Pluto is the fastest way to reimburse your employees

Collecting, storing, and otherwise managing receipts is essential to a well-oiled expense reporting machine. 

Each receipt serves as confirmation of payment processing between yourself and the customer or vendor. You also need expense and sales receipts to file taxes and maintain your peace of mind.

Unfortunately, while saying receipt management is easy, the whole process itself is daunting. Tracking hundreds, thousands, even millions of employee and customer receipts leaves loopholes for fraud and misreporting. 

Physical expense receipts are especially susceptible to being lost, damaged, or fading with time.

Fortunately, there’s a better way to do it: digital receipt management with Pluto.

• Automate more of the expense management process
• Reduce the risk of fraud and inaccuracies
• Create more efficient workflows and financial departments
• And overall streamline modern business operations

While you probably can’t eliminate 100% of paper receipts from your workday, you can still improve your process with an increasingly-digital footprint!

What is Receipt Management?

Receipt management is the process of collecting, tracking, and storing business receipts. This task is usually handled by internal finance teams. Their role involves collecting various receipts, tracking costs in accounting software, and storing these receipts for future reference. Additionally, they may need to manually sort each expense, depending on the system in place.

Why Do You Need It?

• A well-run receipt management protocol is crucial for businesses for several reasons:

1. Simplify Employee Reimbursement Programs: It aids in the smooth operation of reimbursement programs for employees.

2. Track and Report Tax Deductions: It's essential for accurately tracking and reporting tax deductions.

3. Provide Proof during Tax Audits: It serves as necessary documentation during tax audits.

4. Streamline Expense Reports and Budgets: Helps in making expense reports and budgeting more efficient.

5. Combat Internal Fraud and Inauthentic Chargebacks: Plays a key role in preventing fraud and false chargebacks within the company.

6. Avoid Repair or Replacement Costs for Items Under Warranty: Keeps track of receipts necessary for warranty claims, saving costs on repairs or replacements.

7. Calculate and Improve Long-Term Profitability: Receipt management is vital in calculating and enhancing the long-term profitability of a business.

Different types of receipt management systems are in use today, including those for printed receipts, e-receipts, and even handwritten receipts. This diversity can be challenging for businesses, as they need to follow multiple procedures to reconcile their books effectively.

Types of receipt management

Today, there are three basic ways to handle receipts directly:

• Manual receipt management involves handling, tracking, and storing paper receipts
• Digitization receipt management scans physical receipts to digitize the tracking process
• Digital-only receipt management is used for online or digitally generated receipts

While many businesses are moving toward digitization and digital-only receipts, some businesses are stuck in the dark ages. (The kind that involves typing physical receipt information into a digital spreadsheet.)  

And as we’ll see below, manual entry strategies come with some…problems.  

Difficulties of Manual Receipt Management

1. Easily Lost or Damaged Receipts

Perhaps the most obvious problem with physically tracking expense receipts is that there’s so much that can go wrong. Lost, damaged, or faded receipts make the business expense tracking process that much harder.

Even if the employee who spent the money doesn’t drop their receipt, it’s possible for paperwork to get lost on a desk somewhere. And if you need to find a receipt two years later? Better hope it was filed properly and hasn’t faded completely.  

2. Consumes Human Resources

Manual receipt management is an extremely hours-intensive process.

Your financial team has to collect invoices, type their data into your accounting software, and double-check their work. Then, they have to reconcile business expenses against company credit card statements and track down potential instances of fraud or misreporting.

Not only does this require a lot of time, but it also impacts employee productivity. Every hour an accountant spends tracking receipts is an hour of productivity lost elsewhere.

3. Leaves Room for Human Error

Aside from the time and human resource cost, manual receipt management presents the potential for human error. And unlike on the product line or in customer service, every reporting mistake risks an unfavorable tax audit.

Even the simplest receipt management and tracking process involves several steps from collection to reconciliation. Every stage is an opportunity for an employee to get distracted, mistype a name or number, or duplicate entries. In bigger cases, they might even duplicate a payment, costing you more money.

And even if you catch the mistakes before they’re submitted, that’s more human hours wasted double-checking and correcting completed work.

4. Increases Fraud and Misreporting Risk

The risk of fraud is higher in manual receipt management programs, and instances of fraud may be harder to detect. Types of fraud that commonly crop up in expense reporting include:

• Inflated claim amounts
• Claiming personal costs on the business’ dime
• Submitting expense reports twice
• Falsifying “proof” to claim for money that wasn’t spent

Unfortunately, manual receipt management makes these kinds of fraud more likely and difficult to catch. For example, if the employee who authenticates receipts is committing or permitting the fraud, it’s harder to detect until after you’ve lost money.

