Whitepaper  

8  Reasons    To  Switch  From  Spreadsheets  To  An  Automated  Expense  Management  System  

May  2012    

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• 7%  of  company  budget  allocated  to  T&E  Expenses    

 • 45% decrease in time

spent on expense reporting  

 • 28%  shorter  approval  

periods      • 20%  decrease  in  policy  

violations    

8 Reasons To Switch From Spreadsheets to An Automated Expense Management System The importance of expense management within a company has grown in prominence within the past decade as new technological advances are made to highlight the importance of such vital functions within the financial departments of a company. In 2011, 41% of companies indicted expense management is as critical as other internal functions within their company, while 39% of companies indicated expense management has grown in importance, according to a 2011 Aberdeen Group Report. With the average company allocating 7% of its budget to expenses related to travel and entertainment, it comes at no surprise finance professionals place heavy weight on the importance of expense management within a company. Although travel and expense (T&E) management is seen as a vital function within a company, it is astonishing to see well-organized corporations using a manual process to manage expenses. Spreadsheet based templates, while a vital tool in a corporate setting, are not designed or equipped to manage multiple departments or employee expenses. Managing T&E spend via spreadsheets is truly not best practices due to its lack of receipt management functionality, lack of T&E reporting and inconsistent ability to control employee spend. Despite its limitations, the majority of companies’ continue to use spreadsheet-based programs for expense management and expense reporting processes. This is represented, as over 90% of the companies who have made the switch to Certify’s automated, web-based solution have transitioned directly off of a spreadsheet based, manual process. As finance professionals continue to see the importance of expense management and the strong benefits an integrated system can provide, more and more companies continue to make the switch to a web-based system for their travel and expense management processes. If you are still using spreadsheets for expense tracking, take note of the 8 reasons to make the switch from your highly manual processes to an easy-to-use, automated solution listed below.  

Key  Report  Statistics      

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1   Automate Expense Reporting In a manual process, finance processionals spend a great deal of resources manually gathering and verifying input data, developing formulas, designing charts and distributing the documents throughout the departments. The submitting and approval processes associated with expense management are drawn out and dependent upon the organizational workflow within the finance department.

If you have ever traveled for business then you will have completed an expense report, most likely using a manual spreadsheet. The process typically goes something like this; save dozens of paper receipts, attempt to complete a spreadsheet and log meals, taxi fares, airfare, hotel reservation and cash expenses. Stuff the paper receipts in your wallet, briefcase or suitcase, hoping they will get back to the office safely. Then once in the office, search for the expense report spreadsheet template and hope you get the latest version. Once you complete the spreadsheet, you staple the receipts to a sheet of paper and then hand or mail the report to your manager. At this point, it sits on your manager’s desk, lost along the other dozens of reports waiting for approval. As it sits there, you wait and wonder what the status of your reimbursement is. Once the report is approved, the report is then handed on to the accounting department where they review the expenses and if final approval is made, a check may be issued to you by mail or during the future payroll period. This manual process, as a whole, can take weeks or even months, depending on the organizational structure of your company. Sound dreadful? It doesn’t have to be.

The process of managing expenses can be streamlined within an automated system, beginning with the capturing of receipts using a mobile phone, creating an expense report automatically, triggering workflow and approval processes with automated emails updating all managers and the employee of the status of the report. Companies who implemented expense management software into their companies found it increased their management workflow review and approval processes by 57%.

With automated, web-based systems such as Certify, employees can create an expense report, send it for approval with a click of a single button, get it approved and be reimbursed all within minutes. The desire for an automated expense management solution is by far the number one reason companies decide to implement Certify, with over 81.6% of Certify’s current clients naming it the main reason for making the switch from their manual spreadsheet based systems.  

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Save Time Making the transition from a manual expense process to an automated system will save employees, managers and accountants a great deal of time. As discussed previously, the manual process for completing an expense report and the reimbursement process can often take months. With the use of an automated system, the process can take minutes to complete.

The amount of time saved using an automated system is represented in numerous ways. The biggest time saving feature of automation, and the feature that brings the highest employee satisfaction, are shorter employee reimbursement periods. A study released by the Aberdeen Group in May 2010 reported companies that integrated with an automated expense reporting tool found a 28% shorter employee reimbursement period. The decreased time in the approval process comes with the nature of an automated and online-based solution. Once an employee submits an expense report online, the manager is sent an email notifying them of an outstanding report and can quickly review and approve the expense report and submit this for reimbursement.

