As we all know, employee expense reporting and reimbursement can cause a huge headache for already overburdened accounting and HR departments and for your hard-working employees.
With all this hassle, it is no wonder businesses are looking into ways to reduce time and cost spent in the process, by either using prepaid cards or by adopting a digital expense solution.
Employee prepaid cards
Employee prepaid cards seem like a great way to track the spending patterns of your employees and reap the benefits that come with them. The obvious benefits of prepaid cards are:
- Employees do not always prefer using their own money for purchases on behalf of the company;
- Companies have better control of the spending patterns of employees;
- Employee expense cards come with some exciting enterprise perks;
- Companies can usually strike some subsidy on the interest rates from banks on these cards;
- Implementation is easy;
- Corporate cards do not hold an individual liable for the card payments.
However, the use of prepaid cards also brings unnecessary burdens and risks to your business, such as:
1. Inconvenience in tracking for employees and management; The do’s and don’ts of the company policy can be confusing and make tracking expenses difficult for employees, accountants and finance departments.
2. Not your best defense against fraud; Fraud is one of the most obvious and common reasons companies avoid issuing the prepaid card. Just in Belgium, one in five companies have experienced fraud in the past year. On average companies lose 150.000 euro per incident.
3. Not the end of paperwork; Expense cards only solve a part of the manual workflow. Auditors require hard copies of receipts, regardless of payments using the card for tax write-offs. Employees still need to file expense reports and submit receipts for proof. This includes a lot of paperwork, which most companies assume can be avoided.
4. Interest rates and fees for cards; Corporate cards also come with the threat of bad credit and debt, which will negatively affect the credit score of your company and may cause issues.
5. Lost or stolen cards; As with a standard debit card, there is always the risk that an employee loses his card with all the inconvenience that comes along with it.
6. Limits adversely affect employees; At times, additional or unplanned costs will add up for employees while on business travel where your employees might run out of money. This would leave them stuck on the road and add extra accounting work while processing their expense claim requests.
7. No monthly statements; Prepaid cards do not generate monthly statements for your company, so you will have no cross reference in the future. This makes it very easy for employees to commit expense report fraud
Why digital expenses are more beneficial than employee prepaid cards
Even though business owners may still have concerns about the implementation of a digital expense solution, these worries are short-sighted. Especially now, in 2019, when digital transformation is the future for and key to your business success. The implementation of a solid digital expense solution, such as Rydoo’s, offers your organization the following benefits óver employee prepaid cards:
- Better control of your employees’ spending patterns;
- Easy and organization-wide implementation;
- Tracking convenience for employees and management;
- Your organization’s best defense against fraud;
- Compliance maintenance support for your HR and Accounting Departments;
- No more paperwork;
- A bulletproof travel and expense reimbursement policy;
- Employee awareness of money spent;
- Time & cost savings and better use of talent;
- Streamlined, accurate processing, including monthly statements;
- Easy, on-the-go access and real-time monitoring;
- One, integrated solution;
One of Rydoo’s many happy customers: Deloitte
Deloitte Belgium is one of Rydoo’s satisfied software users for automated and fast employee expense processing. Rydoo has made it possible for Deloitte to reduce their time spent processing and analyzing data, in addition to gaining real-time insights into their employees’ expenses. 3,000+ Deloitte employees use Rydoo daily, so that they can simply process their expenses via an app on their smartphones.
This gives them the ability to scan a picture of their receipt and upload it directly into the Deloitte system. The app analyses the data and extracts the required data for fields including purchase date, amount, supplier’s name and currency etc. After scanning and uploading, the user can also add additional information. “For us, it is very important to constantly innovate our processes and tools, to reduce administration and to increase efficiency. Thanks to Rydoo we know faster how much we spent on a certain project or client. Also, we get information about a large part of the expenses during the same month, so we can immediately start to control and process that part. This significantly reduces the amount of work that has to be done at the end of each month,” says Cindy Peeters, Finance Director of Deloitte Belgium.