5 Reasons for Revolut Expense Management
The Revolut Expense Management is now live. What this means is that businesses no longer need another piece of software to manage their expenses – this functionality now comes with the Revolut for Business account! Even better, it flows all the way through to your accounting software, if it is already integrated with Revolut for business.
A lot of employee at SMEs normally submit their expenses manually. In 2019, the majority of business functions have been automated. However, expenses are one of the few areas that still involve an excessive amount of manual processing. Picture stuffing their pockets, wallets and briefcases with wrinkled receipts. These bunched up pieces of paper then get stapled to printed spreadsheets that must be typed up, listing every detail of every item, and then mailed to accounting departments.
Here are five of the biggest reasons why businesses should embrace the Revolut Expense Management functionality integrated into the Revolut for Business account:
1. Revolut Expense Management functionality will speed up processing and approvals while reducing administrative costs
The cost to manually submit, process and reimburse each expense report has been proven to be higher compared to a fully automated solution. It requires a lot of data entry with details being manually entered on spreadsheets, mailed, then verified, approved and entered onto the central accounting software. That makes for a highly labor- and time-intensive process. In addition, the need for paperwork to be manually filed (and ate times shipped is very time-consuming), which in turn, slows down reimbursement times.
The Revolut Expense Management streamlines the whole process.
2. Employee can now submit expenses while on the road
Most employee expenses are incurred while on the road for such things as meals, hotels or car rentals etc. Employee should not be required to keep receipts until returning to the office. The Revolut Expense Management solution will now let employees to simply take a photo of a receipt and send it directly to the system.
From there, the receipt can automatically be read using optical character recognition (OCR), and the expense transaction data is entered into the system for the user.
3. Automation with a solution like Revolut Expense Management lowers the chances of human error
In general, expense accounting requires a lot of data entry, not limited to just the expense (general ledger codes, approval codes etc.). This presents many opportunities for human errors to occur at any stage of the expense reimbursement process. And because audits happen at a later date, the error might not be discovered for a while, if at all discovered.
With a solution live the Revolut Expense Management, an expense line item can now go from receipt to submission to approval and reimbursement with almost no information having to be entered manually. It significantly reduces and, in many cases,, nearly eliminate potential for human error.
4. Limited Enforcement of internal cost regulations
Business regulations and compliance is an area that a lot of small businesses would rather not deal with. For example, some areas of travel policy (such as cost of a lunch) are easy to track and enforce, while others, such as travel day per diems or class-of-flight restrictions that require verification, which can be challenging and time-consuming.
Business-specific regulations, such as booking flights in advance, can also prove tough to enforce, and often may be overlooked by the responsible employee.
The end result is that small businesses end up losing money because of poorly-enforced travel costs regulations.
5. Easier to Prevent Expense Fraud
Is it possible that employees sometimes submit over-inflated or outright fraudulent expenses? Yes!
To effectively combat fraud, a small business using spreadsheets to manage expenses would need to manually verify that every single expense is legitimate before approving it.
With Revolut Expense Management, a receipt can be submitted the minute the expense is incurred.