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4 benefits of online expense management

By 27/05/2020November 25th, 2021Employee Benefits, Expense Management

In the UK, many employees will incur expenses concerning their job. Whether it’s an overnight stay in a hotel to visit a customer or to claim mileage for a trip to a trade show; your employees will likely seek to be reimbursed for these work-related costs.

Historically, many companies relied on paper-based forms and physical receipts or invoices in order to reclaim any expenditure. Not only was this prone to error and fraudulent claims, but tiresome and time-consuming. For this reason, it is hard to believe that some companies continue to manage expenses this way.

Online expense management software can help to streamline how you process and reimburse expenses, not to mention improving your expense reporting.

Below, you’ll find four of the most significant benefits of online expenses.

It’s easier for your employees to claim expenses

For seasoned expense claimants, filing receipts for costs incurred at work may seem like second nature. But, for those employees that don’t claim expenses very often, remembering to get a full VAT receipt for a transaction and keeping hold of it is a challenge unto itself.

Online expense management software can help employees record and claim their expenses with ease. A quick snap of a receipt on a smartphone and an electronic copy of a receipt can be uploaded and logged efficiently, along with the full details of the claim. Not only does this means employees can do their expenses while they’re on the move or away from the office but online expenses allow them to focus on their day job rather than spending a morning manually filling out paper claims and hunting for receipts!

Automate the approval process

One of the most significant benefits of online expense management is the automation of the entire approval process. This means your employees will have complete visibility of the status of their claim, and their approver will be able to approve, reject or push back on claims in a few clicks. Your employees will be able to see the date a claim was approved and the amount due to be paid without needed to contact their line manager or HR for this information.

Automated notifications can be sent, which are triggered whenever a change is made to a claim, when it’s approved or declined and if you need further information or clarification. This means that approvers will save valuable time and effort, and they won’t have to contact each individual claimant to notify them of the status of their claim.

Safeguard your company from errors in claims

As with many online solutions, expense management software can minimise any mistakes that happen due to human error. Errors in expense claims or exaggerated or falsified costs will be vastly reduced with online expense. Most good providers of expense software offer an easy-to-use submission process, clear claim procedure and automated notifications. To boot, you can set upper limits on expenses and get notified whenever costs breach this limit or are out of company policy.

Paper-based expense claims rely heavily on a human incorrectly verify the spend, manually approve it and pass it on to finance in order to process it. Clearly, this is very prone to errors and could lead to incorrect amounts being reimbursed to an employee.

Online expense management software means that these manual tasks are replaced with a fast and efficient automated process.

It makes expense reporting easier

With all your employees’ expenses submitted and tracked online, reporting on claims by department, location, team and by an individual employee becomes a simple task, rather than a tedious chore. Custom reports can be created in a matter of a few clicks that visualise all expense and mileage claims.

What’s more, most good online expense management software allows you to reports that track the value of claims by category such as hotels, travel, subsistence, entertainment, stationary and much more. It also means you can monitor spend with specific vendors to identify if you’d benefit from a corporate account with them to access discounts or special officer.