Reimbursing the costs incurred by employees for work-related travels is an integral part of an HR’s job. Yet, with employees responsible for reporting the actual expenses, it might often lead to doubts and trust issues between the parties involved. Since travel expense management is one of the trickiest areas that a business has to handle, expense management software can step in to help.
According to a recent study by Levvel, an improvement in the reimbursement process by over 70% is visible when the right software is used. Due to the complexity in the process and the high-cost attribution in expenses management, many firms are switching to TEM software at an accelerated pace.
Let us explore some of the best travel and expense management practices, which might help make your HR department leaner and more efficient.
Best Travel and Expense Management Practices
1. Drawing a clear line of demarcation
As cliché as it might sound, communication is the key to effective expense management. Clearly communicate the basket of items that come under ‘expense’ as per the company policy.
Framing a unified policy that works well across all levels, and clearly defining the things that don’t count, might be the best option. Make sure to look into the standard rates as per the law of the nation, and yes, keep things concise and simplified.
2. Embrace technology
Out of the many tips for travel expense management, this could be the most important one. Adapt to technological innovations as fast as possible.
With technological evolution picking up, automating expenses is the right way to go. Since most businesses have shifted or are shifting to a remote working mode, it is better to automate things that cannot be managed efficiently manually.
Make expenses simpler to track by using a reporting system on the employee’s side. Using photographic captures as proof of the receipts and recording them instantly is a wise move too.
Remember, the coolest techs might help you in tracking the costing pool as well as knowing the trends of 2021.
3. Keep an eye out for anomalies
Audits and regular checks can turn out to be the perfect option for monitoring expenses. It might help you in understanding the trends, and spotting any fraudulent bills and receipts early on.
What makes auditing child’s play is the right technological ally you can now embrace. Having the best software, with excellent expense tracking abilities, might reduce your burden by more than you can imagine.
4. Understanding the difference between HR claim and financial claim
Unlike what many people think, financial claims and HR claims are not really the same. Hence, it is very important that a clear demarcation between the two is made within an organization.
As the name suggests, the claims in which the financial department owes you something, generally comes under the ambit of financial claim. And a similar logic works for HR claims. A robust TEM software ensures that a clear demarcation between financial and HR claims is made.
Not only does it reduce the department-wise burden, but you can also assess the originating point of expense claims and attribute them accordingly.
5. Manage expenses across geographical boundaries
For organizations with multiple traveling schedules across countries, managing the travel expenses across geographies can be tricky.
A robust travel and expense management software allows submission of the claims without any hassle. Segregation of the report based on area, population size, and purchasing power parity can help in understanding and adjusting the price levels across geographies.
While selecting the TEM software, make sure you go for something that is essentially the best of all worlds (literally).
Conclusion
All in all, any complication in terms of tracking expenses should prompt businesses to switch to a reliable and robust travel expense management app at the earliest. By ensuring the right synergy between technology and usability, such applications can make the expense management process much simpler and smoother. If improved efficiency and reduced costs are your priority, switch to the best TEM apps now!
Reference Link: https://cdn.levvel.io/reports/2018+TEM_REBRANDEDu.pdf
