Streamlining Expense Management with Xtracta

By 2024-01-23 Blog
Expense management process – a pile of receipts

Streamlining Expense Management with Xtracta

Managing employee expenses can be challenging for businesses of all sizes. From lost receipts and manual data entry to complex tax laws and partial deductions, the traditional approach to expense reporting is rife with inefficiencies and the potential for costly errors.

As companies face pressures to control costs while enabling productive travel and client engagement, efficient expense management processes have become vital. Sophisticated data extraction technologies like Xtracta have introduced an innovative solution to traditional expense management, helping businesses maintain financial integrity, boost efficiency, and ensure compliance. Discover how Xtracta is transforming expense management through automation and intelligent data capture.


The Challenges of Traditional Expense Management

Expense management is necessary for many businesses, especially those with employees who travel or incur day-to-day work expenses. These expenses can range from simple things like paying for parking when visiting a client to more significant costs like accommodation, transportation, and meals during business travel.

Historically, businesses have relied on manual processes to manage these expenses. These processes often involved painstakingly collecting receipts during travel, taping or stapling them to forms, and then transcribing all the key data like dates, merchants, amounts, and tax information into spreadsheets. Such time-consuming methods opened the door to numerous pain points:

  • Burdensome for Employees: Keeping track of physical receipts and manually filling out expense reports can be tedious, often leading to frustration and delays.
  • A Higher Risk of Lost Receipts: Physical receipts can easily be misplaced or damaged, making it challenging to claim reimbursements or meet tax requirements.
  • Complex Partial Deductions: Separating expenses into categories like travel and entertainment can be complicated, increasing the risk of errors and potential tax implications.
  • Difficulty with Additional Information:Including additional information, such as travel locations or project details, can be cumbersome and error-prone with manual methods.

Expense management process - man processing receipts

The New Way: Automated Expense Processing

To address the challenges of traditional expense management, sophisticated automated solutions have emerged, streamlining the process significantly. Advanced data extraction software, like Xtracta’s receipt scanning API, harnesses artificial intelligence (AI) to automate the process of capturing, reading, and interpreting expense documents.

This easy-to-use software allows users to take photos of receipts, avoiding manual data entry and reducing the risk of errors. It automatically extracts and analyses relevant information, including the currency, merchant location, sales tax, and the types of products or services purchased. This level of automation extends beyond mere convenience, offering precision in areas where manual processes may falter. Some of the key benefits of this technology include:

Ensuring Global Compliance

Understanding which expenses are tax-deductible or eligible for sales tax reclaim can be complex for international business travellers. By analysing the purchased items and cross-referencing them against tax rules and policies, expense management systems can determine which expenses are fully deductible, which may be subject to partial deductions (such as entertainment costs), and which cannot be claimed at all. These systems rely on comprehensive receipt data with Xtracta’s data extraction technology able to capture all line items from receipts and if needed, VAT/GST breakdown tables, This intelligent processing helps prevent costly mistakes caused by employees’ unfamiliarity with intricate tax laws.

Improving Receipt Image Quality

When people take pictures of receipts, the conditions are often less than ideal. Low light, crumpled paper, or odd angles can result in poor image quality. To address this issue, Xtracta offers tools to enhance the quality of photographs, particularly for receipts. Xtracta’s SDKs are free of charge to customers and can be integrated into apps, helping to ensure that the receipt photographs captured by users are of high quality. If you have a lengthy receipt, you can scan the long receipt and convert it into a single panoramic image. These features are particularly useful for comprehensive expense reports involving extensive travel and/or project-based work for users on the go.

Streamlining Workflow and Productivity

Automated expense management solutions streamline the expense reporting process, relieving employees from the burdens of manual data entry tasks and giving them time to focus on core business activities. This efficiency gain can translate to faster reimbursement times, improved employee satisfaction, and enhanced overall productivity. Such solutions offer real-time visibility into expense data, enabling better financial decision-making and strategic planning.

Expense Management Made Easy: Try Xtracta Today

With remote work and global travel becoming increasingly common, the demand for automated expense management solutions is set to increase. Xtracta’s powerful data extraction capabilities position it at the forefront of this evolving landscape.

If your business is looking to stay ahead of the curve, embrace the future of expense management with Xtracta today. Our innovative data extraction technology is easy to integrate into existing expense management software applications. To learn more about integrating this technology into your software, contact an Xtracta expert today.