Looking for new ways to cut costs and streamline processes at the same time? One significant area fit for improvement is expense management, particularly travel expenses.
In 2021, the global business travel market was valued at $689.7 billion, and it is projected to expand to $2.1 trillion by 2031. With this growth, companies will face increasing volumes of travel expenses.
Unfortunately, today, more than 57% of businesses use manual methods to manage expenses. Outdated, time-consuming processes can lead to inefficiencies, errors, and increased costs.
Therefore, automating travel expense management is key to handling this growing complexity. Companies should automate expenses to boost efficiency, stay in control, and save money.
In this article, you will learn about automated expense management and why it should matter to your business travel expenses.
What is automated expense management?
Automated expense management uses software to simplify and optimise the handling of employee spending.
This includes tracking expenses, categorising them, processing receipts, ensuring compliance with company policies, and quickly reimbursing employees.
By using advanced technologies like AI and machine learning, an automated expense system can help businesses manage their budgets more effectively and efficiently. Implementing such a system can significantly benefit companies by enhancing financial control and operational efficiency.
The benefits of automated travel expenses
Automating travel and expense management is essential for modern businesses to streamline operations and enhance efficiency. By transitioning to an automated system, companies can significantly improve productivity, gain better visibility and control over spending, ensure fast travel expenses reimbursement, and enhance overall travel planning efficiency.
Here are five key benefits of adopting automated expense management solutions:
1. Increased productivity
Let's face it: manual expense processing is a headache. Employees often collect a pile of receipts, manually create expense reports, and then wait weeks or even months for reimbursement.
This traditional system impacts productivity at every level of an organisation, from travellers to managers and controllers.
Imagine how much more productive your team could be if they weren't bogged down by these tedious tasks.
A modern automated expenses system will streamline this process. Built-in integrations such as currency converters, links to ERP systems, and automated VAT recovery make expense processing a breeze.
Managers can quickly see if an expense complies with company policy, reducing the time spent on approvals. Controllers benefit from automated checks, leaving them to focus only on non-compliant expenses.
2. Better visibility and control over employees' expenses
If you cannot measure your spending, you cannot manage it. This holds particularly true for expense management.
Outdated systems lack the tracking and analytics capabilities of modern solutions, relying on manual calculations and complex spreadsheets. This results in poor visibility and control over company spending.
An automated expenses system provides detailed analytics and reports, making it easy to track and optimise spending. With these tools, you can see which business units or employees have the highest expenses, allowing for better decision-making based on solid data. Furthermore, documents are accessible anywhere, at any time, making the audit process more efficient and less error prone.
So, automate expenses and you'll have full expense control.
3. Fast expense approvals and travel expenses reimbursements
Are your employees tired of waiting for their money? A mobile app for expense management is invaluable for remote employees and managers. It allows for easy submission and approval of travel expenses on the go. With online and mobile approval, managers can approve expenses with a single click, even while on the move.
Fast approvals mean quicker expense reimbursements, significantly boosting employee satisfaction. Employees no longer must wait long periods to see their money back in their accounts. Automate expenses and you will comply with company policies, making the approval process faster and more reliable.
4. Fraud detection and prevention
Worried about fraud? You’re not alone. Fraud is a significant concern for companies, with organisations losing an average of 5% of their revenue to fraud each year, according to the Association of Certified Fraud Examiners. Companies relying on outdated expense technology are more susceptible to undetected fraud, leading to higher losses.
Automated expense management systems come equipped with advanced fraud detection and prevention tools. Automated security measures, spend limits, attendee registration, and OCR (Optical Character Recognition) help identify and prevent fraudulent activities. These features save companies significant amounts of money and reduce the risk of financial loss.
5. Enhanced travel planning efficiently
Think travel planning could be more efficient? You’re right.
Automating travel and expense management not only saves time but also enhances travel planning efficiency. Pre-approval processes ensure employees can take advantage of travel deals without unnecessary delays. Integrated spend reports provide actionable insights, guiding better budgeting and cost control decisions.
Seeing the big picture of travel expenses makes employees more aware and accountable. With clear policies and a solid expense tool, processes get streamlined, and everyone can make smarter decisions based on real data. This means travel planning becomes more efficient and profitable for the whole company.
Conclusion
Investing in automated expense management is a strategic move that can result in significant benefits for your company.
From increased productivity and better visibility to faster approvals and enhanced fraud prevention, the advantages are clear. As global travel increases, now is the perfect time to upgrade your expense management system to ensure your organisation is well-equipped to handle travel expenses efficiently and effectively.
Automating your travel and expense management processes not only maximises returns and minimises costs but also saves time and boosts employee satisfaction. Automate expenses and your company can achieve better financial control, operational efficiency, and overall profitability.
