Healthcare organizations already know that tracking personal mileage can be difficult. Relying on employees to estimate miles driven and manually enter the information into expense reports limits reliability and efficiency. A manual mileage tracking process could actually be costing your organization money, especially when you’re managing lots of people and data.
With mobile healthcare on the rise, it’s time to start planning for the future.
Mobile healthcare is on the rise
At 11%, SAP Concur found that its healthcare customers spend the highest portion on personal car mileage, more than double the average spend of any other industry. And it’s only going to get more expensive. The demand for mobile healthcare will continue to increase as the number of Americans 65 and older doubles in the coming decades, requiring significantly more care as a result. This growth means more staff members such as nurses and hospice workers traveling to a variety of locations. Without a complete mileage solution, keeping up with accurate mileage reporting will continue to cause frustration as your organization grows.
Smooth the road for your organization and save money by incorporating these four best practices for managing transportation and personal mileage expenses.
Best practices for mileage reporting
1. Evolve your guidance
Clearly define your expense policies by including personal mileage dos and don’ts. Employees will appreciate having easily accessible guidance to help them stay compliant, keep their reports accurate, and allow for the quickest possible reimbursement. Be sure to review and adjust guidelines yearly to ensure they still meet the needs of your business and travelers.
Your organization’s personal mileage policy should include the following information:
- When expense reports for mileage should be submitted
- When to use a personal car versus a car rental
- The varying rates for different employee groups, if any
- Clear expectations for what will and won’t be reimbursed
2. Set high expectations
On the spend management spectrum, personal mileage offers little control and less data for healthcare organizations. But it doesn’t have to be that way. Set higher expectations to gain greater visibility and control of your staff’s spending.
Accurately capture and reimburse personal mileage by:
- Requiring documentation for distance traveled
- Utilizing the expense data you have to gain visibility into organization spend
- Checking for travelers with excessive personal car mileage
3. Keep it accurate
With so many healthcare professionals on the road, accurately tracking mileage can make a big difference in managing your employee spend, especially since tracking transportation is the second highest expense incurred by healthcare organizations, after airfare.
Companies save an average 20% on cost savings after moving from self-reported mileage to automated GPS mileage tracking. -Motus Mileage tracker
Providing and encouraging the use of tools like GPS tracking can help with accuracy. Additional benefits include:
- Enabling employees to effortlessly capture distance traveled
- Increasing the accuracy of distances reported and reimbursed
- Easier collection of the information you need for compliance and tax reporting
- Increasing employee compliance and minimizing fraud
4. Make it all mobile
Train staff to track mileage with a device they already know and love: their mobile phone.
In a recent study, Forrester found that 43% of organizations consider a T&E system offered through a mobile app the most effective way to maintain compliance. With a mobile app, employees are more likely to use it on the go and submit information instantly rather than estimating miles later. Motus mileage tracker also found that companies save an average 20% on cost savings after moving from self-reported mileage to automated GPS mileage tracking.
Tracking mileage through a mobile app is:
It allows staff to free up time from administrative tasks so that they can get back to caring for patients.