Five Benefits of Using an Expense Claim Management System
An expense claim is a collection of receipts from personal spending that needs to be reimbursed by the business. Filling and tracking the expenses can be quite a hassle. In most countries, the government will also require companies to keep the receipts over a period of years for compliance. As such, it is beneficial for companies to use an expense claim management system for tracking and managing expense claims.
1. Save Time
It is time consuming to manually collect receipts and file expense claim requests. Besides that, for example for a business trip, employees have to keep track of all the paperwork and submit their claim on time. Even when receipts and claims are turned in promptly, it takes time to review the requests, correct any errors, and finally approve the request. It is even more hassle to search back through previous requests for reference.
With an automated system, it is easier for employee to view previous requests and submit expenses claim requests. It is also much simpler and quicker for managers to review and approve the requests through the system.
2. Reduce Processing Costs
Finance departments spend many hours on simple redundant work like data entry and processing paper requests. Using an expense claim system greatly reduces the need for data entry. Requests can be processed faster with data integration with accounts and payroll system. Requests and reports are stored in the system thus references can be made easier and faster.
3. Better Decision Making
With online request, information can be gathered easily to generate a expenses report. It can provide a clear overview for company expenses budgeting. Besides that, managers have employees’ requests at their fingertips to make decisions on expense request approval.
4. Increases Compliance
A digital solution allows you to build in restrictions so every claim aligns with company policy. It will also create a complete and reliable audit trail should your business need to answer any queries from authorities.
5. Ensures Claim of Taxes Companies are Entitled To
The automated solution will identify expenses for which GST needs to be paid or reclaimed and the required information is captured upfront. Some expense report solutions will ensure compliance with local legislation requirements by capturing the requisite details and automatically calculate any associated GST amounts.
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