Expense reimbursement and its difficulties to employer

Reimbursement becomes a complex issue for the finance department. As we know, Many staff may find an opportunity to mark up the payment. They do this thing for their own benefit.

Therefore, many companies implement reimbursement processes regulation to avoid this issue. However, this rule sometimes is very complex for its implementation. As a result, it turns into tedious employee hassles. 

Highly complex expense reimbursement rules will impact inefficiencies across the business operations. It also affects the employees’ execution process with possible delays.

In this case, it is essential to know employee grievances in this process. It will result in the proper implementation of this procedure. What is the main issue on this thing? Let’s check out the below information.

 

Time-Consuming due to procedure complexity

Expense claim reports may require considerable amounts of time to complete. According to the Global Business Travel Association in 2015, The staff may demand about 20 minutes to compose one expense report.

The employee spends hours reporting expenses, collecting receipts and transaction data. Then, the manager has to review and approve the request before sending it to the finance team.

Before the final process, the finance team requires time for reconciling and processing the claims and transactions. It means that the employee likely has to wait for the procedure for payment refunds.

In this case, a web-based system can offer a solution to cut time consumption on reimbursement procedures.

Ambiguity In Policies Frustrates Employees

Some companies might have less comprehensive policies, which lead to unwise spending by the employee. In the end, it causes refundable payment issues by the employee.

The problem with the expense reimbursement process is a negative experience for your employee. The expense reimbursement process must be an indispensable way to grow your business globally, not a roadblock.

Proactivity Is A Key

The number of issues within the expense reimbursements process comes from the transaction report. It happens because the expense reports are often submitted days or weeks after the transaction process.

Due to this situation, the finance department may struggle to process it. If they may not receive any concrete evidence, this department may face a problem on the auditing side. That is why it will take time to work on it.

A comprehensive with a simple system can secure the employee obeying the reimbursement policy. By enabling pre-approvals, finance teams can manage the employees to get payment refunds while still keeping control over this spend.

No Receipt, No Reimbursement

Most expenses claiming processes require a receipt as based evidence. The purpose is to verify every payment, such as the date and amount of the transaction.

Nonetheless, it also becomes a usual issue among the employees when they lose their receipt. If this situation occurs, they may find it difficult to claim their expense reimbursement.

To tackle this issue, the company can use a mobile claiming system. The finance team can obtain the record on the day of the transaction easily. The process is straightforward and secure, like WMS claims expense feature.

The staff only sends the receipt record through mobile apps. It will record automatically on the system and report it to the finance team directly. This system also offers safety as anticipation if something happens with the receipt.

Payment Delays

Reimbursements are the number one issue for employees because of payment delay or its complexity. Many factors cause these issues. It starts from a complicated process until missing critical information.

Ultimately, payment delay may result in the process faulty by the finance team. As a result, It will cause a negative experience for the employee. It also may affect their productivity.

As explained above, we know that expenses are a necessary part of many employees’ lives. Reimbursement reports may have a difference from a company to another company. As a result, employee reimbursement for expenses paid typically takes place.

Using claim management tools can overcome these challenges. The software enables the employee to track their expense claim and help the finance team with the automatic calculation.

Therefore, The claim expenses mobile apps will eliminate all those issues mentioned above. You can try the claim features management by WMS. It can help your finance and employee to simplify the claim processes. Do you want a demo of WMS features? Do not hesitate to visit us at this link

AUTHOR: Sibil Aina
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