5 Ways Digital Expense Management Benefits Small Business
When it comes to expense reimbursement, you might think only
of traveling expenses to attend trade shows or conferences – things that your
small business might not do. But there are other expenses that your employees
could be paying for out of pocket – like when you send someone to the office
supply store to pick up ink for the printer.
No matter what business expenses your employees incur, you
need a way to track their reimbursement requests and pay them back. Manually
filing and processing expenses can often be time-consuming and frustrating. You
have to sift through piles of spreadsheets and receipts, while your team must
wait for you to review and approve the request. You can automate the process
and make it easier for everyone involved by utilizing a digital expense
management system. Keep reading to learn five ways expense software can help
your small business.
1. Eliminates human error
Paper expense reports leave a lot of room for mistakes. Someone has to review each expense, match it with the corresponding receipt, credit it to the appropriate person, and remember to pay the person. With a digital expense management system, the receipt attaches to the correct expense and to the employee who submitted it. If you choose a program that’s combined with payroll, like Workful, approved requests will automatically be included in the worker’s paycheck. You won’t have to worry about forgetting to reimburse them, paying them the wrong amount, or assigning the expense to the wrong person.
2. Enforces your policies
It’s normal to require your team to submit a receipt with
every reimbursement request. You can set up your expense management software to
prevent people from sending requests without a receipt. If your worker tries to
submit a reimbursement without one, they’ll be notified immediately and correct
their mistake quickly. You won’t lose time going to the employee and asking
them to resubmit.
Your system will also notify your staff the moment their reimbursement
is approved or denied. This gives your workers a clear response in a timely
fashion, and they can come to you with any questions. If a request is denied,
you’ll be able to quickly explain what they need to do next time to ensure they’re
following the rules.
If you choose an expense management system that offers a
mobile app, your employees will be able to submit their reimbursements in real-time.
They can use the camera on their phone to capture the receipt, so they won’t
have to sort through records when they get back to the office. If you reimburse
your team for mileage, an app will let them submit their request the moment
they arrive at their destination. They won’t have to worry about writing down
how many miles they traveled or calculating it later.
A mobile expense management system will also increase your
flexibility to do your job. You can review and approve requests from anywhere –
even if you’re out of the office for a few days. As your company grows, you’ll
also be able to assign permissions to your managers or supervisors, so they can
review their subordinates’ reimbursements and approve or deny them, further
freeing up your time.
Does your staff ever seem frustrated with how long it takes
you to pay them back? The thing is, when you have to sort through paperwork, sometimes
you need to put off reviewing expense reimbursements until you have more time. But
with digital expense management software, you eliminate the gathering and
sorting. Instead, you can quickly review requests and approve them with the simple
click of a button. You’ll take care of your responsibilities, and your
employees will be paid back, all in a timely fashion.
5. Improves organization
With a digital expense management system, everything is
stored online. You’ll no longer have stacks of expense reports and piles of crumpled,
faded receipts that are difficult to read. At the end of the year, you can
print a single report showing all the expenses you reimbursed your staff for,
including what category each belonged to, so you can more easily complete your
business’s income tax return.
Workful will even let your employees record expenses without
requesting reimbursement. They’ll also be able to print a report showing what
expenses they personally incurred to help them with their tax return.