Remote work became the norm for most office workers due to the onset of the pandemic. Suddenly a large number of organizations had to adapt to the shift. Despite initial concerns, it worked well.
Yet this shift has had and continues to have a profound effect on the way we do business. Not only have the costs to which staff is entitled to have changed, but so have the general ways in which they claim costs and provide evidence.
While it is easy to dismiss that lockdowns and travel bans have led to lower costs, many people do not understand what impact these new ways of working have on employees and the payroll, finance, and accounting team.
Unsurprisingly, changes in the way we work have changed the types of expenses that are claimed.
Generally speaking, less personal conversations have reduced claims for hospitality and entertainment. In contrast, many companies have seen an increase in the cost of home office equipment, IT hardware.
In addition to working remotely and adapting to changing employee needs due to pandemics, many companies are also seizing the opportunity to digitize their manual processes.
Many companies have always worked through a simple, manual, and paper-based process. Filling the expenses form, have the manager sign it, transfer it to accounts, and then wait for it to show up in your account.
With digital technology at its peak, automated software can restructure these processes towards efficiency. Consistency and ease of use are vital points that warren the inclusion of an expense management system. You need to ensure everyone has access to existing tools and that expense statements can be verified and signed as done in a manual system.
Teams should establish a focal point where all expenses can be integrated, along with proof to get started. There are several benefits to digitizing the traditional approach. Probably the most important thing is that it is straightforward to save the receipt. Users take pictures and upload them with a claim for their expenses.
This reduces lost receipts, especially at a time when everyone works remotely.
Another benefit is that some expense tracking solutions easily integrate with existing accounting and payroll platforms. Having this feature reduces the amount of manual information transfer information from expense claims to your accounting software. By eliminating manual input, you also reduce the risk of user input errors.
Traceability is another essential component of an effective expense management system, not only for the uniformity of your accounts but also for the staff’s peace of mind. Your employees will feel more secure filing an expense claim if they know they can follow the progress of your claim.
As long as you digitize your expenses, make sure employees are trained to utilize automated systems, accounting teams will reduce the time it takes to process the costs and entry errors. They will reduce mistakes and help with traceability.
Although spending trends have changed dramatically in the last year, historically, employee allowances have improved over time as companies seek better working conditions for their staff.
Recognizing that these changes will continue and could change dramatically in the short term, businesses must give themselves the best chance of success.
If you put good practices in action with clear guidelines for your staff and combine them with digital platforms, you will be able to manage your company’s business expenses effectively.