Now more than ever, businesses are looking for affordable ways to manage expenses which will help cut costs in the long term. Expense management can be a bottomless money pit, if a good process is not in place, but there is more at stake than the bottom line.
Employee’s who are making expense claims will also feel the effects of poor expense management, and if not rectified will likely affect motivation.
According to a survey conducted by Conferma, 1 in 3 employees have experienced cashflow issues due to slow reimbursements from their employers for their business expenses. They also calculated, from their findings, that employees in the UK alone are effectively lending their employers £321 million a month through expenses!
The same survey also found that 41% of employees admitted they would stop spending money on business expenses if they had to wait too long to be reimbursed. This could lead to lost opportunities and other impacts on business activities.
The Affect on Mental Health
Many different factors can affect mental health, but employers have a responsibility for the general welfare of staff. Almost half of the employees surveyed by Conferma, in the 18-34 age bracket said that they admitted that cashflow concerns were a contributor to stress.
It goes without saying that happy employees are more likely to stay with a company. It would be a shame to lose good workers because they feel unhappy with the expense policy, and the way expenses are handled.
Give Employees Correct Tools to Manage Expenses
Automating expense management has many advantages for employees. They are able to submit claims, and monitor their progress through the system from submission to payment.
The time spent filling in expense claim forms is drastically reduced, with easy claiming on the app or online.
They can be assured that the rules of the expenses policy are being followed to the letter, and the delays usually associated with expense claiming (such as postage times, and manual checking) can be eliminated.
Giving employees this valuable tool, will alleviate a lot of the pains that they feel with manual processes, as well as the numerous benefits to the company.
To find out more about automating expenses, visit MyExpenses.