Tuesday, September 16, 2014
An Attested and Effective Method of Expense Reporting
Travel and entertainment expenses are a huge expense and are just about the most considerable controllable cost pools at most businesses, second to salaries. While these expenses have always been subject to management programs and computerization, disputes within travel and expense management processes have come under rising scrutiny for many reasons.
The surging cost of business travel makes expense management solutions necessary for the profitableness of a business. As the cost of travel services, including transportation, boarding, and travel agency fees, persist in climbing, and a larger number of employees are traveling for yearly business trips, these expenses are draining capital from businesses. Keeping track of traveling costs has also become even more of a nuisance. Paper-based procedures always maintain their own complications. Companies that continue to use paper or spreadsheets rather than expense reporting software or apps face the depleting and inefficient tedium of logging, approving or denying, and ultimately auditing expense reports.
The practice of fraudulating travel and entertainment expense reports is arguably now commonplace; everyone knows the anecdotes of corporate abuse. A scarcity of just checks and balances and control actions make travel related expenses wide open to employee fraud. Paper and spreadsheet expense reports are especially a cinch to make up. Furthermore this procedure is costly; the everyday cost of manually processing an expense report is over $35; accrued over a few months between various employees, these costs end up becoming thousands of dollars worth of fees. These towering prices restrict the financial gains these trips may else ways yield. Impaired spending visibility and a lack of control over said spending creates delayed and erroneous visibility into travel-related expenses, which should add up to employee compliance with corporate travel practices and any other company practices. Without this information, corporations are unable to accurately consolidate travel and entertainment expenses and are so incapable of more effectively negotiating suppliers.