Business expense reports meticulously document all expenses incurred by employees, from entry-level to executive, during business trips on behalf of their companies. Organizations should implement standardized expense report forms to ensure accuracy and consistency. Many businesses are now adopting web-based Expense Management Automation (EMA) software, which significantly accelerates and simplifies the submission, approval, and reimbursement of these reports.
According to research from Aberdeen, EMA can reduce the time required to complete expense reports by 60%, decrease processing costs by 80%, and shorten claim settlement times by 90%. Numerous companies, including Acceleron, PeopleSoft, SAP, Gelco, and Oracle, offer this software, which integrates processes from report completion to receipt management.
Employee travel expenses represent a substantial portion of a company’s overall expenses, second only to salaries. A survey by a Boston-based research organization found that employee travel can account for one dollar of every five spent by a company. Consequently, businesses are closely scrutinizing these costs. While many executives rely on travel agencies and credit card companies like American Express and Visa for travel arrangements, booking tickets and accommodations online can yield significant cost savings. Research indicates that online bookings can cut costs by up to 20%. Therefore, online systems provide a cost-effective way to manage travel-related expenses. Some companies also negotiate employee-friendly travel policies with preferred carriers to secure discounted rates, further reducing costs.