As businesses expand their operations, they frequently confront an ongoing challenge of striking a balance between providing their workforce with access to resources and cost controls. Credit Card Expense Management is a critical component of this dynamic. A well-defined process will ensure employees utilize corporate credit cards for approved expenses while confirming timely and accurate documentation and support is received for valid business expenses.
As credit card usage is continuing to become a more prevalent payment method, ROSE has implemented enhanced best practices into Easby’s Credit Card Expense Management module. These best practices are designed to automate the reporting and coding of credit card transactions, simplify the collection of credit card receipts, ensure the timely review and approval of credit card transactions, ensure the timely payment of credit card bills and eliminate month-end closing delays as a result of the credit card coding and approval process.
The Importance of Streamlining Your Credit Card Expense Management
Maintaining an effective Credit Card Expense Management system is critical. Companies should ensure they maintain a proper expense management system.
1. Fostering Financial Control: A well-structured expense management process empowers businesses to maintain proper control over their expenses. Setting spending budgets and providing proper visibility into credit card usage as incurred are critical to preventing misuse of credit cards and the creation of unbudgeted business expenses or worse, personal usage.
2. Maintaining Compliance: Failure to properly document credit card expenses can create tax deduction and reimbursement issues downstream. These issues can lead to potential lost reimbursements, lost tax deductions, penalties and lost credibility. Implementing a credit card compliance program can help businesses maintain their compliance by streamlining and validating the collection and storage of essential expense documentation, making it easier to access for support purposes later. Keep in mind that while the IRS requires receipts for all expenses $75 and above, each firm should set its own threshold to ensure that expenses are proper and meet the business purpose.
3. Efficient Record Keeping: Maintaining a reliable credit card expense system allows organizations to establish an efficient and organized method for managing expenses. These expenses need to be recorded into the accounting records and compared to budgets routinely. Improving the ease of use of an expense reporting tool, improves utilization and reduces delays in cost reimbursement and accurate financial reporting.
Easby’s Strategic Advantage
Easby’s Credit Card Expense Management module offers a systematized process for managing credit card expenses. This ensures that supervisors and managers can efficiently oversee and approve expenses, enhancing overall financial control and improving recordkeeping and compliance.
1. Efficiency through AI-Based Predictive Coding
Easby analyzes historical transaction coding, significantly reducing the need for manual data entry by leveraging predictive coding. This AI-based skill references a cardholder’s past interactions with vendors to determine the appropriate dimensional coding. These dimensions include vendor, general ledger (GL), project, department, and class coding. These dimensions are looked at individually and together to better understand and predict a cardholder’s coding over time. Easby’s machine learning pairs its predictive coding function with a percentage confidence level, displaying the probability of an accurate prediction to the users in real time.
2. Daily Syncing and Updates
Unlike other systems that are retrospective and administratively burdensome, Easby synchronizes seamlessly with most credit card companies, providing daily information about credit card charges. Integrated into the Easby platform, this daily data synchronization provides management and cardholders visibility into their credit card expenses each day. This visibility allows for cardholders to stay on top of their coding and receipt attachments throughout the month while keeping management informed of activity.
3. Keep Your Workflow in Motion with Easby
Engineered to uphold a continuous progression, Easby automatically steers expense transactions through the expense process. Cardholders are granted a specific window following the end of the month to submit their receipts, a timeline enforced by the system. If a cardholder fails to submit their credit card report within the stipulated timeframe, Easby will escalate the expense assignment to the respective manager. Managers will then have time to validate the predictive coding and coordinate receipt collection from cardholders. Easby ultimately makes it easier for cardholders to validate coding and supporting documentation, including attaching receipts.
Leveraging Easby’s capabilities, cardholders and management enjoy a reduction in the manual workload, resulting in fewer keystrokes and minimal data entry requirements. With the system efficiently handling data entry, all users experience a significant reduction in backlogs, benefiting from an optimized process that effectively eliminates bottlenecks and increases the efficiency of an organization’s back office.
Gain more insights on the advantages of incorporating Easby into your back-office functions by scheduling an introductory call with Rose Financial Solutions. We look forward to speaking with you.