Keep in mind that there will be all kinds of additional expenses in your company all the time. That is especially the case with cheap materials and things that your workers will need every day. Dealing with large orders can be annoying and time-wasting. Therefore, it can be a good option to provide your employees with the ability to deal with these additional expenses.
There are other even more important parts of the expense process, like salaries and ordering essential materials and products. That can make the financial management process more complex, which is the main reason to start using the right tools like the one that you can find at blog.happay.com
When it comes to the approval process, it can cover expenses for traveling, it can give the employees money they had to spend on some materials, and process for your business, but you can also use it to track the expenses and decide how much money can be allowed. The standard process will take much more time because once the worker decide to spend some of the of company money for any reason, it will need to get a bill for that.
On the other side, the financial department will have to check it and approve it as well. As you can see, this can be a long procedure, and it can affect the productivity of some people and processes. That is the main reason to introduce the automated approval process. Here are some tips and guidelines to that in the right way.
1. Choose the Right Form
When it comes to automation, the key is to make it simple and transparent. Therefore, be sure to choose one where the worker can easily implement all details related to the following expenses. There must be some requirements as well, such as the name of the worker, the date when the expenses occur, and the scanned bill that you can check.
Another benefit is that it will help you control the finance in a much better way. According to the statistics, companies are losing billions of dollars each year because they are not controlling the workers in the right way. The biggest issue is when someone tries to abuse this option and starts getting the money for different expenses in his favor.
2. Set the Right Workflow
One of the best ways to avoid any sort of abuse of this money is to set a transparent procedure where the worker will have to explain the need for getting the money. The software can make this process faster and easier with a workflow that you will set.
It should be set with different steps where once the worker gets the money, he will have to add more details, send them to the financial department, and after that, they will check the details and decide whether to approve the request or not.
3. Introduce The New Process
People can easily get used to some things and procedures. Therefore, if you offer automation only as an option, keep in mind that many people might still decide to use the previous model that was slower and that missing some details.
Therefore, the right solution is to organize a meeting where you will introduce a new system to the whole company and explain more about it. Be sure to explain every step starting from the basics where they will have to attach the scanned bill in a digital form along with the additional details.
After that, highlight the feature where they must be aware that the new system will always send the report to the financial department which will take a thorough check of the expense. This is the best way to deal with fake bills and unauthorized expenses. Also, all of these reports will be kept for additional analysis.
4. Set a Strict Policy
It was especially difficult for big companies to follow the reports related to additional expenses. There was always a chance for workers to get that in their favor. As we already mentioned, there is a huge amount of money that is not covered with proper proof taken from the accounts every year. All of this will change with the introduction of the software that workers will have to use when they want to claim money for certain expenses like traveling, gifts, office equipment, and more.
Another important detail is to provide additional rules where you will explain the workers what can be considered as allowed spending. Be sure to check the stats and check the financial reports from previous years, and then compare them to ones that you will get after implementing this system. If you notice a large difference that means that some of your workers were using the approval process in their favor.
5. Use the Right Tools
There are different options available on the market these days. Some of them are more complex, and it depends on your needs when it comes to the right selection. Another factor that can affect your selection is the current system you are using for accounting and financial reports. These two tools need to be suitable. The key is to make it simply and efficient.
What Are the Main Benefits?
We already mentioned some issues companies were dealing with when it comes to manual expense approval. Implementing this automated system will make the process much faster, which can lead to increased productivity.
Also, there won’t be a chance for mistakes on any side. You can expect that workers will start paying more attention to the expenses and following the strict rules that you will introduce. On the other side, they won’t need to worry whether their expenses will be covered on time. You can also use data from this software for additional analysis that will help you determine some unnecessary expenses and prevent them in the future.
In the end, the goal is to prevent workers from taking the additional expenses in their favor, and to secure that the whole process won’t affect other much more important processes in your company.