Although the concern over employee theft and the embezzlement of fund is a concern for any business, it also needs to be recognized that unnecessary losses can also be the result of current business practices. While a CFO in a larger corporation oversees the entirety of the budget, administrative and accounting department are also tasked with handling expenses.
This results in a vast amount of both paperwork and attention to detail, which expands exponentially with the number of employees, vendors, and even clients who are involved with transactions. Just as banking exchanges can take several days to post, expense reports do not always show the real time accuracy of the movement of funds. With expense automation software and protocols, better accountability in spending can be achieved.
Honest Mistakes And Lost Profits
One of the challenges that larger companies face with expenses is that receipts and paperwork do need to be manually verified and entered into the accounting system. Mistakes such as transposition of numbers, double billing, or missed receipts are an actuality in these scenarios. With expense automation, however, the workflow is not only streamlined, but these mistakes can be avoided.
When employees or vendors are able to submit online expenses in real time, accounting teams are also able to see the actual transactions as they appear. This enhances accuracy, but is also improves the efficiency of the department by reducing data entry time and actual paperwork filing. Expense automation also generates regular reports on a routine schedule that can be managed for greater or lesser control. The result is a system that both corrects possible mistakes, and also allows for the immediate perusal of current and pending expenditures. This simplifies the process of managing the budget, for the CFO and the entire accounting department.