Many businesses still rely on traditional methods of expense management which makes the finance teams to face several challenges with travel and expense management.
FREMONT, CA: Business who will, in general, utilize traditional expense management reports or disregard cost detailing all together will, in general, endures after some time. Hidden costs, fake cases, ill-informed decisions will hamper the development and size of your business. In this article, we take a look at the top difficulties money groups face with their movement and cost the executives and how they can defeat these difficulties.
Here are top travel and expense management challenges faced by finance teams.
• Unclear travel and expense policies:
Most of the times, travelling employees don't read the plans correctly provided by the organizations. It will lead to out-of-policy expense claims, policy violations, and more back and forth for the finance teams. This translates into productive time wasted over something that could have just used the help of automated software.
As an essential method for remaining compliant, organizations ought to consistently guarantee they gather receipts as proof of business expenses.
Further, these receipts should be accurately archived and accessible in one place. In any case, this isn't the situation when it comes to businesses that use expense report templates to manage their business expenses.
• Manual reviewing and approving of expense reports:
The employees have to enter all their expenditures into an expense report template manually. But on the other hand the finance team have to bear the pain of it as they have to collect, verify and approve or reject these expenses manually within set deadlines.
Moreover, they additionally need to distinguish claims that are not upheld by the expense policy. When distinguished, they stand up to workers to legitimize such spends. It converts into an expensive and time-consuming procedure.
• Delayed employee reimbursements:
The organizations which use traditional expense and travel management means to suffer from delayed payments. Each time your finance team notices an expense claim that violates the policy; the entire expense report gets delayed. This further results in a decrease in employee morale, as their money gets stuck in the payment process.