What is an expense management system and how does a software like this simplify what your HR does? This article takes a look at the many benefits of an expense management platform.
This is the digitalization age,
and businesses all over the world are investing in cutting-edge technologies to move away from manual processes that have been in place for years. Digitalization benefits businesses in a variety of ways, including streamlining business processes, lowering costs, increasing productivity by many notches, and gaining a competitive advantage. Every department in the new age business exemplifies how technology can transform how businesses operate.
The HR department, which is one of the most important divisions in today's companies, has also undergone major changes in how it operates. Today, most businesses have abandoned manual HR processes in favour of modern HR applications. The digital HR software solutions that we see today, such as Digital HRMS, Zoho and Beehive HRMS, have several modules to cater to your every HR feature – from recruiting and onboarding to leave and attendance management, as well as business travel and expenses.
One of the main functions of HR is to manage employee expenditures, and automating this process will make it quicker and more reliable, as well as reduce errors that are typical in manual paper-based processes. An integrated expense control system that streamlines the entire process is what businesses need. Digital HRMS is an example of such a network, with various functionalities to meet the needs of today's businesses in any area of cost management. We'll look at the main advantages of using an automated expense management system like Digital HRMS in this article.
1] Transparent Expense Request Processing
The conventional paper-based cost control scheme has a number of disadvantages, one of which is a lack of clarity. To put it another way, it was frustrating for staff to learn about the status of claims, which took days to process.
Furthermore, the workers have no way of knowing why their applications were denied. This problem is addressed by sending automatic updates to all stakeholders at each point of the reimbursement claim phase.
2] Access to Reports and Analytics
Creating reports using a manual paper-based method is simply not feasible. Reports, on the other hand, are essential resources for businesses to evaluate trends and patterns in employee cost across the board. Here's how an advanced expense management system like Digital HRMS can help with reporting. The platform enables businesses to generate insightful automated reports that highlight key insights that aid in making informed decisions.
3] Faster Reimbursement Claims Processing
The entire cost control process becomes simpler as the manual process is replaced by automation. In addition, most cost control programs have a mobile app that enables access from anywhere at any time. The stakeholders will be able to process the request even though they are not in the office. This helps in the prompt payment of expenses and reimbursements.
4] Compliance with Company Policies
The expense management area, more than any other, sees the most fake submissions. Many workers take advantage of the reimbursement clause by sending claim proofs that are much more valuable than the actual sum expended. This type of non-compliance is difficult to monitor using a conventional paper-based method when a company has a large number of employees.
However, since everything is online on a single website, an advanced employee management system like Digital HRMS can be used to exchange automated alerts of suspicious expenses. This ensures compliance while also saving the organization money.
5] Employees Say Goodbye to Paperwork
Employee management used to be synonymous with mountains of paperwork, as everything had to be stored and registered for future use. This meant that in order to file the lawsuit, the workers had to spend hours filling out paperwork. Automated cost management systems, such as Digital HRMS, have changed things for the better, and now all an employee needs to do is fill out a questionnaire electronically by logging in and going to the HR software, which takes just a few minutes. This benefits the customer while also increasing employee involvement.
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