For anyone who’s ever filed an expense report, you know. It’s a time of unparalleled stress. It starts with you and your team working hard to hit goals and benchmarks. You’re in the thick of it, buried in work, and then it happens. You remember those stupid expense reports.
You drop everything to start working on your expense report, only to realize you need all of those receipts from your recent travel. Suddenly you’re consumed by a frenzied panic. Not only have you dropped all of your actual work to do something tedious and brain-breakingly frustrating, but now you have to figure out what you did with all those receipts to prove you actually made the purchases you say you did.
You scramble and manage to get everything put together, but now it’s 10 to 5:00 on a Friday, and as you hand in your (almost) late report, the finance guy glowers at you. All you’ve done is successfully pass the burden to someone else, just before quitting time. Your shoulders slump, and you walk away in shame, knowing that you’ll have to do it all over again in 30 days.
If you’ve experienced this, you’re not alone. Expense reports aren’t just something your team hates dealing with. The reports are also a considerable time sink and a significant cost. Today, we’ll take a look at just how much expense reports are costing your business, and then discuss what can be done about them (spoiler: they don’t have to be a harbinger of doom).
What expense reports cost
Let’s take an average (hypothetical) company to get peek at how much it can cost to file expense reports. You can use the same math to get a rough cost for what your own company may be spending each year filing expense reports.
For our company, let’s assume there are 100 employees. According to this report on average, 20% of employees will file expense reports. And each of those expense report filers will file 2 reports on average per month. So for our sample company that’s 20 employees who file expense reports. That works out to 480 expense reports filed per year. That same report also found that the average expense report costs $38.72 to file, if there are no mistakes made. But guess what, 19% of expense reports have errors and take additional time to fix.
All said and done, our example company is filing 480 expense reports in an average year, at a costs of $38.72/report for a grand total of $18,500. Remember, that’s just the cost of filing expense reports.
Then there’s the “hard cost” of just having an expense management software. These run about $20 per user per month. You’re talking about an extra $4,800 per year for software that your employees hate using.
This company of 100 employees is spending at least $23,000 per year filing expense reports. And that’s assuming error-free expense reports, and that only 20% of your employees ever file reports. Try the math for your company.
Divvy eliminates the need for expense reports
With Divvy, you can say goodbye to manual expense reports forever. Gone are the days of tracking down receipts and interrupting your busy workflow to file a stupid expense report. With Divvy’s smart card, you just spend. Transactions come into the app immediately, so everything is tracked by you and your finance team in real-time.
The finance team can still collect the info they need (receipts, categorization, etc.). The human element is no longer a factor, as everything is done automatically. This virtually eliminates the risk of errors in reports and the risk of fraud. And on top of all of that, Divvy is an expense report app that’s free to use.
In short, Divvy can save you the time, the money, and the headache that comes with expense reports, with a tool that’s completely free. So reach out to us for a quick demo, and we’ll show you how Divvy can help your company spend smarter.