Continuous cost reduction is one of the most important ways you can maintain your competitive edge in the world of international business. Whether you are based in Canada or simply have a presence there, cost reduction helps you succeed in competitive markets.
Cost reduction is often something that businesses seek by looking outward to trained executive consultants. However, this obviously mitigates the benefits that you can enjoy, since it means you will have to reduce your savings by however much the consultant happens to charge.
Internal methods of cost reduction, such as auditing and correcting expense reports, can be much more efficient and involve a far lower initial investment.
Implementing an automated solution for expense reports can help you to save money in multiple ways:
1) Reduce The Costs Of Travel Expenses
Travel expenses can be extremely difficult to quantify and archive even when everyone involved is striving to be fully accurate. With different tax schemes, currency regimes, and other issues in play, you will save money and reduce mistakes with expense reporting software.
2) Reduce The Growth Of Regulatory Overhead
In many industries throughout Canada and the U.S., regulatory matters represent the fastest growing category of business overhead. Many medium-sized businesses have reported a multi-million dollar annual increase in regulatory spending, which can be reduced through automation.
3) Prevent Major Fines, Fees, And Other Entanglements
Of course, expense reports are only a portion of the overall picture, which is about government relations. With the right software, you can ensure that your expense reports are fully audited before any request by the government, defending your activities to the utmost.
Process Improvement Is Critical To Cost Savings
When looking at cost savings, it is truly imperative to go through your business processes “step by step” and look for obvious inefficiencies. For example, are you receiving handwritten papers that your employees then have to scan into a database?
Paperless processes are virtually always more efficient than any paper-based process, especially as business becomes more geographically diffuse. Starting with this in mind will help you to discover other areas of cost savings that you can benefit from.
Updating processes usually goes more smoothly and easily when you can implement a single, robust, purpose-developed solution for each aspect of your enterprise. This way, stakeholders need only be familiar with the tools that benefit them.
Expensing software can be one of your new solutions, and is among the easiest enterprise-wide implementations that you could choose for your cost reduction strategies.