Businesses around the world are not untouched by the expense claim frauds. When employees repeatedly submit fraudulent expense claims or false reimbursement claims, then the company gets into the trouble of bankruptcy.
Along with this, the businesses have to pay hefty processing fees for managing physical expense receipts, as it takes months to verify, process, and approve the claims by different departments. The tedious process of filing physical expense receipts and storing them may lead to unwanted delays in the reimbursement cycle, which is accompanied by lots of human errors in the expense reporting system. This makes the manual processing of the reimbursement expenses a challenging and time-consuming task.
Eventually, efficient tracking, recording, and reporting accurate business expenses can help companies secure their finances and keep the business owners away from the trouble of court cases. This is possible only through the top expense software designed for managing the reimbursement expenses in a seamless and simplified manner.
What Counts As Reimbursable Expenses?
Reimbursable expenses accounts for those payables by company to its employees for which the company-related expenses are incurred by the employees. Usually, the employees incur travel and other office supplies expenses from their personal pocket or credit card. The employees then submit the expense receipts to the company, for which they get paid back in their next salary credit. Most importantly, the company is bound to reimburse only those expenses which get qualified within the reimbursement policy, called reimbursable expenses.
The reimbursable expenses can include business travel trips, advertising costs, maintenance and repair fees of company property, office supplies, transportation costs, etc. Whereas, the non-reimbursable expenses may include personal credit card fee, travel upgrades, violation fines, entertainment, personal-use gadgets, etc.
How To Use Expense Software For Recording Reimbursing Expenses
You need to follow a particular process even when it comes to using an expense software for recording the reimbursing expenses. Though, the process is simple and provides full security and transparency for both the employees and the company.
Here are the simple steps to process reimbursable expenses:
Step 1: Scan the documents
The expense software provides an easy way of scanning your expense documents, which is possible through a mobile application or a scanner. You can also take a photo from your personal mobile device and upload the same to the expense software portal. When the credit cards are used, the account statement of the same period can be uploaded to the system.
Step 2: Organize the documents
You can easily organize and arrange the documents as original copies, or you can store them as digital files in the software cloud space.
Step 3: Track Your Claims
Once your expense receipts get verified with the company reimbursement policy, you can easily track your application in the system. The digital process allows you complete transparency while tracking your application, providing early claim settlement as the delaying trouble is removed from the process completely.
How Expense Software Manages Reimbursable Expenses?
The process of managing reimbursable expenses takes a lot of effort and accuracy by the processing team. With the digital system of expense software it gets easy to prevent fraudulent claims as the system automatically rejects non-compliant expense claims. Here are some tips for effectively handling the expense reimbursement through expense software.
Define Business-friendly Expense Policy
The employees of your company should always be updated with what type of expense can be claimed by them. Doing it with the manual expense management system is not possible, as you may miss informing some employees, or any issue may occur. The digital expense receipts can easily allow for real-time reporting of policy updates to every employee, as the software itself provides easy information for the same.
Centralized Reimbursing Expenses
A standard procedure can be created for processing reimbursable expenses. The expense claims template allows for synchronizing documents by the accounting department. The expense software provides a centralized platform which streamlines every expense reporting process in an easy manner.
Track Your Expenses
With the expense software, you can easily escape from fraudulent expense claims which are sneaked in by even higher management employees. The automatic digital verification feature helps in accurate verification of expense claims, and you can easily track your expenses through the intuitive dashboard.
How Expense Automation Safeguards Your Business
You can easily safeguard your reimbursing expenses process with the expense software for systematic finances against fraudulent claims. The process will lead to seamless expense claims which will allow for easy reimbursement claims, with error-free reports and high employee satisfaction.
You can also use corporate cards for employee expenses, which can be easily controlled and monitored by the expense software.
Reimbursing expenses has become seamlessly integrated with the expense software technology. It improves employee compliance, prepares easy expense reports, and helps in removing fraud claims from the system. Eventually, it helps businesses keep track of their financial performance and growth.