Recording and processing expenses is a vexing problem in all companies and administrations. The common denominator: expense administration keeps employees from doing their actual work. Nevertheless, they are still needed - the Excel templates, the original paper receipts, the cash advance statements. All clearly regulated in expense regulations, authorised by tax authorities in a wide variety of ways. The cloud solution that makes everything easier already exists. But does it deliver what it promises?
Reinventing the process
But if you look beyond the horizon of expense reporting, it becomes clear that the expense process is about much more. Expenses are not usually incurred in your own office, but on the road. So why not incorporate the geographical component into the process - for example, by planning the journey and recording the resulting data on the move? But there's more: there is always a business partner on the other side of the expense receipt - be it SBB or another transport company, airlines, hotels or restaurants. And these are often recurring business partners. Why not utilise synergies here too? For example, by integrating these business partners electronically - both before and after the service has been provided.
The expense process in the cloud
New applications from the cloud enable a holistic view of the expense process and the use of synergies through Digitization. A new vision becomes tangible: Recording expenses ad hoc and on site, around the globe and mobile via app. Lunch is recorded directly in the restaurant and the hotel bill is automatically included in the expense report at checkout. The finalised expense report is sent at the airport before the return flight. Supervisors also receive a mobile push notification for approval via a workflow. The receipts can be viewed as a photograph at the click of a button. The digital connection to credit card companies also helps to ensure compliance: If the business credit card is used, the expense appears automatically in the expense report - it cannot be cancelled. This creates transparency.
Employees and managers no longer have any additional work the day after the trip. Conversion rates are automatically taken into account by online conversion platforms on the date of the expense. Google Maps integration is available for journeys by private or company vehicle: Mileage claims are thus mapped realistically.
With these options, companies and administrations can effectively prevent ambiguities and irregularities in expense reports without a great deal of additional effort and at the same time significantly reduce the workload for employees.
Expense regulations and compliance take centre stage
In the course of optimising expense processes, the focus is on expense regulations. Switzerland's liberal legislation allows a wide range of options to be realised. Does it really make sense to use forty different expense types? What should be achieved? Does an authorisation workflow that involves four positions really provide greater security? How much has been reimbursed per lunch on average in recent years - does a flat rate make sense? But does it make sense not to reclaim VAT on this amount?
Basically, what is determined using logical rules can also be done by an automated system. The primary aim is not to prevent fraud - rather, the authorising body should be able to assume that everything that is pending approval complies with the regulations. This is exactly what "state of the art" systems from the cloud, such as the Concur solution from SAP .
The big question of integration
A cloud solution like Concur can work with any peripheral system. Employee data is imported either via flat file and SFTP or directly via a web API. The data source plays a subordinate role as long as the import file supplied corresponds to the required format.
The expense postings are usually transferred to a finance and payroll system. Posting data is written to an SFTP server via a flat file and can be processed from there by any peripheral system. If the peripheral systems are also from the SAP family, the process becomes even simpler, as SAP is currently working on integrated standard interfaces for its own products.
Cloud also means "big data"
The large amount of information recorded in an expense tool can be used to gain important insights into spending behaviour in reporting. These can serve as solid arguments for the purchasing department during the next price negotiations. E-invoices are imported into the system and processed directly with the corresponding VAT rates. In addition, employees are made aware of special circumstances by setting skilful "audit rules" during the recording process.
If you take a closer look at the processes involved, you will discover small and large optimisation opportunities everywhere. For example, an integration into travel management that includes specifically agreed hotel and flight rates and advises employees to book with the right provider. Or giving employees only preferred hotels to choose from when booking a room.
If companies or administrations have not yet considered a cloud-based expense solution, they should do so. Data protection concerns should be taken seriously, but can be mitigated by choosing the right cloud partner and drafting an appropriate contract. The growing number of companies taking advantage of Digitization is impressive proof of this.
Author
Simon Wespi
Management