One of the big issues with the expense report system of any company is how fragmentary and tedious it may be to almost everyone involved. Employees that need to file reports and accounting or financial staff that need to process reports, and even management that needs to deal with falsified reports all have real issues with weaknesses in a typical expense report system. There are simply too many “holes” that can be exploited or cause inefficiency in the otherwise tight ship that is a company’s financial system.
This is why one of the goals of any company—namely efficiency—is also a big motivator for the expense report system in use. If everything else can be made easier, faster and more accurate, why can’t expense reports? Finally, in recent years, there has been an elegant solution that solves all these problems. It’s using expense report software in tandem with a corporate credit card.
Why This Works
Modern systems like ExpensePoint software are capable of linking directly with a company credit card to automatically log and report all transactions. This is a huge increase in efficiency in a few ways. The first, and most important, is that, as long as an employee uses the credit card, there is no need to actually reimburse the employee at a later date. All transactions occurred on the credit card, meaning that the employee didn’t have to spend any of his or her own personal revenue while on the business trip.
This alone is already a huge boost to efficiency since it means that employees no longer have to worry about keeping track of all purchases, preserving receipts and then filling out a report later that a member of the finance department has to process as well. Significant time and cost savings occur just from this alone.
The other big advantage is that because all purchases occur on the credit card, and are automatically noted, logged and filed by the expense report software itself, this means that because the report is automatically filed, it is easy to refer and, perhaps, most important of all, is accurate. Provided that only the credit card is used, all purchases the employee made are on record and can be tracked, analyzed and approved of. A credit card transaction cannot be forged or modified in the same way a receipt can. Because of that, it strongly discourages the potentially practice of unethically making purchases for private or personal use, and then attempting to later get reimbursement for it. The credit card transaction, complete with details on who the vendor was, displays all the necessary information to verify the legitimacy of a transaction.
This combination of easy, automated expense filing with accuracy and security makes expense report software working with credit cards an incredibly efficient solution to the problem of slow, tedious and potentially false expense reports. Honest employees no longer get bogged down in the minute details of an accurate expense report, while the unethical are denied the use of the most successful exploit methods.