Care homes are wasting time and money by not automating their expense management, says pre-paid card company Soldo, and this is creating a lack of visibility over what is being spent and claimed for by employees.
Research by Soldo reveals a disparity between how carers account for expenses and how other functions within the care home reclaim the money they spend.
In addition, while some 34.8% of central functions, such as finance and HR, use an expense management platform, this figure falls to 13.9% among carers and support workers who are more likely to rely on petty cash (61.1%).
Central functions also use credit cards (65.2%) and invoices (68.5%).
“Some automation is being used in the care home sector, but when providers were asked how they manage their expenses it became clear there are still a lot of discrepancies when it comes to automation,” said Soldo’s account manager Daisy Robb.
With revenues fluctuating, cashflow unpredictable, plus the cost of living crisis and the challenge of managing temporary staff, it is important care homes find effective ways to stay in control of their everyday costs.
The Soldo research confirms just how much care homes still rely on a system of petty cash.
Petty cash is used in 68% of the care homes questioned, with 74.2% of organisations with more than 1,000 employees using this approach to expense management.
“Individuals and teams often share cards, making it incredibly difficult for the home owner or finance team to have real visibility of spend, opening them up to fraud, increased errors and hours of manual admin.”
With more places not accepting cash it’s important care homes begin to shift away from this reliance on physical money. This will ensure they can continue to buy essential items without upsetting staff who need to buy things out of their own pocket.