Effective Expense Management – Five Tips
- Clear Routines (that everyone knows about)
Does every employee know which rules apply when managing their expense claims? A clear written policy is key to an effortless process at all levels. This document should contain information on how to register and audit expense claims, receipt management, and if any additional information should be attached. The policy should also clearly state who is responsible for what and the deadlines for every action.
Last, but not least, make sure to communicate the policy to all co-workers – maybe it should be included in the onboarding process for new hires? By clarifying the routines as much as possible, both managers and admins can avoid unnecessary questions and additional work. - Make the Threshold as Low as Possible
On the bus, by the coffee machine, or in between meetings… How about not having to log in on the work computer every time you want to register an expense claim, but instead using your phone – whenever, and wherever?
One smart way of making your expense management an effortless and pleasant experience for your employees is to work with a user-friendly app. With just a few clicks, you get your receipts and expenses in order. And since postponing boring administrative tasks for later is quite common (especially when there are so many other things we’d rather spend our time doing), the magic trick is to make the threshold super low. This way the job will be done directly – not tomorrow, next week, or until the manager sends an angry reminder. - Let the App Interpret Your Receipts
Find and gather wrinkled receipts, interpret them, fill out all the details correctly, staple them and send them in. Oops, incorrect VAT…or information missing! Well…let’s just start over again. Receipt management can be an overwhelming source of irritation. Luckily, there are smart solutions to minimize this hassle.
Nowadays, many suppliers offer support for digital receipts and receipt interpretation. A really smart thing, especially considering the new Swedish receipt regulations, according to which paper receipts can be discarded as long as they have been transferred to a digital format.
It's just as simple as it sounds. Directly after your purchase, you simply take a photo of your receipt with your phone. The app will interpret the receipt and ensure that the date, amount, and VAT are automatically distributed correctly in the travel expense claim. After a quick check that everything is accurate, save and mark it as completed. The manager will receive a notification and can authorize it with just a button click – finished! - Manage the Credit Card Purchases With a Few Clicks
Manually managing expenses that have been paid with a credit card is usually time-consuming and messy. The more details you put in manually, the greater the risk of miscalculations and mistakes. With a travel expense system that is synced with your credit card supplier, the transactions will automatically appear in the travel expense claim, reducing the risk of manual errors.
Additionally, some solutions eliminate the need to decide which expense codes to use for your transactions. For example, if you buy a parking ticket with your credit card, the system will automatically identify the place of purchase and guarantee that the expense is categorized correctly. It doesn’t get much easier! - Avoid Pestering with Automated Reminders
Tired of post-its and pestering deadlines with receipts and expenses? Another advantage of using a system or app for managing the company’s expenses is the reminder function. At the time of your choice, you will be notified about tasks that require submitting or authorization.In addition, there is usually a possibility for you as a manager to alert co-workers if a registered travel expense claim contains any errors, quickly making them aware of what needs to be corrected. In other words, it is a smart way of making sure that everyone knows what to do and when – before anyone has even thought about sending an (angry) reminder.
Why Digital Expense Management Is a Win-Win for the Entire Company
Many companies are still managing their expense claims through paper forms or spreadsheets – something that will guarantee more hassle than necessary. By going digital from start to finish, there are many advantages to gain for everyone involved. As an employee, you don’t have to look for receipts and manually enter details, but instead, spend your time on more meaningful tasks. Also, the management becomes safer and more secure. The more components of the process that are automated, the lesser the risk of miscalculations, manual mistakes, and lost information – a dream for the payroll and finance department.
Last, but not least, digitalizing and then gathering all information in one place gives the company a better possibility for a comprehensive overview and analysis of expenses.
Are You Ready to Say Goodbye to Paper Forms and Hassle with Receipts?
The win-win situation that will follow digital expense management is obvious. Is your company also ready for the next step? Our web-based travel expense system, Flex HRM Travel & Expense, automatizes and assures quality in the management of expense claims. At the same time, you have complete control of domestic and international flights, mileage expense claims, and trip logs – everything you need, gathered in one single place. Read more about how you can simplify your day with Flex HRM Travel & Expense or contact us and we will tell you more!
