When you want something done quickly, following government procedures can seem like a creaky, interminable process. But when changes in the regulatory environment do inevitably occur, organizations that can efficiently adapt have an advantage over the competition. Automated expense management software can streamline the processes of tracking expense claims and reimbursing employees and make it easy to comply with current regulations.
On Aug. 1, the Internal Revenue Service released new regulations likely to affect every taxpayer who receives reimbursements and related expense allowance, as well as the organizations that provide these reimbursements. According to an article on AccountingToday.com, TD 9625 is intended to clarify expense reimbursement rules and exceptions. The agency also requires greater detail when it comes to reimbursing such nonemployees as clients and contractors.
The point is that the IRS regulations governing expense claims are likely to grow ever more complex. And for all organizations — especially those operating with an IRS Accountable Plan — keeping up with the changing rules is critical to the health of a business. Thus, it’s important for an organization to review its travel and expense policies on a regular basis to ensure compliance.
With automated expense management software like Chrome River EXPENSE, a company can alter its rules, add new policies, and restructure approval chains at any time. Once the changes are entered, the system automatically ensures compliance with current corporate and governmental policies.
Every time an employee or executive saves an expense item, the expense management software checks for compliance with corporate policies. With each item submitted, the system calculates the appropriate approval routing based on the unique attributes of each expense and the expense report as a whole.
In a changing regulatory environment, organizations must keep up with current rules and regulations or risk serious penalties. Automated expense report software helps reduce this risk by making compliance more efficient and consistent.
What tips would you offer for managing IRS compliance? Has your organization used automation successfully in this regard? Let us know by sharing your thoughts in the comments section!
Our choice of Chrome River EXPENSE was made in part due to the very user-friendly interface, easy configurability, and the clear commitment to impactful customer service – all aspects in which Chrome River was the clear winner. While Chrome River is not as large as some of the other vendors we considered, we found that to be a benefit and our due diligence showed that it could support us as well as any large players in the space, along with a personalized level of customer care.
We are excited to be able to enforce much more stringent compliance to our expense guidelines and significantly enhance our expense reporting and analytics. By automating these processes, we will be able to free up AP time formerly spent on manual administrative tasks, and enhance the role by being much more strategic.