The most painful activity after returning from an exhausting business trip is reporting your business and mileage expenses. The lack of receipts makes logging mileage all the more depressing. As a result, both the employees and the employers have no accurate data to rely on to make the process easier.
While manual process may seem to get the job done on the surface, it can prove detrimental to the financial health of your business.
Improper mileage tracking might lead to two possible situations for stakeholders
1. The employees may incur losses due to any unreported miles.
2. The organization may suffer substantial losses due to fraudulent claims.
Here’s how it can affect the financial productivity of your organization:
1. Employees waste productive hours reporting expenses, explaining policy violations, and more. This results in them spending crucial time which they could have utilized, otherwise.
2. Employees may also feel demotivated due to the lengthy process of reimbursements and delayed reimbursement cycles.
3. Finance teams have little to no insight into policy violations and fraudulent claims unless they manually sieve through hundreds of receipts.
4. Finance teams have no analytical insight to understand the spending categories, patterns, and trends. This further disables them from making well-informed business decisions to save their resources.
5. Employers and business owners may end up losing money due to unnecessary leaks, which could’ve been avoided otherwise.
Why traditional methods of tracking mileage prove to be inefficient:
Your employees are your champions. Your sales folks often travel both locally and internationally to help meet clients and close deals. This may require them to have multiple pitstops and numerous mileage entries on a daily basis. To add to their woes, they also need to keep track of business expenses incurred while dining and accommodating their clients.
Once done with their client meetings, they also need to fyle for their expenses. This means hovering through hundreds of receipts and manually sorting them based on clients, projects, or other such categories. Once sorted, they also need to manually enter these miles and business expenses on spreadsheets.
Some mandatory categories for mileage tracking are:
- Accurate dates of travel
- Miles – Mostly, assumed
- Start and end locations
- Purpose of travel
- Miscellaneous spends
These entries need to be logged in and then submitted for approval. This can prove to be quite cumbersome for your frequent business travelers. Not to forget, the accompanying paperwork that goes in for manual verification to the finance folks. This spells disaster for both the finance team and your employees. Here’s how.
Here’s why employees find traditional mileage tracking frustrating:
- Tons of paperwork and spreadsheets
- ime-consuming process of manual data entry
- Unreported miles will lead to a loss
- Delayed reimbursement cycles
- Hampers financial productivity
Employers and finance teams find traditional mileage tracking frustrating because:
- It requires manual rechecking of reports to validate logged in miles
- Doesn’t let you customize fields to optimize spends
- Provides little to no insight on spending trends and policy violators
- Cannot identify mileage fraud.
- Reduces productivity of the finance team.
Manual trip reports are repetitive, mundane, and can severely affect the employee experience. Keeping employee satisfaction in mind, we have seen a growing trend where businesses are moving towards automation of mundane tasks. Automation has helped simplify various processes, and mileage tracking is one of them.
Modern Mileage Tracking And Expense Reporting
An efficient mileage tracking app or software will be beneficial to both employees and businesses. An automated expense management software can come in handy here as it:
- Seamlessly facilitates mileage reimbursements
- Enables easy and well documented tax deductions
- Provides real-time insight into business and travel expenses
- Enables finance teams with a centralized dashboard to get business insights
- Helps cut down unnecessary leaks
Along with streamlining your expense management process, it can help in seamlessly logging in mileages, run real-time policy checks, detect policy, and more. It also helps curb fraudulent claims and allows you to stay audit-ready at all times. Therefore it accelerates the reimbursement cycles by up to 5x.
Let’s dig deeper on how automated mileage tracking can iron out the kinks in traditional mileage tracking methods.
The benefits of an automated mileage tracking app:
Automation is always a million steps ahead, and one of the reasons is multitasking. Modern expense management is all about multitasking. With automation, users can fyle all sort of business expenses under one platform. An automated expense management software can help you seamlessly scan your receipts, fyle travel expenses, request for cash advances, track mileage and so much more.
How an expense reporting app with mileage tracking benefits employees:
- Automatic tracking of trips and fuel receipts
- No manual data entry due to automatic data extraction
- Automatic syncing with the cloud to keep a history of all your trips
- Easy categorization of trips as personal or business while fyling expenses
- A decrease in the time spent in fyling and claiming for expenses
- Shorter reimbursement times
Here’s how it benefits employers:
- Enhanced employee experience
- Eliminates mileage fraud due to pre-determined rates for mileages
- Centralized platform to fyle expenses
- GPS-enabled feature to get accurate mileage
SUGGESTED READTravel and Expense Management with Fyle – Trip Reports
How Fyle’s mileage tracking and expense reporting stands apart
Fyle helps you simplify the process of mileage tracking even more. We try and go beyond automation and bring all your needs in one place.
How Fyle’s mileage tracking and expense reporting benefit employees:
- Unlimited mileage tracking
- Accessible on any mobile platform
- Make expense reports on-the-go
- Unlimited receipt scanning for any receipt incurred during the trip
- Reduced turnaround times
How Fyle’s mileage tracking and expense reporting benefit employers and finance teams:
- Google maps to get accurate readings to validate logged in miles
- Customizable fields as per projects to help document entries better
- Well documented expense reports and audit trials
- In-depth insight into business spends, patterns and more
- Policy checks to keep the business trip expenses under a limit
Fyle’s magical powers go way beyond mileage tracking. We can do a lot more.