- On July 26, 2016
- By Beehive HRMS
Top 5 Travel and Expense Management Issues Faced by Small Business’s
In current scenario many sme’s are facing financial crisis due over expenses. The companies that employs thousands of workers which are in fields are unable track their legal expenses. Business managers are spending significant amounts of time and money to track the field behavior of employees and may also try to report that all the reports comply with corporate policies. To give accurate answers to management on this is very difficult without placing a proper expense reporting system.
According to The Global Business Travel Association (GBTA) the 38% of organization spends $500,000 or more on travel and expenses, 17.5 % spends more than $5 million. This are huge numbers!! It is obvious that business are either spending a lot or they are losing a lot.
Lets pick some Expense Management challenges which are faced by SME’s:
- Increasing Travel Costs
- Employees drafts mail and bills to financial teams regarding their expenses while business trip regardless of trip is successful or not they drafts and that’s goes from the companies account.
- Do any one goes for cross checking is the bills and expenses.
- If you have and expense management system you can enter all the details of expense and track those application via system so that you give a proper answer.
- Problematic Receipts
- Sometimes there fake receipts or problematic receipts which doesn’t any authority this can be head to organization as this could be a scam or something
- Unauthorized Bookings
- Sometimes employees comply with established travel policies at the time they book flights and hotels, but at the end movement they upgrade to better seats or more expensive rooms.
- In such scenarios you have to compare initial booking costs with actual expenses and by including in your policies document a clear statement that unauthorized costs will not be reimbursed.
- Data Entry Errors
- If you are in 90’s and still using excels to feel data’s then god save you from errors.
- We all know how you set changes you want in that sheets formats
- Upgrade to Travel and Expense Management software which can give you accurate details of employee and their expenses with detailed reporting with when where why details.
- Paying Too Much for Travel
- Normal billing with additional taxes and some surprise taxes too..
- Always trust on expense management software which gives you exact amount adding and subtracting the valid and invalid taxes and also help in claiming them.
- Poor data visibility and accuracy
- Use Sheets is not a good practice. You will have to manually prepare reports of employees which are spending a lot compare to policies.
- Travel and Expense management system if integrated with HRMS software than it provides all the data which helps you to give accurate statistics comparing their salaries and travel expenses and also the profits which company does. This helps you filter the good performing units of your company
So this are common and main issues cum challenges which are faced by SME’s. Beehive’s Travel and Expense Management Software is the BIG answer to this problems. Trust us penny saved is penny earned. If your department can save money in this we are sure that your business will be a great success.