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5 misconceptions that can have a negative impact on your expense management strategy

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It is OK to be skeptical about what an expense management tool can and cannot improve in your organization, this is what helps you choose the best solution out there in order to help you achieve the goals you included in your expense management strategy.

However, there are several misconceptions among CFOs, travel managers, HR or compliance specialists regarding expense management software. We want to break down 5 of them and help you avoid falling into the same traps other companies do.

Misconception #1: "Automating expense management is not a priority for our company"

With expense management costs representing the second biggest cost for your company after payroll, do you still believe that expense management automation is not a priority for your company? Implementing an effective expense management software, one that fits your company's needs, is one of the best decisions your company can make to obtain the highest ROI from activities such as business travel.

Misconception #2: "Our current expense management system works just fine - we have already invested a lot of time and energy to get here"

Choosing and implementing an expense management solution is a time and energy consuming process. You may think you have the right tool, but did you ever stop to ask yourself and other stakeholders whether your current solution really fits your needs? Or whether it actually provides your organization with the features you agreed to pay for?

The results should be visible and measurable, and the benefits should help you see measurable ROI when it comes to expense management. Always keep an eye on what’s new in the market, on how your solution adapts to your ever-changing needs, and change it if you are not satisfied with the promised value.

Misconception #3: "It isn't the expense management solution that keeps expenses under control, it's the corporate expense policy"

While a corporate expense policy is essential for increased compliance, it is not enough to obtain results. Employees might just not read the policy or find it hard to understand the rules you set. To make sure that your corporate expense policy is enforced, you could integrate it with an efficient expense management solution that makes compliance easier and automates the processes that influence corporate policy compliance.

Misconception #4: "My employees comply with our company's policy, I know I can trust them"

When cutting employee spend is a priority for your company, trusting your employees is not enough. If you don't normally pay attention to expense reports or go looking for fraud, duplicates or errors, and you never warn your employees about the mistakes they are making, trust will not help you decrease expenses. Intentionally or not, employees spend money when you do not have control over the approval process and when expense reporting is done manually. This is why companies switch to an automated expense management solution and start seeing the benefits shortly after implementation.  

Misconception #5: "Switching to a new expense management solution is too expensive and time consuming for our company"

Nobody said switching to a new expense management solution was easy. But using an outdated system that does not help you track, analyze and control corporate expenses can affect you on the long term if you keep postponing the implementation of a new solution. This should be a solution that can scale to your company's evolution, that everybody is happy to use, and that helps managers make informed decisions to keep corporate expenses under control and employees satisfied.

Using the right software and automating processes which are currently a waste of time and energy will help you cross off important goals in your strategy: increased visibility, compliance with corporate policy, better control over taxes, less errors in your receipt submissions and expense reports, etc. Finding the right expense management software will help you and your team - one that allows you to focus more on the tasks that have a direct impact on your company's goals.

 

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