How Automated Expenses Work Better for Employees

Recently updated on March 7th, 2024 at 09:29 am

How Automated Expenses Work: Keeping track of expenses can be tough, especially in a constantly changing business environment. The need to switch vendors or source products or services from different suppliers can throw a wrench in any accounting system. And as costs fluctuate due to inflation and other market factors, it can be easy to lose track of what a business is spending—even for an experienced accountant.

The COVID-19 pandemic made the situation worse, particularly because it introduced the hybrid office, which further complicates a company’s expenses. For many organizations, hybrid work arrangements can help cut expenses—but you don’t know what you can cut if you’re not sure what your costs are in the first place.

The Hidden Cost of Keeping Track of Expenses

The real cost of expense accounting can get complicated, especially with the current shift in work environments. Here are some issues that can get in the way of an efficient expense-tracking system.

The Cost of Using Spreadsheets

Muddling through endless spreadsheets may be the most resource-hungry process in an expense management system. The issue is less with the spreadsheets themselves and more about time. It takes an enormous amount of time to come up with formulas, check their results against what you expected, and make sure they’re all aligned.

This complicated—often frustrating—process can consume thousands of people-hours a year. This can force you to pay overtime and holiday time to employees who manage expenses, as well as suffer the opportunity costs associated with them not being able to work on other projects.

How Working From Home Complicates Expenses

When employees work from home, it can bring convenience to the employee and some savings to the employer. But there may also be some novel expenses associated with a work-from-home arrangement.

For example, if an employee doesn’t have adequate internet and you have to foot the bill so they can stay connected to the office, that monthly expense has to be accounted for. Also, if employees use a company vehicle and work from home, you have to differentiate between the miles they drive for work and those they drive for personal reasons.

As a result, the expense picture can get complicated very quickly. Fortunately, Automated Expenses can make it easier.

How Automation Can Help

An automated expense management system can take a lot of the burden off the shoulders of your employees. You can set up the system so that it automatically records expenses, puts them in the appropriate categories, and reconciles your books. You’re also able to automate the production of expense reports by employee, department, or across your entire organization. Automation removes the work of collecting and organizing figures into a central location as well as the time-consuming task of formulating, checking, and managing spreadsheets.

In addition, an automated system can produce interactive visuals. You or employees can use these to gain a better grasp of the expenses of your organization, as well as evaluate them to identify issues and areas of improvement.

BI gives you accounting business intelligence software that can make it easier for employees to manage expenses. With PathQuest BI, you can automate the collection of expense figures and reports detailing your expenses and make them easy to visualize. Start exploring PathQuest BI’s features today with a free demo. Check some videos to learn more