5 Reasons to Choose Expense Reimbursement Automation (And Leave Excel Behind)

We’ve all heard the adage: “If it ain’t broke, don’t fix it.” For businesses that still incorporate manual tools like Microsoft Excel spreadsheets into their expense reimbursement processes, that old cliche might seem like a good enough reason for sticking with what they know. Sure, there are other, more high-tech options, like solutions for expense reimbursement automation, but…

Why take the time and energy to shift away from something with which your team is familiar? Why change the processes and workarounds you’ve created? If your business is already accustomed to using manual data entry for reimbursement, you might ask, then isn’t Excel “good enough?” 

The honest answer is an emphatic no, and in this article we’ll explain why. We’ll also discuss the finer points of expense reimbursement automation, and how some smart software upgrades can help your organization take travel and expense management to the next level. 

The Traditional Approach: Using Excel and Manual Processes

In the context of expense management, Excel is normally utilized for keeping manual-entry expense spreadsheets. For example, for mileage reimbursement, employees might be asked to track mileage in a spreadsheet, which is then shared with managers and supervisors via file-sharing or email. Relevant receipts are either printed or scanned, and submitted alongside spreadsheet data. 

The spreadsheet way of managing reimbursement comes with some obvious drawbacks; the increased overhead, the required time spent entering and reviewing data, the lack of organization…Well, we’ll get more into the negatives below. 

But many companies persist with Excel. It offers familiarity, relative ease of use, and a relatively low upfront cost. Because of its reputation as an old tried-and-true method of recordkeeping, those businesses might think that Excel is good enough. 

Why Isn’t Excel Good Enough? 

Let us count the ways. (Spoiler alert: There’s five). 

1. Expense

Excel is a manual tool for recording and sharing information…not for intuitive reimbursement processes. That naturally means that using Excel for expense reimbursement requires a lot of manpower. Think about the hours needed to create, review, and approve reports; the costs for paper, printing and postage; the time required for reconciliation and reimbursement; and the costs to archive expense reports. Most companies don’t know the full extent of these costs. It’s likely they don’t want to know. 

2. Errors 

It’s been estimated that about 88 percent of spreadsheets contain errors, and it’s no wonder why: Creators of Excel spreadsheets have very little control over who can edit formula cells. The more complex the model is, the greater potential for human error. Besides, manual data entry is rife with the opportunity for error. One small instance of mistyped or mislabeled data could spell big trouble. 

When mistakes are detected, they have to be remedied, and prevented from happening again, a tedious and time-consuming process. And if those mistakes aren’t detected by manual review processes, they could lead to inaccurate reimbursement payments

Getting a reputation for incorrectly reimbursing employees isn’t great for worker retention, and it’s not great for keeping your organization out of regulatory, legal, or financial trouble, either. In order for business mileage reimbursement to stay accountable, aka nontaxable, the IRS requires thorough mileage logs containing accurate data. An organization’s error-riddled, disorganized spreadsheets might not make the cut. 

3. Fraud

In its 2024 Report to the Nations, the Association of Certified Fraud Examiners reported that organizations lose 5 percent of revenues each year to fraud. That same report also noted that almost 90% of reported fraud involved misappropriation of assets, and about 13% of that involved expense reimbursement fraud. 

Spreadsheets don’t make it particularly easy to catch and isolate instances of fraud, but they do make it easy for bad actors to enter inflated, invented, or duplicate data in hopes of higher reimbursement payments. If your business wants to fend off fraud (and hopefully, you do), Excel isn’t going to cut it. 

4. Security

The inherent security issues posed by email have existed since AOL – so, basically the stone  age – and since then, that danger has only increased. Sharing spreadsheets via email makes them vulnerable to unauthorized access and alteration. Password-protected sheets and locked cells don’t present any real defense. And here’s the thing about an email: Once it’s fallen into the wrong hands, it can be forwarded to anyone, anywhere. 

Poor security coverage for reimbursement workflows is risky for an organization, and it’s not great for that company’s customers, either. Consider businesses in the home health care fields that deal with clients’ protected health information, or PHI, every day. Keeping that information in reimbursement spreadsheets without proper security isn’t just poor expense management, it’s a possible HIPAA violation waiting to happen. 

