6 Benefits of Using Online Expense Reports
What are the main benefits your business hopes to achieve using online expense reports? There’s a difference in needs between enterprise-level corporations and small-to-medium businesses. While the corporations have an accountancy department capable of selecting an appropriate expense reporting solution, the SME’s have a difficult time choosing the right solution.
An Aberdeen study shows SME’s choose solutions based on the following criteria:
- Direct integration with accounting software: can the online expense report be exported to the accounting software used, without the need for any manual data entry?
- Employee adoption: is the software easy to use? Are mobile apps available? Does the solution cut down on the need for employee data entry?
- Approval and customization: does the software come with an approval flow to make sure only approved expenses can be reported? Can these approval flows be adjusted based on rules set by the approver?
- Fraud detection and prevention: How does the software detect and prevent fraud, such as duplicate expenses?
Using expense software can help you meet all these criteria, but there are additional benefits for using a proper, more enhanced Expense Management tool, such as Rydoo.
1.Never lose receipts again
Everybody loses receipts from time to time, but this means you cannot report this expense. Mobile apps can prevent this from happening. A picture of a receipt is enough to store them safely online. Some apps, like ours, go even further and extract all relevant data so data entry belongs to the past, making employees’ lives easier.
2. Expense reports or exporting in just a few clicks
Expense reporting is one the most hated tasks because it takes a lot of time, and often the end result is full of errors. Expense management software will automate this process.
Because all expenses are collected in one single place, you can easily generate all kinds of reports (category, project, employee), and expenses can be exported to accounting or ERP software.
3. Data driven decisions based on real time data
When expenses are submitted when they occur instead of once a month, and thanks to additional data that is added (such as project, category, payment method), you have a better and real time view on company and employee spending.
You can actually see where the money is going and manage expenses better. The online expense reports give you a real-time overview of what’s happening.
4. Currency conversion using real-time exchange rates
When employees are travelling around the world they probably have receipts in several different currencies. A proper expense management tool will convert the foreign currency using real time exchange rates.
5. Approval of expenses on expense level
Approval of expenses can block the entire process of reporting expenses because it’s done at expense report level, which means when an expense isn’t approved, the employee has to redo the entire expense report.
Approval of expenses allows the approvers to approve or decline expenses from the moment they are submitted, making sure only approved expenses can be reported without the hassle of doing a report over again a number of times.
6. Receipt storage
Tax laws say receipts and invoices have to be stored for a certain amount of time. This means boxes and boxes full of paper. But we live in a digital age, and when your expense software digitizes your receipts and invoices, they should store them for the minimum legal period of 7 (UK, USA) to 10 (Italy) years.
As you can see, an expense management solution has many great benefits, which are not limited to the six reasons above. Ultimately, an expense management solution helps you and your employee’s time, and this means you’re saving money as well.