Managing a business is not an easy task. It becomes all the more difficult when you have to handle everything manually. Handling physical receipts and manual verifications is always prone to error. This inefficiency can lead to a disbalance in the finances of the company.
The ultimate aim of every organization is to earn the maximum revenue, and I am sure you also want to rule your industry niche. In present times, with the advancement in technology, why should you take the burden of doing everything alone? Going digital is the key to growing your business.
In this digital era, online payments are surging up like never before. They are replacing the traditional payment methods. Organizations are now using digital means for business purposes that include virtual cards, corporate cards, and many more.
Let us explore some of these options!
Do you deal with a lot of transactions? If yes, then the following options can come in handy.
Virtual cards do not have any physical existence. They are also called one-time use credit cards. They are electronically delivered to you. After acquiring one, you can make online transactions. It will have its unique card number, validity and expiry date, and CVV number.
What are some of its exciting features?
- Budget-friendly – You do not want to spend more than the decided amount, right? It has been seen sometimes that your budget gets imbalanced and you spend more than the required. You want optimum utilization of the resources for your business. Do you know what the best part of these cards is? With virtual cards, you can set your spending limit. Now be stress-free about your limitless spending issues.
- Security – As the rate of cyber-crime increases, you do not want your information to get into the wrong hands, right? These cards are disposable, thereby protecting your personal account information from falling into the wrong hands. If any hacker, by any chance, gets access to the information of your virtual credit card, you can dismiss that card without closing the entire account. After that, you can get a new account. Basically, it will protect you from data breaches.
- Speedy payments – Remember that age-old adage “Time is money”? As these cards do not have any physical existence, the issue of the card arriving by post is no longer there. You would not have to wait for the pin to arrive. Want quicker results and more convenience? Virtual cards are the best financial companion.
Do your employees need to travel a lot? Do they book the tickets on their own? Do they purchase office supplies for the organization? Then corporate cards are the best solution for them. It is an excellent way to track the expenses made by them. Employees are now free from using their own cards or cash. The perks included with these cards are access to airport lounges, hotel stays, etc.
Now, what is the benefit to the company? With these, employees cannot spend on personal things. This improves visibility and leads to better spending controls.
But again, how difficult is it to keep track of the spending of every employee?
Many times, the employee bears the costs from his/her pocket, which are later reimbursed. But to keep proper coordination between the expenses and the reimbursement is an intimidating task. The reimbursement process can take a long time. That is where the expense management system comes in.
According to a study, 46% of the people surveyed still believe in carrying out their spending details manually with those wrinkled receipts. These receipts are then typed into the spreadsheets and then sent to the accounting department.
How tedious is this task?
With the growing digitization, the imperfections of the manual system are becoming more prominent. If you think that the manual process is cheaper, then we are here to break this myth for you.
Do you know that manual processes are five times more expensive than automated processes? It is time-consuming also. As per Global Business Travel Association, you spend around 20 minutes preparing one expense report, 18 minutes to correct it, $58 to process it, and $52 to fix it. Paper documents, word documents, and excel spreadsheets are now part of the history.
It is high time that your business should move to the expense management system. Here is why!
Improves decision making – What happens in a manual system? You extract the data from different sources, the finance team checks where the funds are being utilized, and then produces a report. This process could take at least a week. This impacts the data accuracy and restricts the visibility of the company’s cash flow.
But with the expense management system, extensive reports on all the expenses like policy violation, trips, and reimbursements can be made quickly. According to experts, organizations experienced a 64% reduction in errors by using this system. Within seconds, you can check your employees’ spending patterns.
This will allow you to make quick decisions. This leads to more visibility, and ultimately it becomes easy to track your firm’s financial performance and examine cash flows.
Enhances the rates of policy compliance
Without having a proper system, it becomes challenging to maintain compliance and enforce travel expense policies. The business starts pouring up with the spending patterns. But again, entering each detail into the spreadsheet becomes a daunting task. The professionals at Bentoforbusiness.com suggest companies use solutions ranging from expense management systems to virtual cards to accounting integration and whatnot.
You can customize your system according to your firm’s travel policy. This will result in automatic detection of overspending. It makes the work easier for the finance team to examine the spending compliances within no time.
Managing finances is vital for all the business houses. In the modern age, technology acts as a boon for companies. And an expense management system is the icing on the cake. It is beneficial not only for the employees but for the business as a whole. With this system and other digital means, as discussed above, you are sure to save a lot of time and that too in a user-friendly manner. Still confused? Then go and check yourself. A good deal is waiting for you!
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