Uncertainty. It’s the enemy of the business world, and it’s something every company has had to come to terms with since the pandemic.
Covid-19 has forced many businesses to focus as much on internal efficiencies as external growth plans. Many have experienced drops in demand, forcing them to make changes to all kinds of processes.
Before the year 2020, remote working was largely a perk. Now, for many it is a necessity. And digital transformation – something that was happening slowly but surely for many – is now an urgent priority. This is evidenced by a McKinsey report which revealed that thanks to the pandemic, the implementation of advanced technology to boost operations has happened 25 times quicker than it would have done had the world dodged the coronavirus bullet.
Recommended reading: Guide to Managing Company Spend in the Remote Workplace
One of the biggest and most impactful ways advanced technology can help SMEs is by controlling costs and ensuring tax compliance via corporate expense management software. Travel and expenses (T&E) management is for many companies their second biggest indirect spend category. Many know that improving management processes in this area will help them reduce costs and increase efficiencies. Yet, it’s an area that few people had seen as a priority in their digitization plans.
A Forrester research report revealed that almost 30% of executives with responsibility for travel and expense management at firms are still reliant on manual inputting of expenses information. Failing to update legacy expenses systems is costing businesses according to Forrester research which shows that companies that aren’t making the most of the automation opportunities offered by technology face a 29% increase in delays to expense claim processing and a 40% fall-off in employee productivity.
But there isn’t a small to medium business that won’t benefit from the latest T&E tech. Depending on the size of your business, your finance department could have limited resources to manually handle the demands of T&E. You may even be looking to streamline your accounting function and make use of AI-driven, automated technology. In both scenarios, corporate expense management software will benefit your business in three key ways:
Every small to medium business has essential administrative tasks to take care of that don’t generate income. Business expenses management software can handle many such tasks traditionally carried out by employees. Setting and managing budgets, and handling the expenses receipts generated by your team can all be automated. That gives your employees more opportunity to concentrate on business critical tasks. And, of course, with AI handling the numbers, there’s no chance of human error affecting the accuracy of the figures.
Your business can make further efficiency improvements by choosing a business spend management platform that comes with a credit card. All transactions using the card will be automatically recorded by the platform, saving yet more time for your finance team.
Unstable times such as those we’re currently experiencing are requiring many businesses to make more forecasts. Automated expense reporting is a common feature of digital expense management solutions, delivering real-time reports using the latest data. Invaluable if you’re forecasting monthly, weekly, or on an ad hoc basis. The accurate information generated by the expense management software enables your business to forecast with confidence, making growth predictions that are more meaningful as they’re based on up-to-date information.
Recommended Reading: 7 Tips for Better Business Forecasting
Expenses have a major impact on every small to medium company’s tax position. Expense management software can accurately record all financial transactions and apply the relevant tax parameters, making the process of filing taxes and passing tax audits and inspections that much easier for your business.
Recommended reading: Company Expense Policy Best Practices: Laying Foundations Before You Spend Money
If you’re thinking now’s the time to ensure your digital transformation plans incorporate your travel and expenses operations, you’re not alone. The Forrester research we quoted earlier reveals that transforming T&E is now a priority for many business leaders.
Much of this newfound need to focus on T&E efficiencies is down to how COVID-19 continues to impact business and drive changes to the way small to medium companies operate. Business travel has declined, but the break in ‘normal service’ has allowed business leaders time to take stock and see the benefits in investing in a corporate expense management platform such as Volve.
Volve proudly partners with EBOS Cloud Accountants who believe that digitalisation is key to success, and also value the personalised business relationship with every customer. The in-house tech team works hand in hand with professional cloud accountants and partners, Volve, Dashbod, Financio, and Xero to bring useful and value-for-money solutions to achieve your business goals.
We’d be delighted to show you how an innovative spend management platform can help your business thrive in a world that’s significantly different to the one we were all living and working in, pre-Covid-19. Speak to us today!