A third of companies take at least eight days to validate and reimburse expenses: how to reduce the time of management processes?
According to the Expense Management Trends report published by Emburse Captio, most expense management costs relate to the time spent creating, approving, and reimbursing expense reports.
BY RRHHDigital, 02:45 – 23 July 2021
52% of companies continue to rely on manual expense management processes, despite leading to high processing costs, lack of control, insufficient visibility into spend, poor implementation and non-compliance with travel policies, as well as long reimbursement periods for employees. This is shown by the Expense Management Trends Report 2021, published by Emburse Captio, which is based on 515 interviews with finance professionals from all sectors.
According to the report, 78% of companies surveyed have written travel and entertainment policies. However, more than a third of organizations use a combination of manual processes to review expense reports. Mismanagement of the expense process that takes at least eight days for a third of businesses to approve and reimburse an expense report. Leaving compliance to employees or manually checking expense reports is an inconsistent approach that leaves companies vulnerable to overspending or fraudulent spending.
The study indicates that 33% of companies don’t know the cost of processing a single expense report, so they don’t know how much they could improve in this process.
Additionally, the report identifies several key trends that are driving the use of expense management automation solutions by small, medium, and large businesses in the short to medium term. The sudden switch to telework has highlighted the shortcomings of manual systems. In this sense, 85% of organizations that plan to switch to cloud-based solutions say they will do so within a year of responding to the survey.
Simplifying the expense management process for employees and supervisors is the number one reason respondents are turning to this system. Agility and efficiency have become points of increased attention over the years. All organizations are taking comprehensive steps to better manage cash flow and try to do so in a way that provides flexibility for an uncertain future. Other reasons also include: improving employee compliance rates with travel policies, providing a solution that can be managed from anywhere or improving travel expense reporting and analysis and of displacement.
This report was produced by Emburse, the largest independent provider of enterprise expense management software.
Download the report here to view the full report
SEND YOUR COMMENT