No one likes manual expense reports. The finance team hates them because it means endless processing and scouring for errors and fraud. Everyone else hates them because they take so long to fill out, and you have to track down receipts. Management hates them even more because they’re basically flying blind without knowing how much money has been spent in a given month until way after the fact.
You’re wasting resources on time-consuming manual reporting
Most people don’t like tedious, repetitive work, especially when they feel the work is pointless or it will have to be repeated on a regular basis. Expense reporting checks all of those boxes. It takes time for employees to fill out and file the report, and even more time for finance to process the report. Errors and fraud only complicate things further. In the end, everyone winds up trying to do the least possible that they can get away with, only to repeat the process in a month.
According to this research, every month an average of 20% of employees file an expense report. Assuming there are 100 employees in the company, that makes only 20 employees filing reports, who will each file an average of two reports a month. That adds up to 480 expense reports per year, and with an estimated average cost of $38.72 for each report, that means you’d have to have a budget of at least $18,500 dollars just for the time it takes to manually file expense reports. But it doesn’t just end there—the “hard cost” of having expense management software runs about $20 per user a month, which adds an extra $4,800 per year for software your own employees hate using. Thus a company of 100 employees ends up forking over $23,000 a year just for filing manual expense reports. Is that really a cost you can justify when Divvy offers expense reporting for free?
You’re killing yourself over the risks and costliness of manual expense reporting
Management’s not much of a fan of the process, either. Maybe it’s difficult for them to see how much it’s costing them because it’s all “soft costs”, and adding an expense management tool is a hard cost (unless you use Divvy). Plus, all that time spent is a serious opportunity cost. It’s time away from mission-critical activities, and it adds up fast.
It costs even more when reporting errors or fraud come into play, especially the latter since fraud can go on for years without being noticed. Depending on the size of the company, it can cost your business hundreds of thousands of dollars in just a handful of years.
You’re constantly “late to the party” with manual expense reporting
Perhaps worst of all, traditional expense reporting gives you insight into your finances that are at least a month old. Not having real-time information means that your organization is left to react to spending rather than proactively controlling your spending. Divvy can help by giving you real-time spend information. That means your finance team can see your spend right now, rather than waiting 30+ days for everyone to get their expense reports in
Divvy is here to automate your expense reports and simplify your finance management. Our easy-to-use expense report app lets you track individual spending in real-time, so you can kiss those tiresome manual expense reports goodbye. That’s right—we do the expense report for you, while also saving you hard costs. With our free app, you can watch your business saving money as soon as you start with Divvy. So go ahead, give us a try, and see how you can finally bring your expense management into the future by letting us do it for you.