School Expense Automation
Education institutes usually share similar attributes to commercial organizations, like a large number of employees, dispersed teams, and controlled budgets.
However institutes expenses like travel and other expenses are funded by grants, and scholarships, which are controlled by different regulations.
This results in complexity of the expense reporting of institutions, which demand specialized solutions for complying with the grant regulations, along with other government related regulations.
As institutes grow in size, and expenses increase, challenges arise for the accounts team in controlling expenses.
Designing and enforcing policies for cost control, and compliance is important for schools, which is possible only through Expense Management Automation.
Drawbacks in Manual expense system:
Schools face several issues in Submitting, processing, and paying expenses. Here are few drawbacks in the present manual expense management system
- Paper-based process:
Manual reporting process usually works like maintaining receipts, spreadsheet creation, printing the same and adding receipts to the spreadsheet, and then forwarding the same to the finance department for approval.
This process at times proven to be cumbersome, and usually labour-intensive, wasting precious time and resources of the institution.
- Scope for Errors:
Manual processes usually prone to error, even a single wrong entry can have huge implications in the general ledger code, which may lead to serious consequences with the regulatory authorities.
- Reimbursement Delay for Travel expenses:
Inability in creating the list of expenses during travels often leads to delay in reimbursement of travel costs.
Sometimes this can actually frustrate the senior-most staff of the institutions like heads, teachers, and others who work outside of their home campuses.
- A chance for Fraud:
According to experts in the USA alone, every year manual reporting is entertaining a fraud of nearly $2.8 billion in losses.
Security can be assumed to be at stake, as it is impossible to track an employee who made manual input.
How Automation can be the savior?
Automating repetitive tasks is going to save tons of time and resources for any organization.
Especially for the schools that rely on loads of paper, and age-old solutions, that don’t coordinate with each other automation can be a game-changer that can increase efficiency.
Here are four major benefits of shifting towards an automated expense management system.
- Lower Costs:
A manual expense report usually involves a team of staff working on the task, wasting a lot of time and other resources.
Automated expense reporting on the other hand usually involves significantly less staff employed, that too only for data entry and reports sharing. This can help in reducing the maintenance cost of schools.
- Time is Money:
The manual process usually involves tracking each and every expense, followed by collecting and organizing receipts, generate an expense report, and then sharing the report with the accounts manager.
Reimbursements can be possible only when there is approval from the manager, which consumes a huge amount of time.
On the contrary automated expense, reporting makes, each and every attribute updated and shared in real-time with the respective stakeholders, making the approval process significantly faster.
- Better Accessibility:
Going digital ensures all the processes are executed fastly, and all the required info is available at your fingertips. Automated expense reporting can help in accessing and tracking expenses at any time.
Correction of mistakes in manual expense reporting is supposed to be a pain for the accounting teams.
Any mistake correction requires the team to wait till all the corrections are updated in the record, and is again approved by the manager. This usually consumes lots of time.
However automated process helps in correcting the mistakes in real-time, all the changes will be updated instantly and can be approved in a matter of minutes.
An automated expense management system ensures credibility and security in your existing accounting system.
Edecofy’s smart school expense automation system can help your institute to reap the benefits of automation. Looking for more details? Please visit: https://www.edecofy.com or you can also reach us at email@example.com