Despite financial challenges ongoing in the UK, many businesses will not reimburse Brits for work-related expenses. Over two-fifths admit that current employers will not pay them back for travel, food, parking and accommodation costs when on the job.
This alarming statistic was discovered by our new research looking at employee and employer relationships. As the cost-of-living crisis takes hold, the need for employees to be reimbursed for legitimate expenses cannot be ignored, and the processes for expenses should not be unnecessarily arduous. For businesses looking to modernise, revamping expenses starts with digital transformation.
Digitalisation of expenses
Employers must deliver slick processes and easy routes to claim. The same research found that over a third (37%) believe their time could be spent better when reporting expenses, with one in five (21%) feeling frustrated throughout the process, and one in ten (12%) left fatigued. Creating streamlined, digital processes will help remove barriers for employees looking to claim money back.
Many employees are monitoring their monthly costs more intently now, with cash flow in and out of their bank account. With bills, rent and living costs ongoing, having supplements to salary is key, especially when money is rightfully owed. In the age of the smartphone, and tech-based solutions, it’s surprising to see many employers still leaning on outmoded, legacy processes. This is something that needs to be remedied swiftly, and it can start with something as simple as an app.
Despite digital transformation ongoing in various departments of businesses, across sales, HR, payroll, client servicing and so on, expense processes are isolated in their resistance to change. Only 13% of employees have been offered the option of expense claiming via app technology. This proves that employers are missing digitalisation opportunities, with many employees feeling frustrated and annoyed by current expense forms.
The future of expenses
A digital fleet app solution brings two major benefits. The first one is operational, and it centres around getting a bird’s eye view of cash flow. An online portal gives you access to detailed reporting and invoices. It enables you to create and manage users in seconds. Taking transport expenses as an example, a fleet manager using a new technological billing system can simplify admin and improve resourcing, while also taking advantage of insight and reporting tools available. In the case of parking, many employers miss out on claiming the 20% VAT that is recoverable from off-street car parks, by failing to digitalise.
The second benefit ties back to productivity as motorists have quick and easy access to a payment solution. Looking back again at a fleet example, the right technological solution can help you reduce costs and improve efficiency with no more chasing receipts. It will also reduce the need for company credit cards, managing individual parking expenses or following up parking tickets. Users will spend less time on unnecessary bureaucracy, and that time saved can be channelled back into the business.
Simplification of expenses should be high on the priority list for business owners in the UK. Having an efficient process in place will help employees get the money their owed, secure it in a quick and easy way, and reduce headache on the side of account managers.