No matter what the size of your business is, managing receipts by using traditional methods is a tedious and time-consuming process. It often leads to delay in expenses reimbursed.
This process has caused numerous problems which can affect the productivity of the business as well as team members. Despite all of the troubles and problems, managing receipts manually is still the standard process that is followed by many companies all around the globe.
Today, more than 40% of organizations are tracking expenses and generating reports using manual processes, which puts a lot of pressure on the employees to give the correct output. The manual process can be prone to human errors and ends up with inaccurate data entry.
According to the study conducted by Global Business Travel Association (GBTA), for processing one expense report manually, a business needs to bear a cost of around $58. It simply means that if you are still using the manual method of receipt management, you are spending tons of dollars to try to save money. And if that system doesn’t work? Well, you end up losing even more money.
Why switch from traditional receipt management?
Even though manual receipt management is common practice. However, it comes with its downfall.
Let’s looks at some of the common issues which are generally faced by small business,
In a continuous process of reporting, accountants need to keep track and manage a variety of invoices which makes it difficult. Additionally, it is confusing combined with the chance of committing an error increases drastically.
A cloud-based receipt scanner removes the need for manual data entry and manual supervision and allows you to easily manage receipts. It simplifies expense creation by using OCR and machining learning technology to extract data from a scanned receipt and create expense automatically, also directly integrating with the cloud accounting system, hence moving towards code-less accounting.
Manually managing invoices can easily become a headache as they often need to be cross-referred for validation. This can take a lot of time as it is a manual process to validate invoices along with purchase orders. As a result, several invoices can be left in circulation which can cause chaos and delays.
To avoid one of the major limitations of manual receipt management, firms are increasingly moving towards online receipt management. These apps are not only cost-effective but also save a lot of time. Statistical data reveals that when a business switches to a receipt scanner app, processing cost is reduced to approximately 63%.
- Security concerns
Manual management of receipts does not provide assurance on data security due to which receipts can easily get misplaced or mishandled.
On the other hand, a cloud-based receipt scanner app includes carefully articulated policies, procedures, and technology to protect the data and infrastructure. These measures ensure the protection of data and privacy which increases the comfort and experience of the user.
- High-Cost Maintenance
In many organizations, invoices need to go through manual approvals in departments before becoming valid expenses, this can cost a business time, money, and efforts.
To maximize efficiency and save both time and money you can use a receipt management mobile app for streamlining expense reporting and improving reimbursement, taking care of approvals built in the receipt management app.
Now you can imagine how much hard work and efforts are there in managing receipts and invoices manually. That’s the reason why a receipt scanner app is important for your business.
A receipt scanner app like MMC Receipt which is easily integrated with FreshBooks Accounting software and soon to be Integrated with ZAR money, Quickbooks Online, and Xero is definitely a game-changer that can lead to increase productivity of your business. Your team member can easily and quickly capture receipts and submit their expense reports.
You and your team do not have to go through the painful and tedious process of reporting and entering every single invoice manually. Instead, get a receipt scanner mobile app like MMC Receipt which can fulfill your business needs which can save a significant amount of processing time for small business owners and their bookkeepers.
Try MMC Receipt today, to streamline your expense management and improve your team member’s productivity.