October 1, 2020
Average Read Time: 3 minutes
As we discussed in part one of the series, efficient management of your cash flow, including payroll, not only helps your business thrive, but promotes workplace loyalty. Additionally, managing your workers’ business expenses and reimbursements is another key aspect of cash flow that should be addressed.
According to BTN's 2019 Expense Management Survey, only 12 percent of leading organizations are approving expenses within a day, and only 10.5 percent are reimbursing employees within two days of the approval. While those approving and reimbursing within a day or two is not the norm, the survey found that 16.5 percent take more than five days from report submission to approval. The majority take up to four days, and 39.5 percent take more than two weeks from approval to reimbursement. This lag time can create cash management challenges for organizations in addition to a strain on employees.
The traditional expense report process is a task that few people enjoy—including your employees and your finance folks. Whether it is workers having to use their personal funds and wait for reimbursement, or accounting teams keeping track of petty cash, managing corporate cards, or recalculating the balance sheet for late submission of expense reports, the process is cumbersome all around.
Rethinking the operational processes around your expenses and reimbursements is key to creating a more supportive workplace for your employees.
In the past, business expenses such as office supplies, travel expenses, fuel for company vehicles, or client entertainment might have been handled in one of three ways that typically required money out of pocket, an expense report, and a waiting period for the money to be reimbursed.
In all these instances, you are dealing with paper and receipts with many potential points of error.
Let’s face it, the people who submit expense reports quickly are likely the ones stressed about using their own money, and those less strained by the outlay are most likely to wait until the last possible second to file expenses, creating an influx of last-minute tasks for your accounting team. That's creating stress for employees, creating delays in closing your books for the month, and obstructing your visibility into your business expenses and cash flow.
Pre-Imbursementssm is the new, groundbreaking way to take control of business expenses. It’s a solution that enables you to pre-authorize payouts to your worker’s personal card based on rules you define, such as maximum amount and name or type of store where it can be spent. When they use the designated card for authorized expenses within the parameters, the credits are automatically requested directly to the card with no effort by any employee. Additionally, it auto-reconciles the actual amounts once the purchases are made, with the balance of the maximum, pre-authorized amount never leaving the company's account, making it super easy for your finance team. The result? Happier, more productive employees.
At the end of the day, growth is all about gaining control of your money and creating a productive workplace. Of course, it’s about maximizing the money you bring in to the business. But those who optimize the way they move money out will gain the competitive edge and exceed their cash flow goals. Now there are new tools to get that edge through better ways to pay your people and business expenses.
Ready to modernize your payouts ecosystem? Learn how you can accelerate how you pay workers and expenses with our interactive guide.
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