RIP employee reimbursements: Why it's an outdated process

Rest in peace, manual reimbursement process. Like a zombie, you've been staggering on well past your expiration date. But now it's time to put this old, decaying process to rest and usher in a new era of efficiency and ease. No more resurrecting old receipts or trying to remember what that $20 charge on your business credit card was for.And employees, rejoice! No more waiting around for your reimbursement to rise from the grave. With prepaid corporate cards, the reimbursement process is as dead as a doornail - and we're not mourning its passing.

In today's fast-paced, digital world, the manual reimbursement process is becoming increasingly outdated and inefficient. In fact, we’d argue that it’s no longer needed at all.

Here's 10 reasons why this traditional method of compensating employees for business-related expenses is no longer viable:

1. Employee frustration: Employees may find the manual reimbursement process cumbersome and frustrating, impacting overall morale and job satisfaction.
   
   
2. Time-consuming process: Manually processing expense reimbursements can be time-consuming for both employees and finance teams, leading to delays in reimbursement.
   
   
3. Human error: Manual data entry increases the likelihood of errors, such as miscalculations or inputting incorrect information, which can result in inaccurate reimbursements.
   
   
4. Lost receipts: Paper receipts can easily be lost, making it challenging for employees to provide necessary documentation for their expenses.
   
   
5. Delayed reimbursements: The manual approval process and reliance on physical paperwork may cause delays in reimbursing employees, affecting their satisfaction and financial well-being.
   
   
6. Policy compliance issues: Ensuring that expenses comply with company policies can be more challenging without automated systems, leading to potential policy violations.
   
   
7. Audit challenges: In the absence of a digital trail, manual processes make it difficult to track and audit expenses, increasing the risk of financial discrepancies.
   
   
8. Inefficiency and productivity loss: Spending time on manual paperwork distracts both employees and finance teams from more strategic tasks, reducing overall efficiency and productivity.
   
   
9. Lack of visibility: Manual systems may lack real-time visibility into expenses, making it challenging for management to have a clear overview of company spending.
   
   
10. Paper waste: A reliance on physical receipts and documentation contributes to unnecessary paper waste, which is not environmentally friendly.
    
    
11. Security concerns: Physical documents are more prone to security risks, including theft or loss, potentially exposing sensitive employee and company information.
    
    
12. Difficulty in scaling: Manual reimbursement processes become increasingly challenging to manage as a company grows, requiring more resources and time.

So, what’s the alternative? Prepaid corporate cards.

Prepaid corporate cards like those offered by Budgetly completely bypass the reimbursement process.

The top benefits are:

• Efficiency - eliminating the need for employees to spend their own money and wait for reimbursement.
  
  
• Empowerment - Employees feel trusted and valued, and are empowered to do their work, without sacrificing control over budgets.
  
  
• Accuracy & Control - Reduced chance of human error and policy compliance issues, as they can be set with preset budgets.
  
  
• Control - Improved visibility into company spending, as transactions can be tracked in real time.
  

To learn more about how you can manage expenses with budget management solutions like Budgetly, download our eBook! Or, you can watch this 10-minute demo.