The expense claim frauds have affected many businesses. Many employees frequently submit false reimbursement claims or expense claims, which may push the company into bankruptcy mode.
This gets in addition where the businesses pay heft processing fees to manage physical expense documents, which takes a huge amount of time for verification, approval, and reimbursing the expense claims. This manual processing of expense consolidation is a time-consuming and challenging task.
In the end, recording, efficiently tracking, and reporting accurately the company expenses can improve companies to secure their accounting data. This has been possible through the expense software which is developed for managing the expense claims in a simplified and seamless manner.
What Is Expense Consolidation?
Expense Consolidation means processing those payables by the company to its employees for which the employees incur the business expenses. Mostly, the employees do incur business travel and office supply expenses through their credit cards or cash. Then the employees submit the receipts for the same to claim the expenses from the company, which gets reimbursed after verification and management approval. The company is supposed to reimburse only those expenses which are verified by the company reimbursement policy, known as reimbursable expenses.
These expenses include advertising costs, business travel trips, maintenance and fixing costs of company assets, transportation costs, office supplies, etc.
How Expense Software Consolidates Expenses?
The expense software provides an easy way to prevent the company from fraudulent expense claims through automation. The software rejects the claims which are non-compliant to the company policy. That’s why here you should follow some tips for effectively handling the expense consolidation process through expense software.
Create Business-and-employee Friendly Expense Policy
Such a policy should always be updated to your employees with the type of expense that can be claimed by them. You cannot do so with the manual expense management process, as it prevents some employees from updating, or some other communication issue may go unnoticed.
Centralized Expense Consolidation
There is a standard procedure for processing the expense claims, which provides synchronizing of expense documents by the department. The expense software works in a centralized platform mode, which allows for streamlining every expense reporting process step.
Once the expense software is in place, you don’t worry about fraudulent expense claims which may sneak in through even higher management employees. Expense automated digital verification feature provides an accurate verification process for expense claims, also allowing you to easily track the expenses through it’s intuitive dashboard.
How To Use Expense Software For Expense Consolidation
There is a particular process to follow which allows your expense software to record the reimbursing expenses and consolidate them in an organized manner.
Here are the steps for expense consolidation:
Step 1: Scanning of documents
You can easily scan your expense document through the expense software, which is done through a scanner or a mobile application. The photo of the expense receipt can be taken from the mobile device or uploaded as a digital receipt from the credit card app to the expense software portal directly. You can also use a credit card account statement for the same period.
Step 2: Organizing of documents
Also the expense software organizes and arranges the expense receipts digitally on a cloud space provided by the software provider, or some storage space online.
Step 3: Track Your Claims
After the expense receipts get verified with the company reimbursement policy, it gets easy to track the application through the system. Then the digital process provides to you transparency while tracking expense application, leading to an early claim settlement.
You must now agree that reimbursing expenses through expense software has become seamlessly integrated and effective. It improves employee satisfaction, allows for easy expense reporting, and removes the fraud claims from the system automatically.