The second largest time saving benefit of an automated solution is the actual time it takes to create an expense report. With the use of a mobile phone device, employees can begin drafting their expense report as soon as they receive their first receipt. With Certify, it takes an average user 20 minutes or less to complete and submit an expense report, a reported 45% decrease in time spent on expense reporting*.

Additional ways Certify users are saving time:

1. No longer having to check for

policy violations manually

2. No longer having to manually create charts and graphs

3. Eliminated the potential for

error from complex spreadsheet formulas

4. Eliminated the need for

mailing reports, receipts and reimbursements

5. 0  

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10  

15  

20  

25  

30  

35  

40  

45  

50  

10  min  or  less   10-­‐20  min   20-­‐40  min   40-­‐120  min  

AverageTime  Spent  Creating  An  Expense  Report  Before  &  After  Using  Certify    

Before  Certify  

After  Certify  

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Save Money Saving corporate dollars is one of the largest benefits of using an expense management solution. According to a survey conducted by American Express, companies can spend as much as $64 processing a single expense report. The cost per expense report is determined by the time spent creating, approving and reimbursing the report, as well as the cost to print and mail the report to the appropriate personnel. The obvious money saving benefit of an automated solution is the decrease in time spent on the actual report. With a faster approval workflow process the employees can allocate their time and resources in other ways, therefore increasing productivity and saving the company money. Also, with a web-based system, the need for printing and shipping a report is no longer necessary. The employee can submit an expense report and receive manager’s approval within minutes from their personal computers or mobile phone devices. Although decreasing the resources spent to process a single report is important, the greatest money savings come from the increase in policy compliance and financial control managers gain. In a manual setting, a T&E policy may be in place but the ability to control and enforce it is vastly more difficult as violations are left to be determined by the approver. With an automated system such as Certify, when an employee reports an expense out of policy both the employee and the manager will be notified of the violation. This brings policy violations to the manager’s attention immediately, decreasing the number of policy violations upward of 20%. With the various money saving benefits of an automated system, companies who implemented the software spend an average of $7.17 per single expense report, compared to $64 per report for those without an expense management system.  

3  “Spend  89%  less  per  expense  report  with  an  automated  system.”  

$0.00    $10.00    $20.00    $30.00    $40.00    $50.00    $60.00    $70.00    

Manual   Automated  

Cost  Per  Report    

Process  for  Expense  Reporting    

Spend  Per  Report    

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 Eliminate The Use Of Spreadsheets Although eliminating the use of spreadsheets is not the number one reason for making the switch to an automated expense system, it is tied for second with the ability to streamline the approval processes. Over 57% of companies who have implemented Certify report eliminating paper receipts and the use of spreadsheets as the main reason for making the switch from a manual process. Since its launch in 1985, finance professionals alike have been relying on the manual processes of Microsoft Excel to manage corporate expenses. The limitations of a spreadsheet program rely on its lack of functionality beyond the basics of manual reporting, calculations and formulas. Working within a spreadsheet brings the possibility of incorrect formulas, uncontrolled changes of the basic structure of the document as it passes from employee to employee, as well as missing policy violations. As a spreadsheet based program works well to keep track of a single set of data, it is not designed to be a fully functional expense management system. Companies who implement an automated system for expense management find a significant decrease in the need for spreadsheet software for their expense processes. This is represented as 92% of Certify clients report completely eliminating or significantly reducing the use of Excel once introducing Certify into their company.

