7. Eliminate reimbursements
Telling employees to use their own money to pay for business expenses (even if you plan to reimburse them) is an outdated, reactive practice that can and should be retired. Think about it this way: Having employees pay for business expenses out of pocket puts them in the bank’s position.
“Not only do expense reimbursements create inefficiencies across the business; they also hurt your employee experience.”
-Peter Nesbitt, VP of finance at Teampay.
And the burden shows. A full 43% of workers say the combination of factors involved (using their own money, waiting for reimbursement) causes them stress.
Plus, the administrative burden is excessive and no longer necessary. Researchers at Levvel have found that 35% of companies still require expense reports involving paper receipts. The same report shows that the antiquated expense-reporting process costs the typical 20-person business over $18k per year.
Sadly, research shows that smaller businesses tend to bear the brunt of this lag, adopting cloud-based tech at a lesser rate.
Source: PayStream Advisors Travel and Expense Management Report
These woes have been tolerated for lack of alternatives—until now. Agile expense management solutions like Zoho Expense, Expensify, and Divvy are filling the gap.
New and agile cash management products aren’t just for personal finance
Analysts at Boston Consulting Group say the reason a person can run their personal financial life without traditional banks is because of agile and innovative thinking. And now, finally, business banking products are starting to catch up.
Early adopters of these new business finance solutions (like cash management accounts and expense management apps) will gain what Harvard Business Review researchers call the “first mover advantages.” These advantages can help you reach your goals and outperform rivals who still insist on trusting obsolete business banking systems.
Not sure where to start or which products are best for you? A free 30-minute consultation with our outsourced business accountants can help. Schedule one today by calling us at 855-694-4648.