Expense management is an integral part of business operations for any company that has travelling employees. But for many businesses, it is an afterthought that isn’t given too much consideration. Employees are given an expense budget or company credit card and left to their own devices.
That’s not a good way to approach things, and there are some very high costs that can come from inadequately handling your expense management. Consider the following:
- Noncompliance – Noncompliance can lead to some serious issues for any business, most notably heavy fines and penalties. These can be so high that it may even cause smaller businesses to go out of business. As a result, it’s vital that you stay compliant. That means paying attention to your expenses.
- Fraud – Fraud costs companies billions every year, and travel expenses are one area that it is easy to overlook – especially if you’re not giving it your attention. It’s important to watch closely to ensure that your team is being honest or you could end up losing a considerable amount of money. With basic data reports and reviews of expenses you should be able to spot fraud – but it’s something you’ll have to put effort into.
- Honest Mistakes – Of course, sometimes mistakes just happen. Honest mistakes can occur easily when you’re managing expenses, and if you aren’t careful about how you oversee and review the process it’s easy for those mistakes to slip past and lead to heavy costs. This is where automation software can really come into play. By streamlining the process you can greatly reduce errors and ensure that your business doesn’t suffer from errors.
- Poor Strategies and Policies – Simply put, there are times when your existing travel strategies and expense management policies just aren’t what they should be. You may need to adjust a particular policy that is being taken advantage of, or take steps to identify business trips that aren’t effective. Regardless of what needs to be done, it’s important to pay attention to how effective your current setup is.
In short, taking a closer look at your expense management efforts is something you can’t afford to ignore. Investing in and mastering good expense software can make a tremendous difference and help you improve your business’ bottom line. Don’t overlook how important this aspect of your business is – it could cost you more than you realize.