Any company needs a number of different things in order to stay in the black and continue progressing into the future. While most of your energy will likely go towards things like marketing, hiring, employee management, and building brand identity, another factor that needs to be considered is compliance.
Falling on the wrong side of various regulations could lead to serious issues, and one area that can often cause this is in expense management. That’s why utilizing online expensing software is so important.
Before you understand why online expensing software is integral to helping you stay compliant, it’s worth looking more closely at just what compliance means for your company. No business operates without regulations, and there are likely to be numerous guidelines you must abide by when it comes to travel expenses. Since these expenses are often taxed differently than other company expenses, a single error could lead to big trouble.
For instance, say that an employee files an expense claim for a $100 hotel stay and you approve it. However, what if it’s discovered later that this hotel stay was for their personal use and not for business? It’s a small example, but one that helps you see the many faces noncompliance could have.
And noncompliance can cause serious problems for any business including fines, fees, and even temporary closure of the business. In some instances it’s even led to jail time or to a company going out of business completely.
So how can online expensing software help you stay compliant? There are several ways.
- For starters, it helps reduce errors in approval. It’s very common for dates to get mixed up or for expenses that aren’t related to a business trip to be approved due to the fact that the process is time consuming and labor intensive. With a program automating the process, you avoid that issue entirely.
- It also eliminates errors in math. A single miscalculation during the reporting process could lead to a mistake on taxes that could lead to an audit or to fines. With software handling the process, that’s much less likely to happen.
- Good online expensing software also stops fraud from being so prevalent. Most major cases of noncompliance related fines and penalties are related to fraud, and when a company uses software it is much harder for employees to cheat the system.
- Good programs also handle things like currency conversions automatically. This means that there are no conversion mistakes that could trigger noncompliance.
In short, the automation process makes it far easier for you to keep your company on the right side of the law and moving towards a brighter future. A good software solution is well worth investing in.