4   57%  of  Certify  clients  made  the  switch  from  a  manual  process  to  

eliminate  the  use  of  Spreadsheets  

2%  

5%  

39%  

54%  

More  

Same  as  before    

Much  less  

Not  at  all  

Spreadsheet  Use  After    Implementing  Certify    

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Corporate Credit Card Feed The ability to integrate corporate credit card transactions into a company’s expense management processes is one of the most sought after features in an automated expense management solution. An automated corporate credit card data feed allows a company to save vast amounts of time on the accounting side due to efficient reporting and reconciliation efforts, while removing manual data entry requirements for employees. In a manual setting, employees receive a monthly credit card statement, manually input the data into their spreadsheet expense report, match the data with their paper receipt and code the transactions to the appropriate general ledger codes and cost centers. In an automated system, employees gain the ability to automatically create an expense report while the accountants gain the ability to quickly reconcile corporate card statements as well as increase expense policy compliance as corporate expense policies are applied to card transitions. In Certify’s automated system, transactions flow from financial institutions and corporate card providers into each user's Certify Wallet®, allowing users to easily create expense reports from imported expense data while adding receipt images, comments and supporting documentation. When an employee inputs a receipt that matches the credit card expense, the system will automatically match the transaction to the receipt. Having both the automated feed and a copy of the receipt helps eliminate inaccurate data and ensures IRS compliance for expense reimbursement. Certify’s corporate credit card system integrates with all major credit card providers including American Express, Visa, Discover and MasterCard as well as all issuing banks.

Workflow Routing & Approval Within a paper-based expense management process, managers often end up with stacks of paper expense reports on their desk waiting for approval. Once approved, Accounting may file the report in a filing cabinet or it may be placed in the other overwhelming stacks of paper pilling up on their desks. Using a web-based expense reporting system, managers never have to worry about stacks of paper expenses again. With web-based software, users have the luxury of keeping all expense management online. In systems such as Certify, working expense reports and receipts are kept in the safety of the users online account, while past expense reports are archived and available online for immediate access. All reports are kept in one online location, allowing users to keep a documented path of approvals. A documented process for submission, and a workflow path for approvals, is vital for the finance department to ensure reports are reviewed and properly approved while employees are reimbursed accurately. With a paper based system, the process for documenting expense approvals can become clouded as they are passed up the chain of command for approval. With an online system, all past and future reports, receipt’s and approval processes will be documented and kept for safe keeping in one single location.

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1. Smart Phone capture 2. Other camera phone capture 3. Upload through a web

browser 4. Fax a copy of the receipt 5. Scan the receipt 6. Live desktop uploads 7. Email a receipt 8. SMS text message the

expense 9. Credit card feeds 10. Import data using copy and

paste  

 

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Take Your Expenses Anywhere One of the greatest benefits of an online expense management solution is its mobility. An online-based system is available to users from any location at any time. Many of those who complete corporate expense reports do so on a monthly basis, keeping track of all paper receipts for 30 days or more, ultimately resulting in lost receipts and insufficient expense data. Once the end of the month rolls around and it is time to fill out an expense report, employees have to first locate the latest version of the expense report template spreadsheet, and then spend hours of their day completing the form, scanning or faxing receipts, and mailing the expense report to their boss for review. In an online, automated system, employees can capture their expenses on the go and streamline their expense report creation and submission process in a matter of minutes. No matter the location, traveling on a plane, dining with a customer, or traveling out of the country, employees can manage their expenses. Many expense management service providers offer a mobile application that allow for receipt capture to begin the expense reporting process from any location where there is WIFI access. The Certify Mobile application allows users to begin their expense management processes with or without WIFI access. Eliminate Lost Paper Receipts Keeping track of dozens of paper receipts that have been stuffed into a wallet, briefcase or pocket can be a difficult task. With an automated system, employees no longer need to keep stacks of paper receipts for future reimbursements. Using the Certify Mobile application, users can take a photo of a receipt and sync the data with their online account, streamlining the expense reporting process. Instantly, a picture of the receipt is stored in the user’s “Certify Wallet” and remains ready for future use to be used in their expense report. As soon as the user is handed a paper receipt, they can capture a picture of the receipt and store the information within their smart phone, therefore eliminating the need for a paper receipt. According to a recent Certify report, 67% of companies found receipt capture and the mobile application the most important feature of Certify.

 

11  Ways  To  Input  an  Expense  Into  Certify    8  

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About Certify Certify, LLC, is an online travel and expense management company that provides expense report and travel booking solutions to corporations and individuals. The company provides a true SaaS on-demand travel and expense management solution which is easy to use, quick to deploy and affordably priced for clients of all sizes. Founded in 2008, and headquartered in Portland, Maine, Certify is financed by the founding team and a group of angel investors. For more information about Certify please call 207.773.6100 or visit http://www.Certify.com. References *Statistics were complied based on a client survey Certify distributed to all account managers. Clients were asked a series of 10 questions relating to expense management and their experience with Certify. The survey was conducted in February of 2012 with respondents from 80 companies with users both nationally and internationally. 1. Christopher J. Dwyerm Aberdeen Group, March 2011. Expense Management for a New Decade.

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