When your organization already has the expense management system in place, then it does become easy to dismiss the criticism of the program instead of having a look at what needs to be done in order to change it. There are several major reasons as to why organizations fail while dealing with expense management system that could cloud your judgement on the essential aspect of your business.
Given below are some of the major reasons as to why organizations fail to deal with expense management system, optimizing the process or switching to another solution entirely saving your time and money.
My business organization does not need them:
Some of the business organizations continue to think that as their organization does not have too many employees and don’t do a lot of ordering, purchasing orders here are an unnecessary extra step when it comes purchasing process. Purchasing orders generally create a kind of legal contract between you and your supplier so that in case the supplier you have been dealing with fails to deliver on time that is been promised, you would here then have the proof of what you have ordered and when you have ordered. They would here also provide you with a paper trail of all your business dealings.
I have my spending in control, I don’t need their solution:
Online procurement solutions would here help the business organizations with much more than cutting costs and or keeping spending in check. These solutions here streamline the entire process of procure to pay software helping the organizations find gaps and fix them. They also help managers to analyse the past decisions making better future in the future.
Purchase orders being too complicated enough:
Unlike a relationship status on Facebook, purchase orders here never seem to be that complicated. Purchase order templates could be created online at a great ease if you have the required information say for example the company name and contact information kept the same. Information that varies such as the items bought could be easily edited at a great ease.
They are never compatible with the non-premise solutions:
Procurement solutions could be easily integrated with legacy on any premise applications or the third party applications. Online procurement solutions is also a feature as the add on solutions in SaaS which offers it to be a part of much more comprehensive solutions. The software provider here in most of the cases takes on the effort of integrating the existing applications with the e-procurement solution.
It’s too expensive to switch towards expense management system:
The point of expense management system here is not just too save your time and money, but even the time being spent by people processing expenses. And while there might be an upfront costs long terms savings would be worth it. By optimizing the right expense management solution you could cut down the major expenses within the organization reducing the overall level of debt, free up the capital and protecting your business from the credit risks.
Can playing the expenses supplement the employee’s salaries, tax free:
No, expense management can be made tax free but only when they meet up with the specific criteria. An employee here could deduct the expenses wholly exclusively and necessarily performing their duties. Below given are a few examples that would help you qualify and be a paid tax free: professional subscriptions, eye tests, accommodation, charitable donations, protective clothing and many more.
A new expense management system program would not help us control the expenses:
May be your business expenses are already pretty lean and though it sounds to be great, having a closer look at how the employees would pay for all their expenses would help you magnifying the existing problems and uncover the new and different ways to save their expenses. Prepaid business card solutions like the PEX cards would here again allow you to set spending rules for each and every card that you use at the gas pump but not at the restaurants.
It would not help us control our business expenses:
You could never manage things that you could never control. You have here established your T&E policies for a specific reason and that is to control your business expenses. But through proper restrictions and regulatory system managing the expenses of your business organization could be a daunting task, especially when you need to rely on your manager for an approval from his side.
So what other reasons would you like to add to the list above? And how have you been dealing with them. Do leave your thoughts and comments below.