When tasks related to expense report auditing are managed manually, it is no wonder that employees hate it. It is one of the most important and difficult processes in your organization, and skipping it just because it takes time and energy could end up being one of your biggest mistakes. Keep in mind the fact that after payroll, travel expenses are the second largest expenses in your company.
Find below the top 5 reasons why employees believe expense report auditing to be one of the most unpleasant activities and learn how to put an end to their aversion.
What can you say about employee compliance with your corporate expense policy? What about the expense policy itself? Is it too strict or does it leave room for interpretation? Do your employees know the rules? Are there any rules? Confused employees will continue to make mistakes and your expenses will continue to grow. Auditors will waste their time if you do not take measures to increase compliance in your organization.
In order to improve expense report auditing, you should ensure that your corporate expense policy is clear for all your employees and that it is equally enforced within your company. To define an efficient expense policy, you should talk to representatives from all your departments and learn people’s preferences and pain points.
Handling paper receipts manually means frustration, human errors, increased costs and incomplete records. Travel activities generate just part of your monthly expenses. When your employees must go through multiple expense reports every 30 days and do all the work manually, your company is exposed to risk. Some companies choose to sample randomly in order to identify the expense reports they should audit, but this is just a false solution to a problem that will persist due to managing expenses manually.
What you should do in order to improve report auditing is change they way employees submit expenses in the first place. This means you should look for a mobile expense management app that allows employees to submit expenses on the go. This app should also help you automate expense report entry. The next step you will be able to take is automatically analyze the receipts that are being uploaded by your employees.
When expenses are managed manually, employees and auditors might wait until the last minute to submit and audit reports. Your employees will spend a lot of time gathering and submitting receipts from business trips, lunches and taxi rides, while your auditors will find themselves buried in a huge pile of expenses that are waiting to be verified.
To eliminate the risks that come with manually managing and auditing expense reports, find an expense management software that allows you to automate processes. Your employees will be able to submit expenses on the go, you will be able to approve the reimbursement requests and reimburse employees faster. You will no longer have to wait until the end of the month to fight with a gigantic pile of reports or to reimburse employees.
When expense reports are managed manually, auditors usually have to communicate with employees who submitted expense reports needing correction. This takes a lot of time and can be very ineffective. Your auditor must reach out to the employee who submitted the report and his or her manager in order to fix the problem. What does your auditor do if the employee doesn't answer?
Automating the entire expense management process will help you completely eliminate of this type of situation. An automated software will help you detect suspicious activity and flag the reimbursements requests that are not compliant with the corporate expense policy. Any suspicious behaviour can be corrected in real time by your auditor and you will be able to improve communication between auditors, employees and managers.
When all your expenses are managed manually, it is difficult to estimate the time and energy you and your employees will need in order to check all the tasks related to expense reports. How will you be able to scale your auditing process if you do not know how your business is growing?
Automation is the answer when you are looking for more visibility, control and predictability. With these three benefits, you will be able to scale the expense report auditing process and your auditors will focus more on solutions than on finding errors, missing documents and so on.
Doing an expense report audit becomes a lot easier and more relevant for your company when you are managing corporate expenses manually. Learn more about the steps you can take to find the right travel & expense management software and how you can take control of employee spend by improving corporate expense management.