Per diem for each business is a necessary component and creates a lot of "cost" if you do not manage it strictly. The process of managing business expenses poses big challenges for businesses, especially small and medium-sized businesses, where budget spending is very tightly bound.
In fact, CFOs of many large companies around the world widely recognize that effective cost management can create a source of competitive advantage for organizational growth. In this article, Bizzi will introduce to you the top 5 challenges in the per diem (T&E) management process.
Too many cumbersome processes
When traveling employees incur business expenses as part of their job, employees, managers, and finance departments all want an expense process that is easy, fast, and efficient to manage. . For those using manual cost systems, capturing, recording and validating T&E costs can be a cumbersome and awkward process. Retaining receipts, remembering what the expense policy covers, filling out expense claims, remembering what every transaction is for, not exceeding daily limits – all of these create problems. a challenge for business travelers.
According to Tallie, in 2019, up to 53% organizations had difficulty managing expenses due to employees losing invoices. Therefore, organizations must devote significant processing time to this.
Ability to refund/advance late fees
Typically, employees will wait 2-3 weeks to be reimbursed for expenses advanced to the company. This slow processing comes from the fact that there are many items that need to be approved by managers or bosses before being sent to reimbursement accounting. This will certainly affect the productivity of the staff. In addition, employees who go on business trips forget receipts, lack invoices, and have to supplement other types of information, causing the fee refund time to be longer. This is exactly why automation is essential.
Using a tool like Bizzi Expense will not only ease the hands-on work for staff, but also improve process efficiency by solving the approval bottleneck. Furthermore, approvers will have the power to approve at any time from anywhere, which will ultimately speed up the process.
Policy unknown
With a lengthy per diem policy, it forces employees to understand every single thing. However, not everyone can understand everything in that policy. Instead, platform companies began simplifying policy chapters so that they were easier for employees to understand and follow. Categorize accepted costs to avoid policy violations, this helps the financial accounting team reduce unnecessary process load. With Bizzi Expense, you completely own an effective expense management platform with complete policy information. Employees can easily find relevant information when declaring expenses for reimbursement.
Lack of spend visibility
Businesses that use traditional expense management systems or manual ways to record and forecast company expenses encounter major obstacles in tracking and analyzing month-end spending data. A common complaint among their finance team – limited clarity around employee expenditures and how they are spent. Incomplete data retrieved for analysis leads to incorrect calculations and poor fund management. Reports sent to senior management were inaccurate. They end up making unwise decisions that leave no room for recognition and correction. Having expense management systems in place can make things easier for organizations – they are specifically designed with built-in features to capture employee spending, prepare real-time reports and provide detailed information on spending patterns. With it, there is no need to spend hours calculating and consulting different databases to create reports.
High processing costs
Effective T&E management is a delicate process, especially when your cost management approach is not yet digitized. Many organizations are stuck with outdated processing systems that focus only on improving their cost management methods with traditional methods. They use too much human effort at the input stage and cause team performance to decrease significantly. On average, manual expense processing costs three times more than what can be achieved with a fully automated expense management system. In addition, it can save 70% their time. This time can be utilized by employees to do other important work and increase work efficiency. It also improves work quality by reducing stress levels.
Abandon outdated systems and automate processes with a modern-day cost-effective solution like Bizzi that can increase workflow efficiency with the 80%. Furthermore, Bizzi comes with the Bizzi Expense mobile expense management solution that has industry-specific features that give users complete autonomy anytime, anywhere. With Bizzi, the boss can approve comfortably at any time, accountants are at ease, it's easy for everyone!
Currently, Business Expense Management Platform - Bizzi has been trusted and used by +1200 enterprises and large corporations such as Tiki, GS25, Circle K, PNJ, P&G, VNG, Grab, Ikea, Sabeco , Pharmacity,…
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