Over time, even small acts of fraud can have massive financial consequences.

5. Contributes to Employee Dissatisfaction

For many companies, employee reimbursement programs contribute both to the need for manual receipt management – and to employee dissatisfaction.

Think about it. In a modern, tech-savvy business world, why should employees have to pay out of pocket, ever? 

Virtual cards and online-based businesses have all but eliminated the need for an employee to front your expenses.

But if you’re still stuck doing manual receipt management, chances are, your employees are still submitting reimbursement tickets. (And grumbling about the time it takes to get paid back.)

And that’s not even touching on the frustration, tedium, and headaches manual receipt management programs cause your high-paid finance teams.  

6. Jacks Up Business Costs

Together, all these factors paint a picture of increased business costs.

The time and human resource cost to track, reconcile, and store receipts.

The human and financial cost of detecting and counteracting fraud.

Even the maintenance costs for your printer and filing cabinets.

Every dollar spent on manual receipt management is a dollar sucked from office parties, growth, or your bottom line.

Benefits of Digital Receipt Management

It’s easy to see the costs that manual receipt management impose. Fortunately, there’s a simple solution: digital receipt management.

In short, digital receipt management involves using digital copies of receipts in your expense reporting strategy. Digital smart receipts are easy – simply integrate them into your accounting software and let automation take you away.

But even physical sales receipts can be digitized, Pluto allows you to digitize your receipt very simply - through your phone. 

Incorporating such technology means that even paper receipts fold neatly into your overarching digital strategy.

And as you’ll see, the process comes with tons of benefits.

1. Increases Integration Potential

A massive benefit of digital tracking is the sheer integration potential. Most receipt management tools, from receipt scanning devices to receipt tracking software, easily mesh with your existing expense reports system.

From there, you can automate mindless tasks and set up occasional human checks to ensure the system works as intended.

2. Fewer Costly Errors

Another way that a digital receipt management program saves costs is by reducing employee errors. Digital receipts should meld seamlessly into your tracking system – no surprises there.

But even processing physical receipts is cheaper and easier.

With their mobile phones, employees can scan receipts and upload them instantly. From there, Pluto categorizes the information and adds it to the overall report.

While employees may spend a second filling in any blanks, increased automation greatly reduces the risk of input errors.

3. Reduces Risk of Fraud

Less human interference means your financial system is more resilient to fraudulent activities. Pluto improves speed and accuracy while digitizing the receipts.

That leaves fewer opportunities for fraudulent claims.

4. Reduces Clutter

Uploading physical receipts means less physical space is needed for storage. That can save you on storage costs and reduce desktop and file cabinet clutter.

And because everything’s digitally maintained, you’ll still meet or exceed your tax authority’s required financial record storage period. 

Not to mention, just finding your records will be easier than ever!

5. Easier Audits

No person or business enjoys tax season. But digital management makes the process at least a little easier. 

Because all of your information is stored online, it’s easier to access and export receipts as needed. 

When tax time or the dreaded audit comes around, your data will be well-organized and easily accessible.  

6. More Efficient Expense Reporting

Traditional receipt management is a costly, time-intensive, error-prone manual process that used to be necessary. With modern tools, businesses can streamline the entire financial structure of their organization.

No more lost receipts or worrying about fraud.

Less time spent inputting and double-checking data, and more time helping your business grow.

All these positive benefits will improve efficiency – and even bring smiles to your accountants’ faces.

7. Faster Reimbursements

Like using a virtual corporate card, digital receipt management speeds up the reimbursement process. 

Since everything is tracked and verified electronically, it’s easy to set up an automatic or streamlined reimbursement protocol.

8. Putting Your Eco-Friendly Foot Forward

Lastly, any step your business can take toward going paperless is good news for the environment. 

Cutting down fewer trees and reducing printer ink usage are laudable goals that can decrease your environmental footprint. 

Not only will you enjoy cost savings, but you’ll feel better about doing business in an increasingly eco-conscious world.

8 Tips for Efficient Receipt Management

Digitizing your receipt management strategy is just the first step toward expense report success. To ensure you’re operating at maximum efficiency, consider the following tips.

1. Use Pluto App

The first step is to get Pluto and start managing your spending digitally. 

While you’re moving toward digital efficiency, your vendors aren’t required to follow. Keeping the proper tech on hand ensures you can digitize any paper receipts that come your way.

Pluto allows you to take a picture of the receipt, upload it to your expense and just like that the reconciliation process is done!

2. Save Your Receipts

While you can set up secure digital folders to store all your digital originals and copies - Pluto does that for you! 

Just take a picture of the receipt, upload it to the app and that is it.  

