The most successful companies are those that understand just how important every single aspect of their business really is. It’s easy to overlook some of the more cumbersome aspects of the job, but the reality is that if you want your company to thrive you have to give every bit of it the attention it deserves. One area that is often relegated to the sidelines is that of expense management. It’s very easy to overlook this part of your company or to simply give it a brief once-over and be done, but if you have employees who travel regularly it’s vital that you pay attention to the way you handle their expense reports.
Failure to do so could lead to big issues, and the costs of poor expense management can be higher than most people realize. If you’re not convinced, consider some of the following outcomes that can come from not giving it proper attention.
- Inaccurate expense management can lead to huge costs for your business, in strictly financial terms. When employees make claims that aren’t completely supported by your policy or when simple human errors occur in the claims, you could end up reimbursing more than you actually should. These costs can add up.
- It’s also important to note that not all employees are honest. A recent study found that companies end up losing about 5% of their total revenue to dishonest employee actions. A portion of that lies in expense report fraud, and if you’re not careful you could fall victim to this as well.
- Additionally, poor expense management could cause you to fall into an area of non-compliance. This in turn could lead to heavy fines, fees, and investigations. More than one company has literally gone out of business due to non-compliance, so it’s vital that you take the steps to stay on the right side of all laws and regulations.
- Finally, understand that when you give your expense report system the proper attention you will be able to identify changes that may need to occur within it. When you do, you can develop new strategies and polices that can improve your bottom line. Using data reports from your expense management system is the key to driving forward this increase in capabilities, but many business leaders ignore it completely.
So just how do you go about maximizing your accuracy with your expense reports? The best bet is to invest in solid expense report software. It can help you get the best results and stay legal no matter how complex your expenses may be. It’s well worth investing in, and is something you won’t regret having on your side.