Most businesses find that their operational costs grow significantly when they start to do business around the world. It can be challenging enough to maintain a low expense profile within Canada, but as you expand, expenses can increase exponentially.
Expense report automation can help you understand where the money goes and target different areas to reduce costs. One of the expense categories that can grow unchecked without appropriate tools is travel expenses.
Travel expenses are inevitable when you need to send teams or executives out to cultivate your international business prospects. However, they are a double-edged sword when it comes to creating compliance difficulties for your business.
What Are The Main Problems When It Comes To A Travel Expense Report?
There are two issues that can cost you a great deal of money when it comes to your expensing:
1) Business Travelers Don’t Have Time For The Nuances Of Reporting
When an executive is working abroad, he or she is spending time immersed in a business culture that forces a high level of alertness. It is important to understand, engage with, and influence the counterparts from another culture in the most effective way that you possibly can.
That being the case, there is very little time to worry about the nuances of what the VAT was for a particular business meal, or even whether a specific room service item can be considered a good expense account item or not. Other concerns need to take priority.
That being the case, you shouldn’t expect executives to over think a travel expense report.
2) Honest Mistakes Happen Even When Great Care Is Taken
Even if your traveling executive works as hard as possible to maintain good records, it does not mean he or she will be capable of doing it. On a long trip that involves several different world jurisdictions, you can expect certain problems and issues to creep in of their own accord.
Unfortunately, this kind of mistake is more difficult to notice and correct — and it can also have much greater consequences. If you have an uncorrected error in a travel expense report, you could easily find that you are facing millions in compliance costs.
Automation Is The Permanent Solution To Travel Issues
Automate your expense issues with the latest software and you will rapidly find both of these issues fade away. That means your shareholders and your travelers can both remain completely confident in your organisation.