If you are trying to decide whether you can cost-justify online expense reporting for your company, consider this: companies who spend an average of $300 or more per month for each employee will typically save more than expense report automation actually costs.
Automation is the key to controlling and reducing operating expenses. Why?
Reason #1: Human Errors Cost Money
Entering data manually increases the likelihood for errors. According to The Association of Work Process Improvement, when data is keyed manually the average error rate is 2-4%. Since each expense reimbursement claim usually includes a number of steps from initial claim to approval, the overall error rate could be much greater over the life of the document. Errors can be expensive; cutting that error rate can add to the company's bottom line.
Reason #2: Manual Processes are Time-consuming
Many companies spend all their time manually creating, collecting, approving and auditing expense documentation, and little time analyzing where that money is actually being spent. Spending time manually filling out complex travel and expense reports takes traveling employees’ focus off their main job.In addition, the lack of easy accessibility to the expense data means employees often take up valuable time of accounts payable managers, who spend time looking up details on expense reimbursements when employees inquire. Time is also lost when employees must walk around the office to obtain required signatures for purchase requisitions.
Automating your expense tracking report saves time. Purchase requisitions, invoices, and expense reports are all automatically directed through company approval processes. Employees can easily access data regarding these reports, preventing valuable loss of time on task. Diverting time spent on non-revenue producing tasks back to the employees' main job function results in better profitability.
Reason #3: Cost-cutting Helps the Bottom Line
If expenses are not kept in line companies tend to waste money at a very high rate. Expense report automation has been proven to be one of the most effective ways for companies to reduce costs without cutting staff or increasing prices. Every dollar saved immediately increases profitability.
Online expense reporting frees up accounts payable staff, which enables them to spend more time on revenue producing tasks. Administrative costs may be saved because of this, either by directly reducing employee hours, or by re-directing employee efforts to other more important work.
Reason #4: Corporate Spending Policies are More Easily Enforced With Expense Report Automation, Saving the Company Money
A company's spending policy is only effective if it is consistently enforced. Online expense reporting enables employee awareness and adherence by outlining company policy as workers fill out reports. Since spending policies are enforced automatically and applied evenly throughout the business, the result is proactive enforcement of corporate spending policies, and thus prevention of out of policy spending.
Expense report automation allows companies to determine limits on airfare, hotels, rental cars, meals, and other categories. Amounts over specified limits may be set to automatically be rejected or capped at the set limit. Employees will see any overages as they do their online expense reporting and thus be less likely to submit a report with errors, which reduces processing time. Managers are able to override spending limits on a case by case basis. A large percentage of the savings realized is because spending caps are adhered to more consistently.
Reason #5: Online Expense Reporting Puts You in Control
As an expense tracking report moves through its steps, automation gives you control by precisely defining, managing and monitoring the interactions between people and systems. Automation can be applied to manage all operating expenses, including purchasing and payroll, incoming invoices and travel and entertainment, providing a comprehensive, real-time view into how your company spends money.
With an online expense reporting system, budget data can be imported to manage budget vs. actual at the point spending is being requisitioned. Managers can see specific budget information in real time and analyze how an invoice, requisition, or expense report will impact their department specifically and the company overall.Home › Expense Report Software › 5 Reasons Online Expense Reporting Can Save Money
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