Coming to business expense management, the policies you put in the place for your employees should be very clearly laid out, irrespective of the reason. There is no doubt that the policies will differ based on your company’s size and need, but make sure that every policy should be detailed and fair to the employees. So, here are some things to keep in mind while creating expense policies:
Research What you Want your Policy to Cover
List out the type of expenses your company is willing to reimburse and the levels of employees within the organization. Detail the acceptable price levels for each expense type and specify all the rules that apply to the acceptable amount to be spent on meals. List down the hotels you allow your employees to stay at and how will you account for other miscellaneous expenses. Ensure your employee understands every policy clearly, any ambiguity found will only add up hassles.
Distinguish Employee Grades and the Tags
Some companies would like to offer different levels of business expenses to employees based on the grades. For instance, managers can stay in luxury hotel rooms while employees are allowed to stay in budget rooms. Therefore, it is important to make these rules as explicit as possible to avoid future problems.
Update your Policies
Creating expense policies will be of no use if they are not practiced. Ask managers and department heads to execute policies every time an employee submits expenses. Work your own way and analyze the outcomes, once the flaws are minimal you can go ahead implementing the same in other teams as well. Always it is important to keep your employees interest in mind while enforcing the policies.
Implementing expense policies comes with its own challenges; expense management software will help organizations implement the policies in a better way with less hassles.