In a world where technology apps and automated processes are king, it would appear logical for expenses to be managed automatically, right? Yet, 50% of businesses still manage their expenses manually according to a recent survey. Among those businesses, 70% of small businesses also perform manual expense management. Ouch.
A lot of companies who perform manual expense management may tell you that they do it because they feel it is more accurate than computers. You may even be one of them. Unfortunately, that is not the case.
Not only are manually managed expenses prone to errors, they are labor intensive and just plain cumbersome to work with. If this sounds like you and you're not sure about making the choice for expense management software yet, we'll give you an apples to apples comparison to familiarize yourself with the automated process and reap its benefits.
EASIER TO NEGOTIATE VOLUME DISCOUNTS
The costs put into expense management software are often justified by the information it records and provides. For example, negotiating packaged telecom discounts with your service provider becomes much easier with a reliable track record as your resource.
Knowing how much your company spends on average each year gives you a valid leverage point to secure good discounts that will accumulate your savings over time. Service vendors like repeat customers, so your odds for discounts are even stronger with a solid source to pull from.
ADMINISTRATIVE TASKS ARE CHEAPER AND FASTER
If your company is still trying to sort through mountains of receipts and invoices and attach them to spreadsheets for accounting, you are definitely missing out on the benefits of automated expense management! Automated processes and approvals for your expenses cost significantly less, are faster, and give you far fewer headaches to deal with.
Many types of software now have built-in mobile and laptop compatibility these days. Take a photo of a receipt with your smartphone, and it gets recorded into the software and stored in one place. Did you know that a single expense report costs $27 when manually filed but only $7 through expense software? You'll get reimbursed a lot quicker too. And that alone is good reason to switch to automated expense management!
HUMAN ERRORS ARE REDUCED
Traditional expense management practices require workers to input and re-input data that is double checked before finalization. But expense management software utilizes optical character recognition (OCR) technology to read, extract, and interpret data in a consistent manner based on the rules it's given.
Several rules can be applied to look for certain matching qualities. The software also inputs the data for the user. Because it follows the same process every time, there is no need to worry about human errors. Expense processing becomes faster since there is no need to double check the software for verification. It either gets processed, or it doesn't. Simple, right? And that gives you one less thing to worry about.
QUICKLY CATCH FRAUD
If adapting to software technologies seems foreign to you, think of it this way. Technology doesn't conduct expense fraud, people do. Expense management software with set controls will perform the same way each time because of its programming. Manually inputted data, on the other hand, is prone to mistakes or intentional fraud that slips through the cracks.
Because it's easier to read data that's easily organized by software, you can catch potential fraud opportunities or prevent it from happening to begin with by establishing key controls. Credit card data is stored securely and handled accurately every time. No more guessing where that 6 month old invoice got misplaced at. With expense management software, everything is stored in one place and easy to find.
Feel free to double check the data if you need to - it's highly unlikely you'll find any errors that are generated from the system itself. It's much easier to read. Any discrepancies you find will likely come from its users. If the discrepancies are from a vendor or an internal source, you can easily trace it back to its beginning to rectify the problem.
CATCHING UP WITH THE TIMES
Sometimes it's essential for us to step out of our comfort zone in order to make the next step forward. It is certainly worth it in the case of manual vs. automated expense management. In short, you'll save money, time, and a lot of hassle with fewer steps to micromanage in your company's workflow. As the current year ends and the new year begins, now is a great time to consider acquiring expense management software for your company's needs.
Why stay with the 50% and lag behind when you can get ahead of the pack? Our skilled staff at Valicom can help answer your questions about TEM software and get you set up with Clearview, our recommended software of choice. Powerful, effective, and simple to use, you'll love it's user-friendly interface to review your expenses! The best part? You don't even have to be a techie to use it. Simply give us a call should any issues or questions arise down the road, and we'll help you troubleshoot the tricky stuff.
Contact our team today to help you get your expenses back in control
and in your hands where they belong.