Nowadays, when the pace of globalization increases the employee’s rides all over the world requiring a rate of about 10% of its annual budget, the travel expenses for business represents one of the largest segments of the cost of a company. In these conditions, the software tools that reduce costs and ensure an efficient management of deductions process can make a huge rate of return on investments.
Those organizations that constantly revise their operational processes, in order to reduce cost of travel, succeed in making major savings. On the other hand, according to a KDS study developed in the US and UK in order to understand the attitudes and actions of professionals in the business environment in terms of expense reporting, many companies continue to use outdated processes that are inefficient to manage these expenses.
Thus, while the majority (45%) of the 1,200 surveyed people use an automated solution to achieve expense reports, almost as many (41%) said they still use spreadsheets. Almost half of those who are still using spreadsheets said that this manually process takes between 30 minutes to an hour, while a significant percentage (18%) responded that such reporting requires two hours of completions.
In their business trips many employees need to fulfill their task of keeping track of spending and tax bills. 73% of them aim each time to store all these documents in one place, like a wallet or an envelope, but they always face the challenge to organize them and to track the numbers of receipts and check them with the money spent. In this way, miscalculations can be easily made and employees can lose the evidence of payments. Only a small fraction of employees, 11%, responded that they have access to an online solution which helps them scan and record all bills as they arise.
Moreover, 80% of research participants confirmed that they always complete expense reports during working hours, which certainly has a negative impact on their productivity at work and is waste of time and money for the entire company.
The study also showed that 75% of employees who travel for business must report their expenses monthly or quarterly basis, leading to a large number of receipts that they should track. And those who need to take out money from their own pocket during the business trips must wait a long time in order to get their money back.
Another major problem is related to the “blossom” of travel expenses by employees. When it comes to report the travel expenses, the employees believe that honesty and transparency is the best option. But while most employees claim that they report fuel costs for the entire distance traveled, nearly a quarter of them (22%) tend to round the amounts spent on gasoline or diesel up to the equivalent of about 15 km. It may seem a minor amount when it is considered one employee, but these costs can become significant sums in an organization where this becomes a general practice.
In light of the above data and in order to meet the needs of companies whose business involves frequent business travel of employees, Smartree recently launched MyStaff Expenses software solution that provides automatic management of the employee travel orders and expense reports, thus simplifying employee relationship – manager – accounting.
Basically, MyStaff Expenses was designed for automated management of employee expenses, controlling the expense reports, simplifying the approval process travel orders and real time monitoring and analyzing the cost of a company. All these features are accessible from mobile devices and can be easily integrated with the accounting module of any company.
More details about: MyStaff Expenses Benefits
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