The notion of business spending came into sharp focus through 2020, as the coronavirus ripped through the UK and forced many firms to temporarily close their doors.
Of course, some budgets were more likely to be cut than others during this time, with expenses and team perks among this number. In fact, some 50% of businesses moved to slash this type of spending during Covid-19, while many also looked to tighten up their expenses reporting procedure.
Make no mistake; there are a number of expanse management challenges facing businesses. We’ll explore these below; while asking how you can overcome them.
Challenge #1 - Lost Receipts
This is perhaps the biggest issue with expense management, as you’re often relying on individual employees to provide receipts and justify repayments.
However, human error and carelessness often means that such receipts become lost over time, creating a scenario where expenses either go unpaid or are settled without a viable record or reporting process.
In the first instance, employees may become frustrated and disillusioned with the process. In the second scenario, your company finances can become relatively chaotic, while creating an opportunity for people to take advantage of this and claim larger amounts of cash than they are due.
Challenge #2 - An Inefficient Process
On a similar note, companies also have an inefficient process for collating receipts and repaying expenses in a timely manner.
Record keeping is certainly a significant issue here, as is the speed and efficiency with which receipts are processed and paid out to claimants.
Make no mistake; pitfalls in the expenses process can cause significant delays and repayment errors. Once again, they can also see mistakes made in relation to expenses repayment, or establish loopholes that allow employees to manipulate the system in their favour.
Challenge #3 - The Lack of Security and Control
On a final note, we also need to consider that expenses processes can often be undermined by a fundamental lack of security and control.
For example, receipts and employees’ data may be exposed to colleagues when handling receipts, which poses a huge risk in terms of fraud and identity theft.
This also raises the issue of a lack of control within the process, which means that occasionally expense claims may be lost and overlooked along with the supporting data.
What’s the Solution?
To overcome these challenges, you need to consider digitising your processes, ideally by using an innovative and scalable platform that’s inherently secure and tailored to suit the needs of your business and employees.
An open banking platform comprises all of these elements, creating an efficient and intuitive platform that can manage expenses claims quickly and conveniently as part of a wider payment system.
This also has benefits for customers, who can commit to sharing their data proactively and opening themselves up to personalized offers that provide genuine value.
