Chrome River CURRENTS

Money, money, money! Where does it go? Keeping track of expenses can be a challenge, and it's vitally important for any organization to keep a close eye on the outflow of funds. However, training staff to track expenses can be tricky, especially when it's done manually. When your expenses aren't tracked properly, it costs your organization time and money. Using expense management software can make your staff feel much more financially savvy and will help control your expenses.

Mobile solutions have become critical in integrating business and technology. If designed and executed effectively, they have the ability to speed productivity, simplify the user experience, and offer added convenience to end users. However, just adding mobile isn't going to do much by itself. You need to develop a mobile mindset, thinking about how innovative mobile solutions will enhance your business model at every level of your organization without causing disruptions and distractions.

If the news that close to half (42%) of the 958 travel managers polled in the 2014 AirPlus International survey are bracing for significant increases in travel costs has you tempted to go back to micromanaging every nickel and dime – doling out travel vouchers like they were a precious commodity – you might want to rethink that strategy.

Earlier this year, Forrester Research surveyed 348 financial decision-makers around the globe regarding corporate expenses. Almost a quarter of executives tallied indicated that Travel & Entertainment (T&E) expenses were one of the top three most challenging operating expenses to control - second only to maintenance expenses.

Finance departments already routinely use online platforms to collaborate and communicate with users. Now, new mobile apps are proving useful for employees who work on the go, an article on AccountingToday.com reports. Whether your organization needs online expense reporting, document access or just a quick way to look up data, a mobile app may offer the most convenient connection to your accounting department.

For growing companies, keeping up with ever-evolving technology is a core objective. The key to successfully executing on that objective is to ensure that the changes being implemented will be adopted by employees. With computer literacy levels varying dramatically within an organization, driving that adoption is easier said than done.

Expense report approval and reimbursement is one of the processes for which forward-looking businesses have turned to technology in order to cut costs, speed turnaround time, and increase data reportability. Such companies recognize that the process of shuffling paper receipts from desk to desk for approval and allocation is no longer a viable solution. They also recognize that most home-grown systems can't offer all the functionally and analytics offered by vendors that focus exclusively on expense reporting.

Recognizing the need for and role of technology in dramatically improving the expense reporting process is a great first step. The daunting task then becomes finding a differentiating factor in the solutions that are available. The key factor to focus on is how much effort it will take to get users to adopt the system. Keep in mind that there are valuable people in an organization who aren't as computer savvy as others.

Welcome to the Chrome River Currents monthly digest! Each month we highlight the latest news and analysis on business travel, expense management and online expense reporting. This month, we’re focusing on helping organizations use cloud-based software in tracking business expenses. We offer tips on using analytics and mobile tools, and introduce our four-part series on reporting travel and entertainment expenses under an IRS accountable plan.

On a recent US Airways flight, we pulled into the gate later than our expected arrival time.  The flight attendant, no doubt in an effort to sound considerate, asked everyone on the plane to please let those passengers trying to make connecting flights disembark first.  I thought, ‘What a ridiculous request!  Though I’d be more than happy to oblige, how will the rest of the passengers—all of whom will be jumping out of their seats as soon as we come to a stop—know exactly who among us meets that requirement?  Would it be the people who look exhausted, flushed, nauseated or annoyed?  That would include everyone!’

Depending on your company’s policy, you might find expense reimbursement for mobile phone bills to be one of the most contentious topics for expense approval.  Most companies have a cap on what they will reimburse each month, and it’s not unusual for employees to accidentally get hit with a bill that is way beyond what they expected. 

There isn’t a business out there that isn’t looking to find a way to operate more efficiently. After all, in the current economic climate, keeping a close eye on the bottom line is more important than ever. You can’t afford to let any efficiency-maintaining opportunity to cut costs slip past. Whether you’re the CEO of a major corporation or operating your own small business, you’re probably looking for ways to streamline your expense management.

One of the best ways to do this is to make sure that you have control over who gets to use an expense account and which items are permissible. Too often, companies neglect to ensure that only authorized expenses are reimbursed. It might not seem like much when the costs are only a couple of dollars, but when those dollars are multiplied by various individuals over the course of a year, it can mean a substantial loss. By making sure that you’re controlling what is allowed, you’ll help ensure your bottom line stays strong. If you find that employees are failing to comply, you can provide them with concrete information on reimbursable vs. out-of-pocket expenses.

Another way to streamline expense management is setting up an expense overview schedule. Every quarter, take some time to go over the year-to-date expenses, find out which areas are costing the most, and make adjustments accordingly. For example, if you find that lodging is costing more each quarter due to price increases on the hotel end, you can research comparable lodgings at a lower cost. By reviewing expenses on a regular basis, you’ll make sure that you’re not caught off-guard by cost overruns.

One of the most effective ways to cut costs and save time is to automate your travel and expense reporting system with a product like Chrome River EXPENSE. Your company might be spending too much time and creating too many problems by using outdated expense reporting procedures. Chrome River EXPENSE shows employees precisely how much they can spend, which expenses will be covered, and when an expense falls outside the guidelines for reimbursement. Having an automated expense system allows you to easily submit expense reports, analyze spending data, and produce proper documentation when it comes time to submit annual budgets and file tax returns.