3. Ensure High-Quality Digital Format Uploads

There’s no point in uploading and saving documents if you can’t read them. 

Before tossing your physical copies, make sure you can clearly read the essential information on each receipt. (Such as the company name, date, purchased item(s), and amount.)

4. Categorize Submitted Expenses

Take some time to categorize your expenses (most businesses do this in chronological order). Pluto helps you with that, but just make sure to check the right category so the reporting stays in top notch condition. 

5. Set Up a Simple Expense Report Strategy

Expense reporting is the backbone of any business’ financials. For prompt, complete reporting and tracking, ensure that you design a straightforward strategy. 

Same-day submissions, fewer Excel sheets, and faster reimbursement protocols will improve efficiency and attitudes. Better yet, invest in a quality expense and receipt management software.

Or even better - start with Pluto, we have a free package. It will allow you to completely digitize and control your spending, while keeping your reporting in the best possible shape. 

6. Establish Accountability

A top-notch expense reporting strategy only works if people use it.

To ensure your protocols are followed, emphasize and encourage accountability. Keep all managers and supervisors up-to-date with company spending and card policies and remind them to disseminate that information appropriately. Follow up with employee expenditures as needed.

7. Run Regular Internal Audits

Regular expense report audits help businesses track receipts fraud, clear up discrepancies, and streamline inefficiencies. 

Take time each month or quarter to check for fictitious or overblown expenses or troubles with your expense reporting strategy. 

Pluto allows you to run real-time reports at any given moment for any period of time.

8. Switch to Virtual Corporate Cards

Virtual corporate cards make managing receipt tracking even easier. Not only can you digitize the entire process end-to-end, but corporate p cards give you greater control over your expenditures and tracking.

Sure, you can’t prevent vendors from handing you physical receipts. But you can greatly minimize instances of employees walking in with a big stack of thermal paper to scan in.

Pluto offers unlimited virtual cards which will book all your expenses right into the dashboard!

Key Takeaways

• Proper receipt management is key to running a financially successful business.
• While manual receipt management reconciles physical copies, it’s increasingly unnecessary in an increasingly digital world.
• Digital receipt management simplifies the collection, reconciliation, and storage process.
• Digital tracking also reduces fraud potential, time and financial waste, and increases employee satisfaction.
• Digitizing your expense reports pairs nicely with digitizing your own payments with virtual corporate cards.

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Many companies require in-person meetings, site visits, or attending events. Whatever the business-related travel may be, fuel reimbursement comes into the picture.

What is Fuel Reimbursement?

In a nutshell, fuel reimbursement is when an employer reimburses you for the cost of fuel used for business purposes.

While other countries may consider this a travel expense or a mileage reimbursement, the UAE considers this a 'fuel reimbursement.'

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Why Did Reimbursing Travel Expenses Grow?

In a post-pandemic world, where many companies are going back to the norm of office work, it is common for travel reimbursement costs to increase.

The mileage reimbursement rate has risen with regular office hours, more in-person meetings, and less remote work. But that's not the only reason.

Due to the surge in fuel costs globally, it's no surprise that consumers are becoming more aware of their travel expenses.

The UAE alone has seen a significant spike of 74% in fuel prices and petrol prices over the last 7 months, indicating that reimbursing travel expenses grew.

Subsequently, UAE companies have seen a 38% increase in fuel reimbursements and travel reimbursement requests from their employees. Inflation alongside a post-pandemic world, fuel reimbursement expenses have become the most requested reimbursement category in the UAE.

A study by Bayzat has shown that fuel is among the most requested reimbursements category for UAE employees, with an increase of 18% in the average amount per reimbursement since January.

This indicates that companies and employees have spent more time managing and filing fuel reimbursement expenses. 

Unsurprisingly, the cost of average travel reimbursements has increased with the significant spike in fuel prices and petrol prices these past few months.

With Pluto's corporate cards, companies can wave goodbye to everyday fuel reimbursement expenses' pain points by issuing their employees fuel cards to keep track of their fuel expenses and travel reimbursement costs.

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Why Use Pluto Fuel Cards For Fuel Reimbursement?

There are many advantages to using Pluto fuel cards for business travel expenses:

Create unlimited fuel cards

Create and distribute as many virtual or physical fuel cards as needed for your employees, so you won't have to worry about travel expenses, mileage reimbursement requests, or having to reimburse employees.

Set limits on fuel cards

Create fuel cards for employees with daily, weekly, or monthly spending limits to keep track of employees' fuel expenses.

Track fuel expenses in real-time

It's essential to keep track of what is being spent and where. With Pluto, you can:

• Get notified as soon as a fuel expense is made so you know who spends what, where, and when.
• Keep track of average travel reimbursements' costs, travel expenses, and employee expenditure data to avoid going over budget on fuel expenses.

