In traditional expense report systems, there are often complications resulting in a multitude of things. Firstly, these activities take time, since most expenses need to be verified before proceeding. Secondly, full expense reports are only made after a trip is concluded, and if there are missing receipts or other questionable elements of the report, it makes it that much harder to follow up and make sure everything is correct.
One of the most important steps in good expense report systems is what happens after the report is submitted. At this stage, your accounting staff must go over the expense claims, and make judgements about whether all the activity is routine. If so, they will file away an approval for the report, or spot errors and attempts at fraud, leading to an investigation of these claims. With automated expense report software, both routine and investigative activities can be conducted faster.
Expense report software creates a system where employees can make each individual entry in an expense report the moment it occurs. Even cash purchases can be quickly documented with a photo of the receipt that is attached to the report when it is made on a phone or tablet. Once this report is made, it is automatically uploaded to a cloud-based storage system online, where you and your staff can investigate and verify each claim.
In the case of routine expenses, the staff present at the home office can monitor and approve each transaction as it happens, which means that no further expense report approval is required when a employee returns. With errors or fraud, this also means that the anomalous activity can be flagged by the software itself if the expenditure doesn’t comply with the policy you’ve established. In this way, your staff can both approve and investigate expense reports at a much faster rate. It frees them up to spend more time doing the important financial work for the company rather than tracking down missing receipts and following up on miscellaneous expenses. Therefore, the ability to green-light transactions at a fast rate is a reason to consider automated expense report software for your business.