Expense Reporting Still a Trial for Small Businesses
The majority of SMBs surveyed said they have corporate travel policies in place, but expressed the need for flexibility in booking choices.Small and midsize business (SMB) expense management solutions lean heavily on manual methods that contradict employee needs and policies, as well as compromise overall profitability, according to a survey of more than 200 SMB financial decision makers by expense management solutions specialist Concur. Seven out of 10 SMBs surveyed said they do not currently use expense management software, instead continuing to use a combination of expense methods: 38 percent rely on paper-based submissions, 26 percent use corporate cards and 23 percent use Excel. "Often, there is a general lack of awareness around the importance of implementing a strategy to track expenses," Jerame Thurik, chief marketing officer for Concur, told eWEEK. "Almost half of our SMB respondents think having an expense management strategy is just not a big enough issue, while about four out of 10 say Excel is sufficient." Additionally, businesses are worried about the cost to automate this process—whether this is the cost of new software, the cost of the implementation project or the cost of deploying resources to manage the project, Thurik said.
"What they often don't think about is the longer-term benefits an automated expense management system can save them," he said. "Research shows it can decrease the cost of expense claim transactions by 75 percent or more and reduce the time to process expenses by 35 percent."