Elimination Of Costly Processes Starts With The Humble Expense Report

Elimination Of Costly Processes Starts With The Humble Expense ReportIn Canada and throughout the world, there is one aspect of business that rarely changes: The biggest recurring expense in your company is most probably the cost of personnel.

On the long term, it’s easy to conclude that this is true even if you have major capital projects going on or a large portfolio of corporate investments to cultivate.

Eventually, the capital projects will be complete and generating ROI. The investments are certainly intended to keep pace with the market. The human factor, though, is inescapable

What does your “expense report” for personnel look like? Do you have too many people on staff because of complex or unnecessary processes? It takes a deep, penetrating review to find out where the most costly processes are – but many of them are financial.

It Can Take Seven People To Reconcile And Audit One Travel Expense Report

One of the major challenges in business today is ensuring that you have adequate financial controls to deal with the regulatory landscape. Failing to maintain controls can lead to a wide variety of problems, some of them very serious:

– Major government-enforced fees and fines that can quickly cut into the bottom line.
— Other official entanglements that can erode shareholder confidence and future projections.
— Enhanced auditory burden and regulatory requirements based on the need to remediate issues.
— Poor press and public perception based on a broad public misunderstanding of the issue.
— A backlog of materials, such as travel expense report documents and others, to deal with.

With all this in mind, it has been commonplace for medium-sized and large businesses to increase the number of personnel who have partial responsibility for reviewing financial data.

However, with even the most junior analyst easily commanding $60,000 a year, this is a major burden of overhead – creating a situation where even a simple expense report may be looked at by five people. That can be a cost of $300 or more per report, when all is said and done.

Reducing Costly Processes Starts With Automation

With ExpensePoint, you have the ability to eliminate processes that aren’t contributing to your bottom line. While regulatory compliance will always be a cost center, it can also be a crucible that provides a small, potent group of employees with great industry insight.

Ask yourself: When it comes to expenses, are you throwing good money after bad? Use the right tools and you might be able to simplify your control processes to an extraordinary degree.