The benefits of an automated and digitized expense management process
Tips / Best Practices

The benefits of an automated and digitized expense management process

According to a study made by PayStream Advisors, companies that have chosen to fully automate their expense management process are reducing by over 70% the cost of processing expense reports, from € 22 to less than € 6. The advantages of a solution like SAP Concur are multiples:

 

Centralization of processes

A digital solution will automate all tasks, centralize data, dematerialize and integrate all documents for good management, but also avoid errors in data entry. On a day-to-day basis, this represents a significant time saving for the department in charge of expense reports or for employees.

 

Dematerialization of HR documents

Whether it’s managing expenses related to travel or processing an expense report at the restaurant, everything is done digitally. Thus, by booking his flight or his hotel directly in the management platform it arrives directly in the management system.

 

“An expense management solution reduces expense processing costs by 70%”

 

More visibility on expenses

Thanks to a system of classification and analysis of data, the financial services get a better visibility of the expenses (hotels, transportation, restaurant, etc.) and how they are divided by supplier. It’s also a good way to negotiate better rates with the suppliers and optimize the purchases in the medium term.

 

VAT recovery

Digitalization also contributes to a better recovery of VAT. Now, the companies in charge of this problem directly connect their application to an expense management platform. In a few clicks, they review all expenses and extract VAT depending on the type of expenses and the place of the expense (in France or internationally).

 

Automate control processes

It is through automatic data analysis that the organization ensures recurring checkpoints and reduces the risk of non-compliance with local policy and local regulations. These controls provide the ability to check both unintentional and voluntary errors. In the case of mileage, for example, employees often tend to increase their expenses, rounding up to ten kilometers. And according to a study conducted by SAP Concur, more than half of the managers in charge of approving expense reports (56%) say they ask for proof rarely, if ever, during the validation process. Only 13% often check the accuracy of statements and 30% from time to time.

 

Thus, for the service in charge of the processing of expense reports, the time saving is also considerable from the moment the processes are integrated into an automated solution. By doing so, the company offers a better employee experience while improving the productivity of its financial teams.

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5 Reasons to Implement a Travel and Expense Management Solution

ebook: 5 Reasons to Implement a Travel and Expense Management solution

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