Managing business expenses is a problematic topic for most businesses. Therefore, an expense policy must be created at the earliest in the life of a business, to save time performing this task.
However, creating an expenditure policy is not enough, it must also be adapted to the activity of your company and update it to follow the evolution of your entity. An up-to-date spending policy will save your business valuable time and money and avoid misunderstandings about excessive expenses.
In an increasingly complex environment, it is essential to have an overview of the expenses incurred. As a result, companies establish an expense policy to educate their employees on the rules in place during a business trip.
An inexistent or poorly designed spending policy is part of the hidden costs of inefficient expense management!
These guidelines relate to business expenses, such as mileage expenses, food, transportation, and how they are reimbursed.
Basically, this document is the reimbursement regulation of the company to which the employee must comply. The employee must comply. The formalization of these practices improves the transparency and the visibility on the possible leaks of costs.
First of all, we must identify the expenses to be included in the spending policy. The document needs to be as clear as possible in order to avoid misunderstanding.
Thus, you will need to:
Your expense policy can include a lot of items as long as it is consistent and legible. Be sure to include some of the frequently asked questions to answer queries that are not directly part of the spending policy but are essential to the assimilation of these rules.
You need to also be careful when communicating the rules: Writing a spending policy is not enough, you need to also know how to communicate it.
As a result of developing your spending policy, it is necessary to monitor and verify that it is being followed. To be able to do this, here are a few recommendations:
From time to time, ask for feedback on this expense management to actively involve your employees. They will feel involved in the process and will not feel it as a constraint.
Today, expense management solutions exist to meet this need. They allow the automation of the process from the receipt to accounting by optimizing the control and the respect of the rules in force.
An Expense Management Solution like Expensya allows you to automate the establishment of your expense policy by configuring expense rules, reimbursement caps, and alerts in the event of non-compliance with the policy in place directly from the platform, the whole being ultra-configurable according to several criteria, periods, distances, travel time, etc.