How to prevent extravagant spending? If this is on top of your head, you will have to take appropriate steps to prevent this from creating problems in the future. Multiple cash purchases, perky spending, and bulk trips submitted are just a few reasons for extravagant spending. Whether these habits are borne out of frustration from time-consuming spreadsheets, they will be costing your business more. So, the following are five areas that you can focus on to help eliminate extravagant spending.
Make Everything Crystal Clear
Outline clearly what can and cannot be claimed when your people are traveling for business. A clearly defined T & E policy can help you. Keep spending policies updated, reasonable, and communicate these to employees on a regular basis.
Tell your employees about preferred accommodation and what they should consider while traveling on business. Having a centralized booking platform keeps all spend visible. Tools such as SutiTravel helps you capture employee travel information and set limits for travel, thus providing more insight and control over bookings.
Let Automation Do the Work
Automated expense solution can enforce restrictions within the system and alerts you when anything goes off track. Mileage integration is built-in to verify distances employees covered. With built in policy information, checks can automatically be made.
Make Everyone Accountable
Whether intentionally or not, employees can get carried away with the guidelines set. Make sure every employee is accountable for their actions and provide the necessary documentation to justify their business spending.
Practically it is not possible for every single purchase to be supported by a receipt. So, limit what can be reclaimed without a receipt. Providing prepaid corporate card that has a limit set can help reduce overspending.
Following these steps can definitely help you keep employee spending in control.