Most businesses are using social media to keep in touch with their customers. They've embraced cloud-storage systems for corporate data and adopted marketing automation procedures. Maybe they've even made smartwatches part of the company uniform.
Where they're lagging behind the technological curve, however, is in financial management. If you're using outdated systems for expense reporting, cash flow management, and employee spending, you're leaving money on the proverbial table.
Balancing Flexibility and Control
You want your employees to make decisions with agility, but you don't want to bury your business in a mountain of reimbursement requests. That's why outdated expense-reporting systems don't work anymore. They force you to wait for your employees to submit their paper-clipped (and coffee-stained) receipts.
If the numbers on those crumpled slips of paper make you wince, you can't unring the bell. The the money has already been spent.
However, there are better ways to manage your finance — methods that align with the other 21st-century tools you're already using in the workplace. You can grant your employees flexibility in decision-making while exercising control over their total spend.
Eliminating Petty Cash
It sounds like a solid system, but petty cash can destabilize your business. You can't track where the money ends up, and you won't know when employees decide to abuse their privileges.
Debit cards can replace traditional expense accounts and put the control back in your hands. Instead of forking over a wad of cash, you can track your employees' spending and identify trends and patterns that suggest ways to save on business expenses.
Digital record keeping and financial management practice don't just save trees — they also save time and money. Incorporate all of your financial records into one convenient online dashboard. Track expenses electronically instead of via a never-ending paper trail.
Think about how your financial manager spends his or her days. Imagine a scenario where he or she could ditch mindless tasks like sorting receipts and issuing reimbursement checks. Suddenly, your financial manager can devote time to analyzing employee spend and finding ways to cut costs.
Transparency. It's become a corporate buzzword across all sectors, and for good reason. It improves accountability, increases visibility, and creates a more efficient management system. This is never more true than with finances.
An improved expense management system will allow you to clearly communicate your expectations and goals. Employees will know how and when they can spend money, which gives them the freedom to focus on tasks that actually benefit your business.
Think about the time it takes for a single employee to gather receipts, record them in a log, separate business expenses from personal ones, and defend spending decisions to a supervisor. It sounds exhausting. Even worse, your workers are attending to those trivial tasks instead of taking that time to drive the business forward.
The 21st century beckons your business into a more efficient climate. Take control of employee spending and upgrade your financial processes. If you take advantage of available tools and wave sayonara to outdated systems, you'll see improved cash flow, happier employees, and better business decisions.
To learn more about PEX as a business solution, please download our Fact Sheet.
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