Although the days of having to rely on Excel and scanners for expense reconciliation are well behind us, unfortunately for many organizations the process is still quite manual and very time-consuming. Office managers become burdened with having to chase down employees for their corporate Mastercard receipts, which in many cases were lost shortly after the transaction occurred. Certify recently published a survey of 500 CFO’s and 50% reported that timely reconciliation was a major pain point and struggle for their organization.
Here are four professional tips that can help organizations improve their expense tracking:
Limit Receipt Collection
Every single receipt does not need to be collected. The IRS cutoff is $75 and many organizations have started to only require receipts for transactions over this amount.
Use a Corporate Mastercard for Heavy Spenders
Many employees that have high monthly spending amounts like using their personal credit cards so they can receive points for the business expenses that they charge. From an organizational standpoint, this is not an ideal situation as employees are incentivized to spend more as a way to rack up points, miles or bonuses. Furthermore, if employees are not reconciling on time, you may not have full visibility to just how much is being spent until well after the fact.
Finding an expense solution that reduces manual employee input will ultimately streamline expenses tracking processes. There are modern solutions available that can intelligently recognize transactions and properly categorize them. For example, a charge from Delta would immediately be flagged as a travel expense. Some providers are able to even link to your email to automatically pull corporate Mastercard receipts based on the dollar amount and merchant.
By selecting a solution that can coordinate budgets amongst multiple employees enables managers to set group budgets, providing immediate visibility to when the limit has been reached. These budgets can be helpful to identify spending at specific events, conferences or departments.