Did you know expense management automation can help you claim reimbursements faster, reduce the expense processing costs and time assigned to expense reporting?
The current scenario of expense management automation
Automating expense management software not only increases employee satisfaction but also reduces the burden that comes with manual and semi-automated expense management systems. However, as per a recent report, over 55% of surveyed companies claim they do not want to make the switch over to fully automated expense management solutions. Many companies avoid automating the reimbursement process due to the several myths that are associated with it.
This article will tackle and debunk some of these myths and give you a true perspective on expense automation.
Myth 1: Expense Management Automation is complicated and unnecessary
Reality: Companies may be hesitant to switch from the good old paper expense reporting system. Some might merely avoid it claiming it is hard to implement and even harder to use. In reality, the system is just as easy to use as any other app.
In fact, most solutions are also available as an app, giving employees the ease to report their expenses from their smartphones at any time and any place. With the benefits that come with the software, the transition is entirely worth it.
There is minimal training required and employees and managers already using the system claim it is easier and less time consuming than having to record expenses or having to check for compliance issues manually. The time saved can be spent on revenue-generating activities, making the employees much more efficient in the long run.
Myth 2: Expense Management Automation doesn't support complex hierarchy and approval workflows
Reality: Every company’s structure is unique, and so are its business processes. Keeping this in mind it is understood that the company will have different methods of fyling expenses. Therefore, it is essential to have a flexible system that can fit right into the company. An expense management system is often designed keeping this in mind.
Benefits of using an automated expense management software:
- It is simple to create accounts for individual employees
- Admins can keep policies in check and get real-time insight into expenses which are flagged for policy violations
- Employees can generate expense reports with just one click
- The system does not replace any department or anyone’s job. Thus, the approval workflows can remain quite the same.
The only change will be the ease with which managers and finance folks handle employee expenses with the help of an efficient expense management system. Further, having an expense management software can help in freeing up time to focus on other tasks.
Myth 3: Expense Management Automation doesn't prevent expense fraud
Reality: Reimbursement frauds can range from mileage fraud to credit card fraud. Companies put in a lot of resources to prevent fraud as it has a direct impact on the revenue of the company. Expense automation comes with a strict policy compliance program.
With Fyle, company policies fed into the system to validate and flag expenses for policy violations. All expenses are automatically checked for compliance, and the policy violations are instantly detected. This completely eliminates the need for the staff to check them manually. With real-time evaluation, it is actually harder for people to dupe the system or try to slip anything under the admin's nose. With the amount of accuracy that comes with the setup, companies can ensure that fraud will not be a concern for them.
Myth 4: Expense Management Automation is expensive
Reality: An initial investment is, of course, required. This is the case for any system you want to adopt. However, the return on your investment consisting of long-term savings and protection from risk is likely to help keep your bottom line in check.
Moreover, an expense management solution does not come with a significant upfront cost. It is likely to be a monthly payment system that gives your company the chance to get used to it, as per your convenience. There are no overheads required, as well.
According to research, companies who are already using an automated system have brought down processing costs by up to 60%.
Still looking for a reason not to invest?
Myth 5: Expense Management Automation is unnecessary for small businesses
Reality: Regardless of the size, it is vital to take all measures to prevent expense fraud. Whether your company is big or small, old or new, automation of expense management can only be beneficial.
As per Zivame, the following were the benefits they experience with the adoption of an expense management software:
- Reduce the processing costs by about 75%
- Reduced time invested into expense management by about 50%
Want to know more how an expense management software can help your business?
Here's our case study on how Zivame was able to reduce processing costs through automation. The benefits clearly made the investment worth it and the benefits often echo in smaller companies as well. In fact, smaller companies or startups may benefit from it faster than larger ones.
Startups need to have tight control over their expenses and with not as much manpower dedicated to expense control. The app serves as the best alternative. Understanding that every cent counts, these systems offer lower processing costs and better transparency at the best price.
With accurate, real-time expense reporting, compliance checks and smart approval workflows, it eliminates the pressure of a manual or semi-automated expense system to a great extent. There is no reason to avoid such a system that could prove beneficial to your company and its bottom line.
Fyle is proof that these myths are nowhere close to the truth. We work hard to debunk them and provide our users with the best possible expense management solution.
Learn more about expense management automation today.