Did you know, 19% of expense reports have errors, and an average expense report takes 20 minutes to complete?
It's estimated that, since 2005, there have been 10 billion data breaches concerning expense reports. Believe it or not, many data breaches begin with a hacker getting a simple piece of information, such as a discarded credit card number, or a shared email.
To combat this threat, if used correctly, an expense report automation software will keep your business' private information both accurate and secure. Here we'll break down for you what an audit trail is and the quantitative and qualitative benefits of using an expense tracking software.
What is a digital audit trail?
A digital audit trail contains the entirety of records that document each step in a business transaction. It includes essential financial information, such as invoices and receipts. It also includes associated contracts, payroll records, and all things related to a business and its transactions.
Most businesses used to handle their expense reports manually. Today, however, many companies reap the benefits of using a digital audit trail for all of their business transactions. In addition to providing the necessary information required for doing taxes and keeping up with expenses, the best expense report softwares also offer proof of compliance and operational integrity. This ensures the business does not get questioned or audited down the road.
Expense report automation helps to identify areas of non-compliance and avoid accounting challenges. Additionally, it is also much easier to access specific user information, dates, and times associated with a transaction using a digital audit trail.
Quantitative benefits of a digital audit trail
Did you know that businesses spend approximately $1,425 for every employee they send on a trip?
When all employees and managers input their data into the same secure software, from wherever they are in the world, the information stays streamlined, accurate, and is less time-consuming. Plus, it eliminates room for fraud across the board. It also holds employees accountable, and it keeps information safe from hackers.
Here are just a few of the quantitative benefits you'll enjoy when you opt to use the best tools for digital expense reporting:
- Digital audits eliminate fraud
- They provide proper documentation
- Cut down money and time wasted on expense reporting
- Provide a big picture of your business at any given moment
Qualitative benefits of a digital audit trail
Expense reporting doesn't generate revenue, but it's a necessity for every business. If you're not using a digital audit trail, those expense reports could be draining your company's resources.
Your business will benefit if you opt to use a TEM solution for maintaining your audit trails. Take a look at some of the essential qualitative benefits of using a digital audit, rather than a manual one:
- It adds a layer of transparency and accountability
- It saves time and effort associated with expense reporting
- It keeps you compliant with the IRS standards and laws
- It enables you to troubleshoot ideas and concepts
How can Fyle help with a digital audit trail for expense reports?
Expense report automation will cut down on the time and effort it takes to keep up with an audit trail manually. Additionally, a digital process saves money because it is safer, easier to use, more consistent, and eliminates room for fraud.
With a digital audit trail, you'll eliminate human error and keep your company up-to-date with standards and laws. Plus, managers and employees can troubleshoot and stay on the same page, wherever they are in the world. Here's more on how you can increase financial productivity using Fyle's audit trail.
Are you interested in testing Fyle out? Schedule a demo so that we can help!