Expense management breakdown: 5 ways employee expense reports are hurting your company
We all know that expense reports are dreadful for employees and it takes them a lot of time and precision to hoard on tickets and receipts to be able to file expense reports.
However, aside from how much employees hate having to go through a long process to either prove their spending or ask and confirm for a budget, the long process also hurts the company in the long-run.
Let's break it down:
1. It's very Inefficient for Businesses; Financially as well as Time Consumption
It takes time for each employee to go through a lot of steps, and not to mention, a lot of hesitation during making company related purchases. The time it takes to actually file a proper budget approval request or an expense report to get reimbursement for a company related purchase, takes away time from the employees to be doing actual work.
It also hurts the business financially since the employees cost of time directly translates into them being paid for hours that were wasted on filing an expense report or a budget approval request. Time that can so easily be saved, hours on end, with a simple solution of what Haslle has to offer.
2. Creating a Bad Environment for Employees: Transparency
We all know how much Employee Relationship Management (ERM) is important to managing a business. Haslle brings you much closer to that by simply making a solution so that employees know exactly how much budget they are assigned and to which category. So instead of having to spend out of their own pockets and later after hours spent filing and filling forms related to their expense reports, be rejected a reimbursement simply because the budget assigned was not transparent.
Transparency will not only help employees avoid hurdles and mis-understandings around the subject of assigned budgets, but will also help managers have real-time data analysis of how much an employee has spent and how much is left in each category of their budget.
3. Incorrect Filing and Confusion around Expense Policies
If you are a company still using the traditional papers and expense reports, as a manager you will know that most employees don't really read the expense policies. That takes a turn very quickly and turns into incorrect filing and considering the amount of time already spent by the employee and the financial department to approve of the reports and it being sent back, it doubles the time of that report being filed and now twice as much time will be spent from the hours your paying your employees just to fill out a form for something that could be made so simple.
4. Visibility and Honesty
Haslle introduces credit cards for the company to distribute among employees and teams. This will help companies avoid expense reports or budget requests that are exaggerated or unnecessary.
A study from GPA (Global Payroll Association) found that around 30 percent of employees lie on the expense reports and fill them out erroneously. This will become so much more visible to the managers if they simplified the process that has created an atmosphere of lack of respect for company expense policies and will create a transparent process to avoid over-compensations.
5. Financial Burden on Employees due to Unclaimed Expenses
The financial burden of expense reports don't only fall on managers. More often than we think, the financial burden is on the employees in the case of them losing receipts or not being able to provide enough proof for a company-related expense.
On the other hand. another frequent burden is when the cost they had to pay out of their salary, was not substantial enough for them to want to go through the timely process of filing an expense report.
To look more closely to the figures, a study was done in the United Kingdom by Barclaycard which showed the average value of unclaimed expenses summed to 123£ per person. This ultimately leaves to dissatisfied employees, who are overly burdened by the unfair procedures of expense management whom will suffer from lack of motivation.
Let us introduce you to Haslle and create a seamless & efficient company expense management together.