Many finance professionals will agree; one of the most laborious and time consuming tasks they are faced with is managing staff expenses, through some form of manual process
A manual expense management process will typically involve the following tasks for a finance team;
- Matching up the receipts to claims
- Checking for any reclaimable VAT
- Ensuring management authorisation for each claim
- Ensuring policy compliance
- Returning unauthorised claims
- Credit card reconciliations
- Producing payment files
- Paying the claims
This process must be repeated for every single claim which is submitted, which in itself is time-consuming, but what if there are extra variables to consider? What if extra levels of authorisation are required for claims in excess of a staff members limit? If a claim is returned to the claimant, and they resubmit, the whole process must be repeated for accuracy. What about the implications of a company altering its expenses policy? It would not be uncommon for a single expense claim to occupy the time of a member of your finance team for several hours.
Expense management processes, like those described above are all too common in businesses and while this may be adequate for a small business with a couple of employees claiming each month, what happens when the business grows? This kind of process will quickly have a huge impact on the efficiency of a finance team.
How can automated expense management help?
Automating the process of expense claiming brings many benefits, but when asking our customers what the key benefits of a systems like this are, the top two answers are always:
- The ROI - saving money by reducing inaccuracy in expense claiming and maximising tax claims
- The time saved by everyone - the claimant, the authorising manager, the finance team and even the auditor
How does automated expenses achieve this?
- The most obvious is the eradication of paper - no more printed expense claim forms or receipt collections
- Policy enforcement is built into the system - set limits mean your employees can be prevented from submitting expenses above their allowed limit in the first instance, or required to provide a valid reason for overspending.
- VAT is automatically calculated
- P11D reports are available, saving time at the end of the tax year
- Authorisation is done at the click of a button, and any denials are dealt with quickly.
- Payment files are created and can be exported to your chosen finance system.
It is easy to see how MEO-Business could reduce your expense processing time from hours to minutes. Click here to trial our software free of charge, and see what other benefits can be had from automating expense management.