The nature of business is increasingly becoming more complicated and unpredictable. With some employees working in the office and others working remotely, controlling critical processes becomes more difficult. Expense tracking for billing and employee reimbursement is one of those critical processes. Management must approve expense reports submitted by employees for reimbursement. They need to track how much the organization is spending on travel and expense. And for tax purposes, they need to document everything.
Many companies are still holding onto a manual process that includes piles of receipts, paper reports, and spreadsheets. Often, this leads to purchases that aren’t allowed, employee frustration, and delays in reimbursement, which can result in:
- Duplicate reports
- Fraudulent reports
- Delayed billing
- Tax penalties
And other issues! That’s why larger businesses have automated expense tracking and reimbursement — to eliminate most of these challenges. Let’s take a look at some of the benefits of switching to a workforce management solution that includes an expense tracking and reimbursement feature:
Streamline Processes
Are your employees making paper copies and stapling receipts? Are they sending physical reports to managers? Do managers ever have to send those reports back to employees for readjustment? With an expense management software feature, this process becomes so much easier. Instead, employees can upload receipt photos and enter their expenses right from their computers or phones. Once a manager approves the report, the reimbursement amount will automatically be sent to payroll.
Increase Accuracy and Efficiency
With software that allows you to link mileage and expenses with jobs and customers, you’ll be able to run reports that show you profitability. You can also receive real-time reporting so you can make adjustments on the fly to ensure there are no surprises come payout time.
Track Other Costs As Well
By keeping all the other expenses that you owe in the same place, you’ll know exactly how much you’ll have to pay later on — no surprises! Tracking bonuses, commissions, negative amount entries, and other supplemental costs linked to jobs and customers will make it easier to reimburse employees.
Eliminate Errors and Delays
When employees are reimbursed on time, they’re less frustrated and more satisfied with their employer. Manually filling out expense reports is a headache for everyone involved because it usually results in manual data entry errors. That makes employees look bad, causes managers to spend more time fixing problems, and losses organizations money. Furthermore, employees and managers don’t need to worry about trusting each other. When a photo of a receipt or odometer is attached to an expense, there is no questioning the exact amount.
Stay in Compliance
By categorizing expenses, organizations can stay in compliance with federal, state, and local agencies. Office, travel, and mileage can be categorized appropriately. Whereas categories such as golf and entertainment can be categorized as to not be included as tax-deductible. By creating reports that separate these categories, you won’t have to worry about getting audited.
Are you interested in streamlining your expense processes, increasing accuracy and efficiency, tracking all your costs, eliminating errors and delays, and staying compliant for tax purposes? InfiniTime now has a new expense tracking module so you can track mileage and expenses right from a computer or smart device. Your employees will be able to upload receipts and categorize them so you can get an accurate and complete picture of your expenses.
If you’d like to learn more, reach out to us today!