Expense reports may feel like the bane of traveling employees, and an added workload to the finance departments that must review and process these reports, but they are absolutely necessary for the wellbeing of a company. Without a stringent expense report system in place it’s possible to abuse a system intended to compensate employees for their financial activity while traveling on behalf of an organisation, as was seen in 2014, when none other than two Canadian members of senate were charged with fraud, claiming improper living and travel expenses.
For management this is a nightmare, not just of finance, but of public relations. And it’s one of the reasons why expense report software can so valuable to the integrity of a company.
Standards & Compliance
By incorporating expense report software, management incorporates accountability right into the system. Expenditures on the company credit card can be automatically logged, complete with key information such as time of purchase and the name of the goods/service provider. This automated system also enforces a standard method of accounting for expenses into the entire company, and, if that system is easy, can even promote accuracy, as employees find it less troublesome to file even the smaller expenses they might have ignored if pressed for time.
Expense report software also has the advantage of storing all information online, meaning that data can be accessed viewed by anyone with the proper access from any device. This makes it possible for management to get a total summary of expense activities, and, for the purposes of financial policy, see exactly where the money is being spent in travel, as well as how and why. All of this gives decision makers a much more complete—and secure—way to manage the expenses of traveling employees, while the automated solutions make it easier for the data to be added, and the online storage of information allows the data to be viewed and used by those who need it most, whether it is the financial department approving the reports the themselves, or the upper management looking at the overall state of travel expenses and how they affect the company.