Let’s accept it -
are essential. They are issued by the organizations to help cover employee business expenses. In most cases, the forms of payment are limited, yet different. They also are dependent on the expense type and amount. Cash advances specifically help complete minor business operations, where other payment forms are not a viable option. cash advances
Some of the business operations that cash advances can help with are:
Daily meals Local transport Utilities Today’s broken cash advance management
Since every organization has multiple projects, business meetings, and travel expenditures, employees receive sufficient funds to cover their expenses. Managing these advances and subsequent expenses is pivotal to the company's accounting.
Improper or traditional cash advance management can expose the company to the following risks:
Open doors for due to independently running processes expense fraud Leave room for errors and delays in the reimbursement process, due to manual processing Doesn’t consider exceptional/urgent requests Violate multiple travel and expense policies when fulfilling urgent requests Hamper employee experience due to a crippled process
To avoid these risks, it’s imperative to understand where the problems lie. One major flaw with the cash advance management today is the friction-heavy manual processes.
Employees raise a cash advance request via email or physical paper forms Managers approve the cash advance request via email or physical paper forms In case of exceptions, managers approach their higher admins to get additional approvals, causing further delay Employees are usually in the dark about the cash advances request Lack of real-time communications regarding payment processing leaves room for hampered employee experience Lack of information leads to discrepancies in employee expenses reported and the expectations set by the organization Lack of accounting for non-reimbursable expenses Additional effort to create independent reports for non-reimbursable expenses SUGGESTED READ: Expense reimbursement policy best practices for your business Automation of cash advance management
Automation has proven to be a promising solution to
that manual processes bring to the table. Cash advance management is no different. solve T&E challenges
For employers, here are some benefits of automating cash advance management:
Helps organizations close their books on time Ensures easy refund collection process Provides end-to-end visibility of non-reimbursable expenses Eliminates the possibility of expense fraud, owing to duplicate detection through technology Runs and flags fraudulent, duplicate and inconsistent requests real-time policy checks Provides a seamless employee experience Ensures timely and hassle-free reimbursements
For employees, here are some benefits of digital cash advance management:
Ensures are centrally managed (and not lost in transit) business receipts Enables you to be in-the-know about the progress of payments and raised requests in real-time Promotes compliant behavior through pre-submission policy checks Eases collection of payments Takes care of additional/urgent requests seamlessly Cash advance management with Fyle
, we understand that efficient cash advance management is imperative to maintain your organization’s financial health. Fyle
Here’s how Fyle transforms the cash advancement process for any organization:
Employees raise an advance request through Fyle’s or web mobile app Managers are notified in real-time to expedite approvals Pre-submission policy checks leave no room for monkey business Advance request policies are set by employers to promote compliant employee behavior Post-approval, the account balance is created for the employee When an expense is fyled against the advance, the amount is directly deducted post verification Refund collection is automated in case of unused advance balance Here’s how Fyle helps employers manage and centralize their cash advances: Easy and seamless refund collection Effortless handling of exceptions to stay compliant Automates repeated approval workflows Customizes approval workflows, according to employee groups, requested amounts and more Better enforcement of policies Pre-submission checks and duplicate detection to prevent expense fraud Better visibility on issued cash advances for a trip or project Easy accounting for non-reimbursable expenses
Here’s how employees manage their cash advances better with Fyle:
Centralize all engagements around cash advances Be in-the-know about their requests, inquiries, and refunds Gain insight into non-reimbursable expenses Easy approvals for cash advances Overall better turnaround time
This is not the end of how Fyle can help you manage cash advances. There’s a lot more. As a
, we can make the process of T&E management software expense reporting and reimbursement seamless. Schedule a demo to see how!