Let’s talk about business expenses… they’re a real headache for finance teams to track, with 43% still doing it manually. Going through receipts and invoices can take days - even weeks - and there’s no guarantee everything gets accounted for.
Manual processes are also prone to errors, which can lead to overspending and duplication. In fact, UK businesses lose a staggering £37bn every year because of mistakes like these.
But, there is a more efficient way for teams to keep track of their business expenses… by using open banking. With open banking, businesses can gain a comprehensive view of their spending and achieve greater financial stability. Keep reading to find out how.
Automatic transaction categorisation
Let’s start with transaction categorisation. One of the biggest challenges finance teams face when tracking expenses is categorising transactions correctly. It can be incredibly time-consuming and often results in errors that skew expense reports and makes it difficult to track spending patterns.
But with open banking solutions like Yapily Data, transaction data can be automatically categorised based on merchant codes or descriptions, eliminating the need for manual categorisation. Because of this, businesses can easily see where their money is going and identify areas where they can cut costs and save money.
And the best part? It’s entirely automated.
Streamline expense report generation
Gone are the days of manually sorting through receipts and invoices to create expense reports (phew!). With open banking, businesses can automatically generate expense reports based on transaction data. Besides saving time, it reduces errors associated with manual expense reporting, like transaction duplication.
By streamlining the expense report generation process, finance teams can focus on more strategic tasks, like analysing spending patterns and identifying areas for cost savings. Plus, with expense reports generated in real-time, businesses can quickly reconcile expenses and submit reports for reimbursement, improving cash flow and overall financial management.
TLDR: automatic expense report generation powered by open banking allows businesses to save time, reduce errors, and improve their financial management capabilities.
Monitor spending in real-time
Did you know that an estimated 5% of business revenue around the world is lost to fraud? More to the point, expense fraud alone accounts for 14.5% of all fraud discovered.
Using platforms powered by open banking, finance teams can receive instant notifications and alerts for business spending, creating an additional layer of security against fraudulent transactions and unusual spending patterns.
By having this data at their fingertips, finance teams can quickly identify and investigate any potential issues. Not only does this protect businesses and their finances, but it also gives valuable intel. Armed with this knowledge, businesses can make smarter choices about spending, which could have a considerable impact on their bottom line.
Instant wallet top up
We know that keeping track of expenses is important, but what about the process leading up to spending? Open banking can help with that, too.
Digital wallets allow businesses to monitor funds before a single penny is spent. And, by using open banking payments, customers can top up their business wallets straight from their bank account, ensuring funds settle instantly.
The best bit? Customers can enjoy a seamless user experience without having to leave the website. One example of this in action is Soldo, who has already processed over £6 million in open banking payments, benefiting thousands of businesses across the UK and Europe.
Take back control with open banking
As we’ve said, open banking can help businesses gain a more comprehensive view of their spending and regain control over their finances. But it’s not just about saving money - open banking can also help to streamline processes and save finance teams precious time.
To learn more about open banking and how it works, check out this blog. Or, if you’re ready to take the next step, get in touch with our team to see open banking products like Yapily Payments and Yapily Data in action.