Regardless of whether a company is just starting out or has a well established operating budget, there is always the demand to utilize best practices in allocating these resources. While the CFO and accounting departments are overseeing these concerns, there are many issues that do get overlooked. Internal spending is one of the largest contributors to corporate and organizational loss, according to the Auditor General, but certain tools and practices aid in monitoring and halting needless spending. Web based expense reporting is just one piece of technology that financial managers have at their disposal.
Real Time Transactions
There is no one single place where internal losses can happen, although the ability to properly monitor this spending does play a large part in preventing losses. While a lack of vigilance on the part of accounting teams can be cited as a contributing cause, these departments generally go through hundreds of transactions and employee expenses every day. For some companies, especially start ups, the accounting department can also consist of just one staff member. This makes it difficult for even the most vigilant accounting teams to stay on top of every single transaction.
Web based expense reporting and expense automation greatly facilitates the ability for financial managers and accounting teams to be able to keep up with spending and balancing the budget. In some ways, these programs are like the ability to clone accounting staff, which means that better proper oversight for budgets is achieved. Further, it addresses one of the major causes within this category of spending that does contribute to significant budget loss.
Accounting For Lag Time
Any type of reimbursement payment, whether for travel expenses or supplies, becomes a prime place where outright fraudulent or just questionable spending within a company happens. Part of the reason for this is that even with access to corporate accounts and credit cards, approval on costs tends to happen after the spending has taken place. As accounting teams go over receipts and payments at a later point in time, the verity of the charges is not always scrutinized completely. Web based expense reporting allow CFOs and fiscal managers to see spending alerts in real time.
This makes for a faster means of catching questionable expenses, and can also put a halt on funds being withdrawn until the issue is resolved with staff members. In this manner, Web based expense reporting puts greater control in the hands of the individuals who should be catching these budget issues, and also gives them the tools they need to do their jobs properly.