Author : Claudia McGowan.
Published : Thu, Sep 13 2018 :2 PM.
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You can integrate electronic forms and receipts into a convenient online workflow that allows employees to fill in expense reports, attach electronic receipts, and then submit them online so that the proper approving authorities are automatically notified that their input is needed. When approving authorities OK an expense report, they can then submit it to accounts payable, who can be automatically notified and begin the reimbursement process. If there’s a problem with an expense report, the employee can be alerted that more information is needed.
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Paper expense report forms can become outdated quickly. Per diem rates and mileage rates change from year to year, and may be different for different locations. With electronic expense reporting, changing these parameters is simple, because you change them once and don’t have to worry about whether someone is using an outdated form. If the calculation used to determine reimbursement changes, it can be changed once in the workflow and immediately apply to everyone. You can be confident that each employee is using the latest expense reporting tool at all times.
Paper records, while great for backup, often prove difficult to manage come tax time, so ditch the pen and paper as soon as possible. If you still receive paper receipts for expenses, use a mobile app or scanner to copy receipts and records into the cloud and store them away immediately. Also, stop paying with cash for business expenses. Credit cards are a much more efficient way to make payments and spend less time tracking them down later.
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On the other end of the spectrum, overly complicated expense reports can lead to resentment from employees, who may be tempted to exaggerate expenses to make up for the hassle of filling out the expense report in the first place. In general, asking for price and date information plus receipts is reasonable for companies that don’t use a flat per diem rate. Here are some ways you can accelerate the expense reporting process.
If you have employees that generate expenses for your company (travel, client lunches, event attendance, and so on), it is important to have good control over their expenses, too. Start first by instituting a credit card usage policy for your company to ensure that they understand the rules of it (i.e. budget limits and who’s responsible for paying outside of them).