The collective toll of an inefficient corporate expense management system equates to an average annual loss of 13,206 AED per year for at least one-third of the working population (35%), a fact often overlooked by both companies and employees.
From an employer's perspective, inaccurately filed expenses present significant challenges, particularly for SMEs, which lack the resources and time to address administrative bottlenecks effectively. Lost receipts, input errors, and erroneous submissions pose significant challenges for businesses, diverting attention away from growth and scalability efforts. This diversion of attention ultimately hampers productivity and impedes business success.
A significant source of frustration with expense management stems from the time investment required, with over one in four respondents (26%) spending approximately one hour per month on expense-related tasks. For 7% of individuals, this time commitment exceeds three hours monthly. Receipt management (26%), manual expense reporting (25%), and expense approvals (22%) are among the primary hurdles encountered. Consequently, many individuals opt to forego submitting their expenses, leading to a cumulative loss of revenue each month.
Despite occasional lapses in expense submission, corporate spending remains consistent for the majority of UAE employees. Typical expenditure categories include transportation and taxis (15%), hotels and accommodation (13%), and flights (12%). Reimbursement methods vary, with 29% using personal funds, 25% utilizing company petty cash, and an additional 25% utilizing company credit cards.
Although a majority (51%) claim to submit expenses frequently, the process is often perceived as complex. On average, two individuals (45% of respondents) are involved in approving expenses, with departments such as Finance and Accounting, Office Management, and Human Resources frequently involved.
While employees enjoy a degree of autonomy in spending, with 27% allowed to spend up to 500 AED before seeking approval and 20% permitted up to 5,000 AED without prior consent, expense management remains a laborious task for many.
In addressing these challenges, respondents express a clear preference for user-friendly expense management solutions. 39% advocate for an intuitive app for capturing expenses instantly, 32% seek streamlined methods for uploading expenses, and 16% endorse tools linked to bank accounts for automatic receipt tracking.
Ayham Gorani, Co-Founder of Pemo, emphasizes the need for simplifying expense management systems and empowering employees through initiatives such as corporate cards to foster a culture of responsible spending.
Valerie Konde, Co-Founder of Pemo, underscores the significance of addressing challenges faced by SMEs, advocating for integrated spend management solutions that streamline processes and enhance transparency.
Gorani believes that by digitalizing expense management systems and implementing automated approval workflows, businesses can achieve real-time visibility into corporate spending, benefiting all stakeholders.
In conclusion, by embracing digital transformation in expense management, businesses can mitigate the challenges associated with manual processes, enhance productivity, and foster a culture of financial responsibility, ultimately driving long-term success
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