Have you ever noticed that the more successful a business is, the more control it has over its corporate finances? Modern CFOs emphasise that corporate spending must be 100 per cent under control. Unfortunately, not every finance department has the tools to fulfil these requirements. Usually, they use outdated methodologies that, although they have a right to life, have many drawbacks. For the most part, old methods of expense management rely on a lot of human resources and are too time-consuming.
The main problems of corporate cost accounting
There is no need to explain why it is necessary to account and register all company expenses scrupulously. In brief, it is to optimise budgets, avoid unnecessary spending and prevent misuse of company finances. In most organisations, a specially trained employee controls and manages corporate finances. It means that there is always human error, and from time to time there can be critical problems with approving or recording payments. It also takes a lot of time for employees to enter all expense information correctly and generate the reports requested by management.
Ordinary employees who need to be reimbursed for corporate expenses incurred know that it is quite a lengthy process:
- They need to prove they made a necessary purchase for the company. To do this, they must come to the finance department and bring the relevant cheque, receipt or deed.
- They need to write an application for compensation.
- They have to wait a week or even more for the person responsible for accounting for the expenses to draw up all the necessary documents and approve them by the top management.
Often, the responsible managers wait until the end of the month to record all expenses at once, which extends the time after which they will be reimbursed.
In this age of computer technology, accounting for corporate expenses doesn’t have to be so outdated and time-consuming. All this paperwork harms the business as a whole and leads to the following consequences:
● Lack of transparency in financial management. Since the verification of expenses can take weeks, the reliability of the final result of such verification is highly questionable;
● Need for control over corporate expenses. Since payments are processed after they are made, it is very difficult to prevent unnecessary spending and fraudulent actions;
● Increased accounting complexity. The bigger the company, the more payments need to be accounted for and the longer the process of processing and accounting;
● Errors. When accounting for a large number of payments is handled by a person, there is an increased chance of errors due to human error.
The human factor is the main reason for all the negative consequences of using old methods of corporate finance accounting. To eliminate it, it is worth using the innovative payment solution Wallester Business offers. Thanks to this multifunctional platform, any company can improve its corporate finance management and eliminate all the problems caused by the use of old methods.
How to control 100% of corporate expenses?
Only using innovative technologies in modern realities will optimise corporate finances and the process of managing them. This is an axiom not only for large companies but also for small and medium-sized businesses. The innovative solution from Wallester Business is suitable for companies from any industry and can integrate absolutely with any software already used by the client. Wallester Business has many useful features for managing corporate expenses.
Automated expense verification
Employees don’t have to wait weeks for their expense reports and reimbursements to be processed. All expenses are checked automatically. It saves time and allows for more efficient financial management. The employee does not pay their money for a corporate purchase and then ask for a refund but pays for it immediately with a corporate card. Depending on the employee’s status, they are limited to a certain amount on the card and prohibited from making certain purchases. If a purchase needs approval, the responsible employee is notified instantly. Approval or rejection of payment is done in real-time.
Not only physical cards but also virtual cards
Traditional banks take quite a long time to launch a corporate card project. With Wallester Business, corporate cards are issued almost instantly. Virtual cards can be created even for one-time payments. Cards can be issued for departments and even for individual projects. Budgets can be set separately for each card, and specific areas of expenditure can be set on them. A fixed amount can be put on such a card, preventing unnecessary spending.
The balance of corporate cards can be monitored online. It will avoid unpleasant surprises with budget overspending at the end of the month. Also, online control allows you to quickly reallocate the budget to redirect money to purchases necessary for the business. A positive aspect of using corporate cards for staff is that they don’t have to spend their money on the company.
Unified control system
Wallester Business provides a single platform for card issuance, corporate expense verification, and management. There is no need to install multiple software products or overload accounting programmes with data to record expenses. The Wallester Business platform systematises all information about issued cards and their expenses online. This greatly simplifies not only their accounting but also budget planning for the future. Automated accounting optimises the work of the finance department and generally increases business efficiency.
