If you’re a business leader, it’s vital that you do all you can to keep your company moving forwards and earning a profit. Along with the income you bring in, it’s also a must to reduce overall costs and identify where profit loss is occurring dramatically. One area that is often overlooked but that could be creating this situation is in your expense management efforts.
Poor expense management can lead to big problems, and oftentimes business leaders don’t even realize just how much they’re losing – or how. Here are some examples of some of the ways that your employee travel expenses could be costing you extra money.
- Fraudulent Claims – A 2016 study found that 16% of businesses who upgraded to an online expense management program were able to reduce their profit loss by cutting down the case of fraud. Dishonest employees could be turning in claims that are completely made up, and that can cost you big.
- Misleading Buys – This is another side of fraud, but it is actually more common than submitting outright false claims. Miscellaneous travel expenses can include a lot of things, but often there will be invalid purchases mixed in that actually look like they’re legitimate.
- Duplicate Expenses – Another report found that about 10% of business travelers end up with at least one duplicate expense submitted during a trip, and often multiples. It’s usually not their fault – simple errors occur when they submit claims and when your home team approves them.
- Basic Costs – This is probably the most overlooked side of expense management costs. Not only can outdated systems cost you a large upfront investment fee, but paying your team to manually manage the expenses and paying your IT team to monitor and maintain the digital side of things can lead to a big impact on your bottom line. You can use modern online expense management software to solve this problem easily.
Simply put, paying attention to more than just the basic claims you’re receiving can help you adjust your expense management policies and strategies and get a better future for your company. There are more things impacting your profits than you might realize, and it’s vital to take steps to cut those costs whenever you can.