In a world where automation is everywhere, many businesses are still opting for manual expense claims management. But how much is this method harming your business? Find out how manual expense claims management can be wasting time, efforts and resources within your business.
1. The average expense claim takes 20 minutes to process
Despite companies using expense reports since forever, the process is still misunderstood and costs unnecessary time for everyone involved. A typical claim will take 5 minutes for the employee to file, 5 minutes for their manager to review and approve and a further 10 minutes for a member of the finance team to review, reimburse and reconcile. If we think about the dozens of claims that are processed each month, this is taking up a lot of unnecessary company time.
2. 1 in 5 expense reports are filed incorrectly
According to the Global Business Travel Association, 1 in 5 expense reports contain errors. Because of these errors, it takes an additional 18 minutes to correct the report. If we think about the 20 minutes it takes to process the claim for it to then take a further 18 minutes to correct, this then turns into a 38 minute process.
3. Two thirds of employees have not familiarised themselves with their company’s expense policy
This statistic is quite shocking when we consider just how many employees are spending company money without really knowing what’s allowed and what isn’t. Not only does this cause confusion amongst your team but it can also be wasting company time reviewing expense reports that are invalid claims. Alternatively, this can also lead to your staff not claiming back expenses they are entitled to.
4. 48% of employees still use their own money to cover business costs without reimbursement
With 48% of employees using their own salary to cover business costs, this could be hurting the relationships within your business. With time, staff will start to feel resentment for having to spend their hard-earned wages on business costs which can even lead to higher turnover.
5. Employees often lose their receipts
Manual expense reporting can mean that your employees have to hold onto those tiny receipts for a longer period of time, especially when working further afield. Not only can receipts go missing but they can also get damaged. Once this happens, it can be a very difficult process which leads to more time and resources.
If like many businesses, you are feeling the strain of manual expense reporting, MyExpenseZone are here and will be happy to help. You can contact us or book your FREE demo with a friendly member of the team.