Why am I funding my employer using expense reports?

What is the biggest reason why expenses aren’t submitted on time? In my experience in speaking with “repeat offenders” with previous employers, the biggest challenge is simply the hassle of doing so. Although employees obviously want to get reimbursed for their travel expenses, the sheer headache of creating and submitting expense reports causes them to procrastinate. As receipts continue to stack up the task of submitting expenses becomes increasingly more challenging.

The pain of being out-of-pocket for thousands of dollars is often enough of an incentive for most employees to submit their expenses. I have known of many examples of individuals having upwards of $30,000 of expenses outstanding over several months! Even though this is an extreme example, it illustrates how delayed expense submission can have a serious impact on personal credit and management of finances.

Expense reimbursement should be an exception and not policy

Travel for work and bearing the expenses on personal credit cards is an accommodation by the individual to the company. It is not incumbent for the individual to advance money for the company. The policy of expense reimbursement has unfortunately become the norm and deviation from that the exception.

Reimbursement typically takes more than 30 days for approval

Businesses take around 5 weeks to complete reimbursements, which is a major issue for individuals. It is easy to determine around 60% of people have issues with paying their bills due to extended reimbursement process.

Reimbursement Delays Results Lowers Retention Rates

Expense reimbursement delays can make employees highly unsatisfied. When delays occur frequently, it frustrates employees forcing them to leave the job. Around 70% of employees have stated they look for a new job when faced constant delays on behalf of the company.

People may have limited access to credit

Maybe you have bad credit and can’t get a card, or all your cards are maxed out. In those cases, covering a work business trip can be tough. Employees may not have access to cash flow to be able to float these expenses upfront, and employers aren’t always cognizant of that fact.

Rocket Expense is the first company to address this issue by working with employers and individuals, providing funding for expense reports yet to be approved.

Key benefits of the Rocket Expense solution

· Pay a low flat rate per expense report, typically less than the cost of your Uber ride home

· Don’t have to carry large business-related expenses on personal credit cards

· Submit expense reports on the go

· Funding as quickly as within 8 hours

· Pay back, when the expense report gets reimbursed

If you are interested in learning more or joining, you can visit Rocket Expense.