Travel and business are the associated parts. Journey made for the purpose of the business is called as Business travel. Travelling has become quite a common phenomenon in the business nowadays.
Business travels include the purposes and the task. This may differ from industry to industry, and below is the list of the general purposes of the business travels.
Amount paid to the employee for the business travel expenses are called as the Business Travel reimbursement. Journey expense reimbursements usually paid after producing the accurate bills, as well as the proofs. This is usually given as the separate cash reimbursements. The organization should pay back the travel claims made by the employee.
Travel claims and the reimbursement looks simple; but, processing them involves a lot of paperwork which is a process of burden. Below are the common challenges that occur while claiming and reimbursing the travel expenses.
Receipt management is always a challenge for both the employees as well as the employers. Travel claims loose accuracy without the receipts and the bills. Managing the receipts are the big challenge for the finance as well as the HR departments.
Payment approval hierarchy delays the payments which will affect the employer’s loyalty. This long claim cycle makes the reimbursement process tedious as well as time-consuming.
Physical bills, receipt management, missing bills and the mismatch reports combined with the approval systems make the reimbursement a time-consuming process. This will consume a lot of time for the finance as well as the HR department.
Travel claims are mostly payroll independent; this increases the burden of the finance department and increases the cost of the financial management.
Missed bills, as well as the mismatched reports always lead to lack of the visibility. Lack of visibility leads to wrong claims which prove to be expensive for the organizations
Claiming for the personal travels and expenses are the common type of the false claims. Employee commits these false claims while claiming the travel expenses.
To reduce the difficulties of claiming as well as reimbursing the travel expenses, companies should think of upgrading the technology. This should give a connecting link to the traveling employee as well as their activities.
Generally, companies conduct audit’s to reduce the issues of the false travel expense claims. This cannot become the source of truth to make the eligible claims.
Below are the solutions that can reduce the issues of travel claims and optimize the reimbursement process.