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Key to Success: Automated Expense Management

By: BCD Marketplace Partner – Mobilexpense

Business travel is an essential aspect of many organizations, and an effective travel policy is crucial to properly govern travel activities. A travel policy sets out guidelines and rules for employees to follow when traveling for work-related purposes. It covers everything from booking travel arrangements to managing expenses and ensures that employees comply with legal, ethical, and organizational standards.

However, manually managing expenses can sabotage even the most robust travel policy. It is a tedious and error-prone process that can lead to inaccurate reports and delayed reimbursements. Not to mention the risk of fraud.

The Risks of Manual Expense Management

Manually managing expenses is risky and time-consuming. It involves collecting receipts (when they are not lost), inputting data into spreadsheets, and manually reviewing and approving expense reports. This process is rife with mistakes, and these can cause delays in reimbursement as well as inaccurate reporting.

Besides, manual expense management leaves a company open to the possibility of fraud. Employees may intentionally (or not) falsify expenses. This results in non-compliance with the travel policy and can potentially cost the organization a significant amount of money.

To avoid these risks, organizations should consider automated expense management solutions that streamline the expense reporting process. Automated expense management systems offer several advantages over manual processes, including improved accuracy, faster reimbursements, and better compliance tracking.

Prioritizing Cost Management

Cost management is an essential aspect of an effective travel policy. Organizations should set clear guidelines on allowable expenses, travel booking procedures, and cost-saving measures. By doing so, employees can make informed and cost-effective decisions when traveling for work.

Organizations should further encourage employees to book travel arrangements in advance and choose reasonably-priced accommodation. Employees can also be expected to use public transportation instead of taxis and to share rides with colleagues. These small steps can add up to significant cost savings for the organization.

In addition, automated expense management solutions can help organizations optimize their travel budgets. By automating expense reporting, organizations can gain visibility into their travel expenses and identify areas where cost savings can be made.

Ensuring Compliance

Compliance is another critical aspect of an effective travel policy. Organizations must ensure that their travel policy is in line with legal, ethical, and organizational standards. The travel policy should be communicated clearly to employees, and regular audits should be conducted to ensure compliance.

The travel policy should include guidelines on allowable expenses and travel booking procedures (for more on this, read our article on creating an effective travel and expense policy). Employees should be made aware of these guidelines and encouraged to comply with them. Compliance tracking tools can help organizations monitor employee compliance and identify areas where further education or training may be required.

Moreover, automated expense management solutions can help enhance the traveler experience. Automated expense management systems offer features such as mobile and real time expense reporting with an app. These make it easier for travelers to manage their expenses while on the road.

Automated expense management solutions can play a significant role in implementing an effective travel policy. By automating the expense reporting process, organizations reduce the risk of errors and fraud, improve accuracy and compliance tracking, and provide a better experience for travelers. With the right automated expense management system, organizations can streamline their travel policy and create a culture of compliance and cost-consciousness.

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