A lot of different things need to be in place in order for businesses to thrive in the modern world. It’s a highly competitive professional climate, and giving a company all of the advantages possible is important for ensuring that it moves towards a bright future. While things like a solid business strategy, good leadership, effective management, and hiring the best employees are all vital for business success, there are other tools to consider as well. Setting up different tools that can help a business succeed will also be instrumental, and a perfect example of this is expense automation.
First, it’s worth understanding what expense automation is at its most basic. This refers to the process of using software to streamline and automate the various aspects of travel expenses. For example, think of what managing expenses manually involves:
- Employees incur a travel expense while on business.
- They then fill out the appropriate form and submit the expense for review, along with receipts.
- These expenses are then either approved or denied manually by another employee. In some cases, reimbursement occurs while in others the employee tracks their expenses that they have placed on a company credit account.
- Verified and approved reports are then kept for years, filed for recordkeeping purposes.
This involves a lot of steps, and when things like external credit accounts or foreign taxes are involved it can become even more complex. But expense automation streamlines everything. Instead of having to manually enter expenses, track paperwork, turn in receipts, undergo approval, and more, everything is automated wherever possible.
In a situation using automation, expense are entered into a computer system that automatically reviews them and verifies them. Additional steps for automation may also occur – things like:
- Filing or noting credit account expenses
- Approval or denial of expense
- Digital filing of all documents and receipts
- Automatic currency conversions
- Automatic accounting for different types of taxes
- Compliance verification
- And more
In short, good software will automate the entire process and allow businesses to manage their expenses almost automatically. This offers plenty of major benefits to companies, including:
- Increased productivity
- Improved workflow
- Reduced fraud
- Increased accuracy
- Improved compliance
- And more
And, with automation, it’s possible to review expenses quickly and get a clear picture of what is working for a company and what isn’t, making it simpler to adjust strategies and develop new policies to help reduce costs and increase profits. Expense automation is something that could impact a business positively in several key ways, and as such it’s well worth considering for any company.