Spreadsheets are becoming obsolete in the modern age. Although they’re still useful for storing and viewing certain types of information, many companies are now turning to automated systems to handle their financial projections, payroll data and expenses.
If you’re considering this digital makeover for your company, here are eight further reasons why modern expense automation systems are more beneficial than traditional spreadsheets.
1. Automating your expenses will negate the monotony of entering mounds of data onto a spreadsheet. This will save precious manpower and time, thus saving money in the process. The system will be updated instantly and routinely, figuring out any complex data for you.
2. Mistakes will usually creep in somewhere when it comes to data entry – human error isn’t something we can completely avoid. Automated systems are updated digitally, preventing errors such as missed payments and delayed transactions that can become very costly indeed.
3. Some parts of manual data entry are time-consuming, for example, real-time currency conversion or extracting individual VAT figures. Automated expense software will contain specialised algorithms designed to calculate complex sums on your behalf.
4. Automation won’t just save money by reducing labour costs. Many of these expense systems use a pay-as-you-use formula, meaning you only spend when the system is in operation. In addition, studies show the likelihood of fraudulent activity decreases when automation systems are in use.
5. With data being updated automatically, the potential for disputes will diminish significantly. This could be from customers unhappy about a perceived lack of payment or in-house disputes over wages. With modern expense automation, the system will show figures accurately and ensure payments are made on time to avoid conflict.
6. Modern expense automation also guarantees your business complies with both internal and external regulations. If new legislation comes into force, the automated system can update itself to ensure you don’t fall victim to noncompliance fines.
7. Staff members can view all their relevant expenses information in one place and connect instantly on this platform. Interdepartmental relations will develop meaning that internal communication and transparency will improve significantly. You can also set a limit to expenses, i.e. a hotel allowance, and be notified if an employee exceeds this figure.
8. With a digital system you can take care of expenses via a smartphone or tablet, allowing you to deal with payment requests and view information when not at the office itself. Employees can also benefit from this, being able to submit their expenses whilst on-the-go and including photographic evidence of receipts/bills if required.
While you’re thinking about automating your financial procedures, you may also be interested in reading The Difference Between Revenues & Expenses.