No more end-of-month expense reports on fuel!

Digitized receipt reconciliation

Whether your employees are using personal vehicles or company vehicles, they can simply make a transaction with their personal card, snap a picture of the receipt and upload it to the Pluto dashboard for fuel reimbursement.

Alternatively, UAE companies can issue their employees virtual or physical cards, and the receipt can be attached to the business expense by dragging and dropping it onto the Pluto dashboard.

No more searching through piles of paper receipts! 

Fill up your tank anywhere

Once you issue your UAE employees a virtual or physical fuel card, they can use it at any gas station in the UAE for business travel expenses.

While requested reimbursements for fuel expenses grew over five-fold over the past couple of years, there is a solution to make CFOs' and finance teams' lives easier; Pluto Card.

With Pluto, finance teams have an all-in-one integrated platform for fuel reimbursements, budget & spend control for business travel expenses, and fuel receipt reconciliation.

Fuel Reimbursement vs. Mileage Reimbursement

When looking for information about fuel reimbursement, another term that you may stumble on frequently is mileage reimbursement. While they are similar and sometimes interchangeable, they are not the same.

What is Mileage Reimbursement?

Mileage reimbursement refers to the practice of reimbursing employees for business-related travel expenses.

While it accounts for fuel, it also considers lease, vehicle depreciation, and other car-related expenses. This type of reimbursement is usually given per mile driven.

In some countries, mileage reimbursement refers to accounting rules and categories that help standardize expenses.

What is Fuel Reimbursement?

Fuel reimbursement, on the other hand, only covers the cost of fuel used for business travel. It doesn't take into consideration any other car-related expenses. This type of reimbursement is usually given based on receipts.

The difference between fuel reimbursement and mileage reimbursement is that mileage reimbursement takes into account all car-related expenses, while fuel reimbursement only covers the fuel cost.

How Does Fuel Reimbursement Work?

If you use your car for business purposes, you can be reimbursed for the fuel costs incurred. The reimbursement is usually calculated based on the number of kilometers traveled or miles driven.

However, to qualify for fuel reimbursement, you will need to keep accurate records of your travel expenses. This includes maintaining a logbook of your travels and keeping receipts for all fuel purchases.

To ensure that employees are reimbursed correctly, they need a receipt and an accurate logbook. Fuel and travel expenses can be included as costs, but you must show all travel logs if necessary.

What Counts as Business-Related Fuel Reimbursements?

Here are some examples of obvious and less obvious fuel expenses that you can get reimbursed for when you are an employee:

• Traveling for a client meeting;
• Driving to pick up anything on behalf of the company;
• Driving to the airport to pick up a client or a colleague;
• Going to another city for a business-related event;

Anything done to advance the business, big or small, is business related.

Is Commuting to Work a Business-Related Expense?

While some big corporations may reimburse you for commuting to and from work, typically, commuting is not considered a business expense.

What to Track For Fuel Reimbursement?

Keeping a gas log is one of the best ways to ensure employees are correctly reimbursed while companies have a clear overview of their travel expenses.

Last but not least, when you put fuel reimbursements into your profit and loss statement to apply them as costs (which you should), you must have a detailed log of travels - in case the tax authority wants a record.

Here is the main employee expenditure data that you should store in your fuel reimbursement logbook:

• Date of each journey
• Start time and end time of driving.
• Purpose of the trip.
• Kilometers driven.

If a company provides employees with company cars, this is all. But, if you're filing for fuel reimbursement while traveling with your personal vehicle, you will have to provide the following:

• Brand of the car and the year it was made.
• Average fuel consumption as per the car documentation.
• Engine size or engine capacity.
• Copy of car technical documentation.

Does an Employer Have to Pay For Fuel?

Most companies reimburse fuel expenses for employees who need to travel for business, but there might be some limitations. For example, a company may ask you to use its corporate Careem account for business travel.

Typically, if you incur the cost of fuel, your company will reimburse you as it is a cost tightly associated with the business.

Is Fuel Reimbursement Tax Deductible?

A massive shift for UAE companies will be the introduction of corporate taxes in 2023. With a corporate tax rate of 9%, UAE companies must keep track of all their spending. Fuel reimbursements fall under that category, as they can help reduce the amount of taxable income that a company has.

If you have a fuel reimbursement policy in place, it will help ensure that all of your employees are mindful of their spending on fuel and that they only claim back what they have spent.

Pluto allows UAE companies to issue unlimited fuel cards while centralizing the expense in one dashboard, so you can see in real-time how much is being spent and the number of tax-deductible costs your employees are making.