Businesses operate in a global marketplace in 2016. Even if your business has yet to engage in any international transactions, chances are it will sooner rather than later. Regardless of your industry, supply chains and manufacturing are now spread out across the globe, and while mature Western economies provide a large, established market, untapped, emerging markets in other areas of the world represent incredible growth potential.
So chances are, at some point, your employees will have to travel internationally either to secure resources for your business, or to establish your business in a new market. Sometimes to multiple countries on a single trip. Of course, this means incurring business expenses in foreign currencies—something that has been difficult and time consuming to deal with in traditional expense reports.
Dealing with multiple currencies, each with their own set of exchange rates depending on the date of the transaction, in a manual expense report can get extremely complicated and take up an enormous amount of your accounting staff’s resources.
Automated expense report software, can automatically track the information for your accounting staff, freeing them up to focus on budgets and analysis, not tedious information tracking.
If you’re sending an employee out to China to check on some of your manufacturing relationships, it may make sense to send him to India or Thailand, where you plan on selling your product, to establish distribution on the same trip. Unfortunately, this means incurring expenses in U.S. Dollars, Chinese Yuan, Indian Rupees, and Thai Bahts, all in a single trip.
Automated expense report software has the ability to track multiple currencies in the same expense report, making it easy for your employee to record expenses as he incurs them throughout his trip without having to worry about exchange rates.
On the back end, your accounting department can either rely on the software’s automatic exchange rates, or set manual exchange rates in accordance with company policy. Either way, the currency conversions are performed automatically by the software for each of the different currencies so that the accounting staff don’t waste their time.
During international travel, your employees may not always be able to get proper documentation for their expenses in the form of a paper receipt. Automated expense report software allows your employees to take images of their transactions via mobile phone to provide adequate documentation.