If not managed effectively, the process of managing an expense report can be very costly.
If a CFO seeks to reduce processing costs, here are five questions to ask:
1. “What is our expense management process?”
Begin by outlining your process, walking through each step, every possibility, every person, and every requirement. One simple misstep can balloon into a problem for many reports processed each month.
2. “How many people are involved?”
There’s the employee who submits the report; how many reviewers are then assigned to review the report? Do they have the training and resources they need?
3. “Does every expense report have the same process?”
Standardization is great, but sometimes it makes sense to have expenses vary by level. Every company is different and you won’t know until you analyze it for yourself.
4. “Are any of our processes manual?”
If your finance people are spending more time chasing down spreadsheets, writing and emailing policy validations, writing physical checks for mailing — then the process is inefficient.
5. “Does our expense reimbursement process coincide with payroll?”
An automated expense management process should be fully integrated and seamless.
To learn more about how to automate your expense management processes, schedule a free demo.