5 Ways Digital Expense Management Benefits Small Business
When it comes to expense reimbursement, you might only think of traveling expenses to attend trade shows or conferences – things that your small business might not do. But there are other expenses that your employees could be paying for out of pocket – like when you send someone to the office supply store to pick up ink for the printer.
No matter what business expenses your employees incur, you need a way to track their reimbursement requests and pay them back. Manually filing and processing expenses can often be time-consuming and frustrating. You have to sift through piles of spreadsheets and receipts, while your team waits for you to review and approve the request.
You can streamline the process and make it easier for everyone involved by utilizing a digital expense management system. Keep reading to learn five ways expense software can help your small business.
1. Eliminates human error
Paper expense reports leave a lot of room for mistakes. Someone has to review each expense, match it with the corresponding receipt, credit it to the appropriate person, and remember to pay the person.
With a digital expense management system, the receipt is attached to the correct expense and the employee who submitted it. If you choose a program that’s combined with payroll, approved requests will automatically be included in the worker’s paycheck. You won’t have to worry about forgetting to reimburse them, paying them the wrong amount, or assigning the expense to the wrong person.
Read also: 5 Reasons Your Small Business Needs Payroll Software
2. Enforces your policies
It’s normal to require your team to submit a receipt with every reimbursement request. You can set up your expense management software to prevent people from sending requests without one. If your worker tries to submit a reimbursement without including a receipt, they will be notified immediately to correct their mistake quickly. You won’t lose time going to the employee and asking them to resubmit.
Your system will also notify your staff the moment their reimbursement is approved or denied. This gives your workers a clear response in a timely fashion, and they can come to you with any questions. If a request is denied, you can explain what to do next time to ensure they’re following the rules.
Read also: How to Write an Effective Expense Policy
3. Increases flexibility
If you choose an expense management system that offers a mobile app, your employees can submit their reimbursements in real-time.
They can use the camera on their phone to capture the receipt, so they won’t have to sort through records when they return to the office. If you reimburse your team for mileage, an app lets them submit their request the moment they arrive at their destination. They won’t have to worry about writing down how many miles they traveled or calculating it later.
A mobile expense management system will also give you more flexibility to do your job. You can review and approve requests from anywhere – even if you’re out of the office for a few days.
As your company grows, you’ll also be able to assign permissions to your managers or supervisors to review their subordinates’ reimbursements and approve or deny them, further freeing up your time.
4. Reduces delays
Does your staff ever seem frustrated with how long it takes you to pay them back? When you have to sort through paperwork, you sometimes put off reviewing expense reimbursements until you have more time.
But with digital expense management software, you eliminate the gathering and sorting. Instead, you can quickly review requests and approve them with the simple click of a button. You’ll take care of your responsibilities, and your employees will be paid back, all in a timely fashion.
5. Improves organization
With a digital expense management system, everything is stored online. You’ll no longer have stacks of expense reports and piles of crumpled, faded receipts that are difficult to read. At the end of the year, you can print a single report showing all the expenses you reimbursed your staff for, including what category each belonged to, so you can more easily see where you’re spending money.
Some platforms will even let your employees record expenses without requesting reimbursement. They’ll also be able to print a report showing what expenses they personally incurred to help them with their tax returns.
Simplify with Workful
You can save time and simplify expense management with Workful’s all-in-one payroll and time tracking solution. Your team members can
- upload copies of their receipts
- keep track of personal expenses
- submit expense requests from anywhere through Workful’s website or app
You’ll be able to
- review and approve requests from any device with an internet connection
- automatically include reimbursements in your team’s paychecks
- delegate expense approvals to another member of your staff
Workful will help you reduce reimbursement turnaround time and make it easier than ever to manage expense and mileage reports. Request a demo today to find out if Workful is right for your small business.