It's no secret that the reimbursement process for employee expenses can be slow and cumbersome. Employers have to worry about collecting receipts, verifying expenses, and getting the reimbursement check to the employee in a timely manner. But with a few simple changes, you can speed it up and make it more efficient for everyone involved. In this article, we'll outline some of the best ways to do just that.
The Problems With Current Employee Expense Systems
There are a few things that can bog down the reimbursement process:
- Paperwork: Employees often have to fill out lengthy expense reports and submit them for approval. This can take days or even weeks to complete.
- Approval Delays: Once an expense report is submitted, a manager can take several more days (or even weeks) to approve it.
- Reimbursement Delays: After an expense report is approved, the reimbursement check can take several more days (or even weeks) to process.
- Lack of Communication: The entire process can be confusing and frustrating for employees, who often have no idea where their expense report is or when they can expect to be reimbursed.
Thankfully, there are many solutions to ensure that these issues don't make their way into your organization.
6 Tips To Speed Up The Reimbursements
When it comes to employee expenses, there are a few key things you can do to speed up the reimbursement process:
Submit Expenses On Time
One of the most significant delays in the reimbursement process is when employees don't submit their expenses on time. Make sure you have a clear policy outlining when expenses should be submitted, and hold employees accountable to that timeline. For example, you could require employees to submit their costs within 48 hours of incurring them to ensure that they're submitted in a timely manner.
Have A Clear Expense Policy
Do you have a clear and concise expense policy in place? If not, it's time to create one. A well-defined expense policy will help ensure that employees understand what expenses are eligible for reimbursement and will also help cut down on the number of receipts that need to be submitted (since only eligible expenses will be reimbursed). For example, your policy could state that only business-related expenses incurred while away from the office are eligible for reimbursement.
Implement An Efficient Validation Process
The validation process is an essential part of the reimbursement process, but it doesn't have to be complicated or time-consuming. By streamlining your validation process, you can speed up the entire reimbursement process. For example, you could set up an automated system that verifies expenses against your expense policy and only sends eligible expenses to be processed for reimbursement. That way, your accountant or bookkeeper isn't wasting time processing expenses that aren't eligible for reimbursement.
Use Automation To Save Time
If you're still using a paper-based reimbursement system, it's time to make the switch to an electronic one. Electronic reimbursement systems are more efficient and easier to use and can help speed up the entire reimbursement process.
There are many ways to automate the expense reimbursement process, from online receipts and submission forms to automatic payments. By taking advantage of automation, you can save time and make the reimbursement process more efficient for everyone involved.
Improve Your Expense Report System
If you're using an outdated expense report system, it's time for an upgrade. There are a number of ways to improve your expense report system, from online submissions to digital signatures. By making a few simple changes, you can make the reimbursement process more efficient and less time-consuming for everyone involved.
If you're not sure what parts of your expense system need to be upgraded, check with your bookkeeper or employees to troubleshoot their most common pain points.
Use Expense Management Software
There are a number of different expense management software programs on the market, and they can be a valuable tools for streamlining the reimbursement process. Expense management software can help you keep track of expenses, manage receipts, and automate the reimbursement process.
If you're not sure which expense management software is right for your business, you'll want to consider using high-quality software like Jenji. Jenji is an expense management software that's designed to save you time and money. It's easy to use and offers a number of features that can help you streamline the reimbursement process, including online receipt capture, automatic payments, and digital signatures.
By taking advantage of expense management software, you can improve your reimbursement process and save time in the long run.
The expense reimbursement process doesn't have to be complicated or time-consuming. However, by streamlining your process and taking advantage of automation, you can make the process more efficient for everyone involved. To get started, you'll want to implement a clear expense policy, set up an efficient validation process, and use expense management software to automate the reimbursement process.
For more information on expense reimbursement, check out our resource center today.