Expense tracking software facilitates frenzy of employee expense submissions
December 26, 2012
There are many things that are rushed at the end of the year, especially among small and midsize businesses. These can be preparing finances for the coming year, making sure processes are in place for operations to run smoothly over the next few months and many other aspects. Employee expense entry is another element often left to the last minute. To help deal with what can be a chaotic procedure, companies can use expense reporting software
to ensure all data is maintained and processed. The technology also gives owners peace of mind by being up-to-date with expense tracking compliance
.Holiday season means flood of expense reports
According to Reuters, many accounting departments and professionals at small and midsize businesses are tasked with managing the barrage of expense reports that are filed toward the end of the year, mainly by employees who have forgotten to submit them for approval. The source cited research by accounting firm Concur, which revealed that this year, December 19 was the busiest day for businesses in terms of expense reports. Staff members processing these submissions went through double the daily average of what they normally see.
This expense rush is not good news for businesses, as the source notes that companies can pay extra in state and federal taxes for late reports. Additionally, workers who process the information are more likely to make mistakes when dealing with vast amounts of data that exceed what they are used to handling.
"It's like sitting in a car and letting someone drive you down the Autobahn going 80 miles an hour [when] their eyes are closed," said Nicole Fende, financial consultant and president of the Small Business Finance Center. "You're going to crash and it's going to be bad."
The source recommends that business owners offer small incentives and rewards to employees who file their expense reports early. This strategy could give staff members the boost they need to get this task done sooner.Expense management software makes process easier
Companies can also use expense tracking software
to manage reports more effectively. This technology provides many benefits to businesses, including an easier method for submitting and processing expenses that allow employees from several locations to file their reports for approval.