MAJOR ISSUES IN MANAGING EXPENSE CLAIMS MANUALLY
When expense claims are reported manually then a number of issues crop up, that leads to loss of time and adds up to the cost of the company.
Issues in managing expense claims manually are as follows:
1. Errors in Manual data entry:
Each expense report has to be entered manually by the employee and then the same has to be approved by the Finance Department which makes the process prone to errors. Wrong amounts will get approved which adds to the risk faced by the organization.
As per survey, average error rate in manual data entry is 1.5%, which means that for every 200 entries, 3 incorrect amounts would be claimed by the employees. This error percolates deep into the financial statements of the organization and takes HOURS to be traced by the accounts team.
2. Loss of Supporting Documents:
Claiming expenses is the most tedious activity for any employee as it is always hard for the employees to get the receipts in order. Even if they do store the receipts properly, the data on the receipts is not visible after some days, so it’s as good as having no receipt.
A company’s policy does not allow an employee to claim the expense without the supporting document to authenticate the validity of the transaction. Hence the employees end up losing money or may have to resort to fake supporting documents.
Using a mobile application like BizHRS, will help the employees to store the expense receipts and claim the expenses on the portal on real time basis.
3. Time Consuming:
The main purpose for an employee to join the organization is to add value through the core business of the company and not get engrossed in activities which do not add value. Claiming expenses manually adds to the work load of the employee and hampers the productivity in the normal course of action.
With BizHRS, the employee will be able to claim and get it approved in very less time as compared to manual expense claims.
4. Checks based on policy:
Every organization has certain set of policies based on which the employees are allowed to claim the expenses. Many a times due to manual intervention, the finance department approves these expenses either intentionally or by mistake. This adds to the overall burden and hampers the effectiveness of the policies set by the organization.
With the in-built checks in the mobile application, these errors/ mistakes could be overcome helping the organization to adhere to those policies.
To add value, every organization must move towards automation which will help to bring an overall growth in the organization.