5. Visibility 

Excel can help a small business track expenses, but it can’t link receipts or images with expense line items. It can’t integrate with corporate and accounting systems. It can’t provide complete availability and accessibility of expense data. It exposes organizations to administrative reporting processes that are subject to human error. 

Excel also seriously reduces visibility through its lack of organization. Spreadsheets as a method of recording and storing reimbursement information are prone to clutter, inconsistent formatting between documents, and overlapping information. Disorganized systems make it that much harder for businesses to find and correct mistakes, perform audits, and conduct analysis of employees’ reporting habits. 

You Deserve an Upgrade

While it may seem like a low-cost, low-effort option on its face, using Excel to manage T&E is inefficient, risky, and quite literally more trouble than it’s worth. This might be a sign that it’s time for your business to seriously consider switching to expense reimbursement automation.

As technology quickly marches on, more and more businesses with mobile or remote workers are opting for software solutions, letting automation take over for spreadsheets or pen-and-paper mileage logs. As the name suggests, expense reimbursement automation completely automates reimbursement workflows, taking on the responsibility of tracking, calculating, and recording expenses.

For one thing, this will give your hardworking employees more time to actually focus on doing their jobs. For another, removing manual data entry from the equation immediately increases accuracy, while seriously reducing the margin for error. Expense reimbursement automation systems also offer a high level of customization and centralization, helping businesses optimize time-saving and boost efficiency. 

What Organizations Should be Looking for in a Reimbursement System

When considering possible expense reimbursement automation options for your business, here are some features to be on the lookout for.

Streamlined Workflows

Something that makes manual processes so fallible is that if one step in the workflow falls through, it can bring the entire thing to a screeching halt. Worthwhile expense reimbursement automation solutions offer multi-step, multi-personnel workflows that reduce the risk of stops, slowdowns, and bottlenecks. 

Mobility

If your employees are constantly on-the-go, their reimbursement software should be too! Look for T&E management solutions that emphasize mobility and portability, such as systems with a corresponding mobile app. 

Reporting

Expense reimbursement automation makes reporting easier, faster and more accurate. The right software solution should also be able to provide data on employee reports in real time, making it easier to spot trends in employee behavior. Reimbursement automation also allows users to flag potentially problematic behavior, such as duplicate reporting, making it harder for errors and fraud to pass unnoticed. 

Scalability

A massive benefit of automated solutions for managing expenses is the higher level of scalability. Look for adaptable options that easily scale to meet your business exactly where it’s at. 

Customization

Every organization is a little bit different, and the best expense management solutions recognize that. The right software for your business should offer a high level of customization, offering a seamless transition with the systems your organization already has in place. 

Record Storage

Organized record-keeping is absolutely crucial for efficient travel and expense management. The best expense management systems feature data integration with centralized storage, keeping important information like expense reports and mileage logs secure and well-organized. 

Expense Reimbursement Automation Made Simple with CompanyMileage

At CompanyMileage, we’re not interested in “good enough.” We’re a little more invested in using expense reimbursement automation to bring businesses the best travel and expense management processes possible. 

SureMileage, our mileage reimbursement software, reimagines reimbursement using our unique point-to-point calculation method. Employees simply enter the starting point and destination of each work-related trip, and the system automatically calculates the driving distance between them, and from there, expenses for mileage reimbursement. This method eliminates the need for mileage spreadsheets and odometer reading calculations for tracking and recording mileage, while guaranteeing that human errors – and ineligible mileage like commutes and personal trips – don’t make it into expense reports. 

SureMobile, our mobile app, lets employees enter trip data, compile and submit reports while on the go, right from their smartphones. Once submitted, those reports move through our automated reimbursement workflow, which CompanyMileage makes easily customizable to meet the unique needs and structure of your business. Our systems also integrate with all major accounting and approval software, guaranteeing fast, accurate reimbursements, every time. 

CompanyMileage has been known to save our clients up to 30%. To find out more about how, and what expense reimbursement automation can achieve for your organization, contact us for a demo today!