detailed information in order to be approved, the entire process will be delayed – making the workflow all the more sluggish. You will never even know why these claims are taking too long to process, because you don’t get real-time updates.
On top of that, compiling all the receipts while you are in the middle of your trip can be a stressful task for the traveling employee. At the end of the day, an employee spends more time creating his report rather than doing more relevant things like creating presentations, organizing his plans or keeping in touch with his clients. The hours spent on creating reports, along with the employee’s wage per hour usually comprise the cost of a manual expense management.
It hinders corporate growth.
Not investing on an automated expense solution doesn’t necessarily mean you are able to save money. If your company is suffering from financial issues without you realizing it, this could eventually lead to a bigger problem. And by the time you become aware of this, it has already become severe.
Employee productivity is an essential key to the growth of any business, but when you allow your employees to be stuck on less important things than actually delivering results and closing deals, you are also hindering your company to grow.
This is what an automated expense system promises: accurate solution on daunting reports and a clearer insight on what your employees should really be doing. If they are able to create a financial report real time, and update it every now and then with just a click, you are actually saving probably hundreds of working hours without compromising the quality of their work.
Take, for instance, the convenience that PixMettle has to offer. Since it is mobile-optimized, it will allow your sales representatives to monitor their expenses even when they are on the road. They don’t really need to wait up until they arrive home, or in the office, to manually list down their claims. They can keep track of their expenses in just a few taps on their mobile phone.
When you own a business, you are more likely looking forward to expand which includes opening new store branches and offices. This would require more employees to travel, followed by bigger expenses and a taller pile of reports to get done. This growth would not be possible if you continue the practice of manual expense management within your company. Growth means imposing more precise regulations and accurate expense claims. You can’t expect a good return of investment without actually investing on a reliable solution for added productivity and security.
It drains your employee and leaves them unsatisfied
When your employees are on a trip, and have been out the whole day meeting clients, conducting presentations, trying to close a deal, or simply hunting prospect targets, going back to their hotel does not mean they can finally have their much needed rest. They have to face their computers once more and list down every single item or service they have acquired, along with the details to prove these claims. But when they finally use an automated system approved by you, they can submit these reports easily simply by taking a photo of the receipt, and the app itself will do the rest for them – fast and accurate.
Manual expense management may have been ‘effective’ in the past, but when you aim to make your company bigger, you should acknowledge the underlying financial issues first because some of them may be too small to be noticed – but when this practice continues for so long, with more and more employees filing inaccurate expense claims, you may be surprised by how much it can actually hurt your company in the long run. The lack of in-depth maintenance causes many corporations to lose their funds until it affects their entire organizational chart. Avoid this mistake.
Seek for a reliable software that would meet your corporate needs. Ask for sample packages, conduct surveys and consider running a demo. An effective automated solution should be able to track possible issues even before they actually take place. Take the initiative to promote changes by making the most of technology; consider different scenarios and weigh each of them. What you may not know is that, a huge amount of working hours can be accomplished faster with just a smaller number of employees – and that’s when you are going to see the difference. Improving corporate stability includes investing on tools that will help you achieve your goals. It is not an easy decision, of course, that is why you need to be smart and straight forward in acknowledging what you really need. Moreover, you need to train your people how to maximize their productivity without compromising their time and concentration because after all, an effective business owner also considers his people’s needs; because they are the very people who will help you make your business flourish. It is only reasonable for you to teach them how to be the most productive version of themselves with the most efficient tools available.
Pixmettle will help you achieve those things, all you need to do is to determine exactly what you need to change, and we’ll figure things out for you and help you initiate these changes. It’s about time you invest on a smart solution and enjoy the benefits that come with it.
Visit our site now and we’ll listen!
To help with your decision to avail or not to avail of an automated expense management tool, have a go at reading these 5 Signs Your Business is Ready for an Expense Management System.