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Expense Management Automation - Breaking The Myths

Jul 7, 2017 12:07:21 PM

Expense automation serves as a helping hand to not only claiming reimbursements faster, reduce the expense processing costs and time assigned to expense reporting.

Not only does it increase employee satisfaction but also reduces the burden that comes with manual and semi-automated expense management systems. However, 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 the true perspective on expense automation.

  

Expense management myths

  

Myth:  Expense Management Automations is complicated and unnecessary.

Reality:  Companies may be hesitant to switch from the good old paper expense reporting system. Some might simply avoid it claiming it is hard to implement and even harder to use. In reality, the system is about 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 place. With the benefits that come with the software, the transition is completely 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 in revenue generating activities, making the employees much more efficient in the long run.

 

Myth:  Expense Management Automation will not 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 filing expenses. Therefore, it is important to have a flexible system that can fit right into the company. Expense management system are often designed keeping this in mind. It is simple to create accounts for individual employees, keep your policies in check and generating expense reports is done with the click of one button. 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, freeing up their time to focus on other tasks.

 

Myth: Expense Management Automation does not prevent fraud.

Reality:  Reimbursement frauds can range from mileage fraud to credit card fraud and companies put in a lot of resources to prevent it. Expense automation comes with a strict policy compliance program. With the company policies fed into the system, 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 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: 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 big upfront cost. It is likely to be a monthly payment system that gives your company the chance to get used to it at it’s own time. There are no overheads required. According to research, companies already using an automated system have brought down processing costs by up to 60%. Still looking for a reason not to invest?

 

Myth: Expense Management Automation is unnecesary for Smaller Companies. Smaller ones manage expenses manually.

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. Zivame was able to reduce the processing costs by about 75% and the time invested into expense management by about 50%. To know more about it, access for free our case study on how Zivame was able to reduce processing costs through automation. The benefits clearly made the investment worth it and similar 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 a tight control over their expenses and with not as much manpower dedicated to expense control as they might need, 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.

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