Why Expense Report Software Matters More Than Ever
Global health concerns are impacting every aspect of our lives, from the way we take care of our families to the way we work. Businesses across the world are working hard to respond to new developments and help employees adjust to new routines.
Fortunately, an abundance of virtual tools can help colleagues stay connected and make progress on work goals, even if they can’t share an office. Expense report software can help mitigate business losses and set you up for success, even in an uncertain economy.
Save Time with Expense Reporting Software
Imagine if you had to send sensitive financial documents via paper mail from employee to manager, and then manager to one or more finance team professionals! The time and security concerns of keeping track of documents can turn into a major headache.
>> Related: Guide to Evaluating Expense Management Solutions <<
Even email has a high risk of human error. Unwieldy attachments, emails that go to spam, or emails missed in the endless inbox slog are potential risks. Email already takes up approximately 28% of a typical worker’s day. It’s worth separating critical tasks like expense management from the constant flow of messages.
Automating expense management cuts down on time needed to locate, store, and share important expense records.
Expense Report Software Saves Money
Processing expense reports manually costs roughly $26 per report. With a fully automated system, that figure drops to just under $7 per report! Cost-saving measures are always an important concern, and this is especially true as businesses consider their best strategies to face a possible economic recession.
In addition to saving on the face value of processing each report, automation can significantly reduce the risk of expense reimbursement fraud. Fraudulent expense reporting costs businesses a median of $40,000 and takes 2 years to detect. Updating your system can save you in operating costs and risk management.
Keep Shareholders Informed
Your company’s response to COVID-19 challenges can affect how customers and shareholders view the business. Actions you take now may shape your future success. Clear planning and communication can build trust, even in uncertain times.
Not to be glib, but if you’re struggling to collect expense documents from employees, it’ll be hard to give shareholders the financial updates they want, too! Organizing expense reports can help you present more complete information about how your company is handling event cancellations (and any compensation or refunds), or managing supply chain shortages.
The more you can stay on top of every aspect of your normal operations, including expense reporting software, the more prepared you’ll be to reassure shareholders that you’re following a sustainable plan.
File for Claims or Relief
Business owners are watching the news for economic relief programs, as well as health news updates. You may be searching for answers about whether you can claim insurance coverage for lost revenue, or whether you’re eligible for emergency grant funding.
In terms of insurance, many policies are not covering business interruption losses or damages due to bacteria or viruses, including COVID-19. You should review your policy closely in case it offers different coverage, but a large number of businesses may struggle to file a successful insurance claim. On the other hand, insurance providers could potentially approve claims for certain types of coverage:
- Contingent business loss, from affected suppliers (e.g., grounded airlines)
- Civil or military authority (e.g., mandated closures)
- Leader property insurance
If you determine that your policy does cover some of the losses you’re experiencing due to COVID-19, you may need up-to-date expense and reimbursement information on hand to file the claim.
If you’re eligible for any small business relief or other funding, it may be helpful to have updated expense information, as well. Even if you don’t specifically need employee expense reports, expense report software can make it easier to access other financial information you need to apply for financial relief programs.
Improve Future Projections
It’s understandably difficult to make any definitive plans right now. Large numbers of businesses are closed by state order, and need to wait to hear when they will be permitted to open their doors again. Some businesses are making rapid, dramatic changes to the way they operate to serve customers and comply with health guidelines and government orders.
Lagging behind on expense reports increases the risk of complications later. Sometimes it doesn’t seem too bad to have employees who forget to submit expense reports and cover business expenses themselves! But missing out on full expense information makes it harder to predict future expenses accurately. It may be harder to spot potentially fraudulent activity if employees do start submitting reports, because you have less data to compare. An online, simple system can help improve compliance from employees submitting reimbursable expenses.
We’re all looking for ways to make work as simple as possible in a challenging time. Using a unified, online solution can lighten the load of expense management for your team.