Business expense reports meticulously document expenses incurred by employees during business travel on behalf of their organizations. To ensure accuracy and efficiency, companies should utilize standardized expense report forms. Increasingly, businesses are adopting web-based Expense Management Automation (EMA) software to streamline and expedite the submission, approval, and reimbursement processes associated with these reports.
According to research by Aberdeen Group, EMA can significantly benefit organizations. EMA reduces the time spent completing expense reports by up to 60%, decreases the cost of processing each report by as much as 80%, and slashes claim settlement times by an impressive 90%. Several vendors, including Acceleron, PeopleSoft, SAP, Gelco, and Oracle, offer this software, which integrates processes from initial report completion to receipt processing.
Employee travel expenses represent a significant portion of a company’s overall expenditures, second only to salaries. A survey by a prominent Boston-based research firm indicates that travel-related expenses account for one dollar for every five dollars spent. Consequently, companies are closely scrutinizing these costs. While many executives rely on travel agencies and credit card companies like American Express and Visa for travel arrangements, significant cost savings can be achieved through online booking. Research suggests that online travel management can reduce expenses by approximately 20%. Therefore, online systems provide a cost-effective method for managing travel-related expenditures. Furthermore, some companies negotiate employee-friendly travel policies with preferred carriers to secure discounted rates, further minimizing costs.