Ten reasons why you should digitize your expense management process

Ten reasons why you should digitize your expense management process

The role of expense management within organizations is transforming and the key to that is automation. Tedious and costly manual processes are being replaced by automated processes that help organizations become more efficient. Klippa is continuously driving innovation that helps solve expense management challenges. By providing customers with end-to-end automation, cost control, powerful data-driven insights and best-in-class support, we help organizations with their digital transformation. And we want to do the same for you. 

Digitizing may seem daunting, but every day you don't, will cost you money

Naturally, digitizing processes is a big step: you change the way your colleagues work and everyone involved needs to get used to a new tool. Especially in the current COVID-19 situation, implementing such a big change might seem daunting. But we’d like to explain why this fear isn’t grounded and name ten very strong reasons why you should digitize your expense management process. Once read, we are convinced that you would rather digitize today than tomorrow. The arguments being:

  1. No more paper forms that need physical handing in: since a big part of the world is in Corona quarantine at the moment, working remotely and safely is more important than ever. So why not get rid of paperwork all together? It will benefit your business post-Corona too. Many paper forms tend to get lost or forgotten on someone’s desk. Digitizing the information stream means having all data available at any time. 
  2. Fewer errors: Nearly half of employees say they have lost receipts, for instance, according to a survey by an American businesses expense-management firm. And 36 percent admit to forgetting what their expenses were made for. Reduce mistakes by having employees simply take a picture of their receipt: the software will automatically extract the information and send it to a user friendly portal.
  3. Google Maps integration: Travel expenses might be the most chaotic to process. Employees typically calculate the costs they made with Google Maps and communicate them to the relevant department, while simultaneously needing to remember all of their trips and saving the gas receipts. Trips are sometimes forgotten and receipts lost, which means these expenses are not allowed to be claimed. With Klippa, manual post-travel calculations are a thing of the past, because our app is integrated with Google Maps.
  4. Maximize VAT returns: If employers do reimburse costs without a receipt, this means they cannot deduct VAT. This is an unnecessary financial loss. 
  5. More efficient authorization with digital workflows: This is especially interesting  for organizations with more than one location or that have complicated authorization flows. The more people in the approval process, the more likely it is that human errors occur. According to the Spend Journal, each manual expense claim takes up around 20 minutes. And according to the Global Business Travel Association, 19% of all expense reports contain errors. Since these errors take time to correct as well, each claim ends up costing around 58$/€52: a hefty sum for a task as mundane and unavoidable as claiming an expense.   
  6. Compliance-proof approval process with audit trails: Each claim that is submitted through our software follows the same path, which is very commendable from a compliance perspective. The business rules determine whether certain expenses are approved or rejected automatically. For instance, when a claim is made without a receipt scan, or when an expense exceeds a limit, the software can decline the claim automatically and the manager will receive a notification. 
  7. Automatic fraud detection of duplicates: Prevent errors and fraud with automatic detection of identical invoices. Of course, as an employer you trust your employees, but fraud does happen and mistakes even more so. Take a lunch for instance, each individual present should only claim expenses they made and only ones that were job-related. But if a receipt is long and contains a lot of variables, mistakes are easily made. Our software detects duplicates instantly and sends a notification to the appointed manager. 
  8. Time and cost-effective accounting process: All receipts and invoices are processed with text recognition software (OCR). Since manual work is automated, our customers see a time and cost reduction of up to 70%.
  9. Insightful dashboards with expense behavior: Klippa is 100% cloud-based. You can use the platform any place, at any time, and you are able to approve or reject expenses with just a few simple clicks. An integration with your accounting systems enables the finance department to efficiently account for the approved expenses. In a user friendly dashboard, you get actionable insights into the status of expenses and the average processing time per employee, the costs of departments, cost centers, projects and periods.
  10. No more dull and repetitive expense tasks for you and your colleagues: apparently manual expense management is so despised that 18 percent of employees would agree to take out the company trash if it meant they would never have to file an expense report again, according to the survey mentioned in point 2. Ten percent would even agree to scrub the toilets. So start making your colleagues happy by relieving them of doing manual data entry.

While it will take a little effort on your company’s part to move away from manual expense management, the benefits of digitizing have much more impact than the drawback of change management.

If you wish to learn more about how you could benefit from automating your expense management, please shoot us a message via chat or email: support@klippa.com. Would you like to schedule a demo with one of our product specialists? Then take a look at the options below.

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