Longer processing times with your expense setupThe bigger a company grows, the more employee expenses it will have to handle. With each claim being processed by hand, it creates a burgeoning flood of paperwork for finance teams. As times creep up, it creates a dangerous information lag as expenses take weeks or even months to go through the system.
Rising level of losses in expense setupWith more time devoted to processing claims, it means there’s less time to properly monitor and police costs. It creates an environment in which workplace fraud is able to thrive as falsified and exaggerated claims go unchallenged. It can quickly create a workplace culture in which “creative” claims are seen as the norm.
Numbers stop adding upIt’s not just the increased size of a growing company which will expose problems. It’s also the added administrative complexity as new divisions and departments are created. When information is processed manually and stored on spreadsheets, it makes keeping data in sync an increasing headache.
Struggling to cope with complianceAs a system begins to struggle, it becomes increasingly difficult to ensure that expenses comply with external legislations. This is a particular problem when trying to safely navigate the complexities of HM Revenue and Customs (HMRC) rules on tax and VAT.
Staff grumbles and discontent regarding expense setupA surefire sign of a misfiring expense system is a rising level of frustration for employees. It’s the hassle of creating claims, the length of time it takes to be reimbursed and the general toxicity caused by expense fraud and distrust between employers and employees. If these warning signs sound familiar then your business needs to review the way expenses are handled. It’s a chance to take action before emerging issues are allowed to become serious problems that can stifle growth and increase risks. All of these problems are symptomatic of the outdated methods that companies have traditionally used to manage expenses. It’s the reason so many companies are moving over to digital expense management. The systems replace manual processes and paperwork with fast and efficient automated tasks and cloud-based storage of data. It removes the administrative burden from finance professionals – improving processing times by around 25 per cent. It allows information to be handled in real-time with data automatically collated and made instantly available to the finance team. It frees up the time and resources to focus on properly managing expenses, rather than processing them. Webexpenses is an award-winning digital system which provides a smarter way for businesses to manage their expenses. Find out more about how it works here.
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