Is employee spending causing chaos for your business? Does your finance department spend too much time reviewing and reconciling expense reports? If you answered yes, then it is more than likely that you need to consider creating an expense policy or take some other route to seriously manage employee spending. Doing this makes the entire expense process easy for your employees.
When it comes to creating an expense policy, it can be difficult to understand where to start – especially for SMBs.
Here are a few tips to help you get started in creating an effective expense policy.
Key Features to Consider in Expense Policy
Good expense policies should align with corporate objectives, while also making expense report submissions easy and efficient. The following are a few things you should keep in mind to create a policy that works:
The Policy Must Be Clear and Precise
Make sure the policy is straightforward. Outline the basic policies and don’t include any corporate jargons. State all policies clearly. The easier your policy is to understand, the easier it is to enforce.
The Policy Should Be Easily Accessible
If your policy is buried in books or papers, it is not going to be used. Employees should be notified about any updates, either by an email notification or personally handing out the updated sections. If there are any major changes, it is probably important to have a meeting to discuss them with the rest of the team.
The Policy Should Outline Its Intended Benefits
Employees understanding the benefits of the policy encourages them to be motivated in adapting the new policy to their work life.Holding every employee accountable to the policy rules and regulations ensures that everything is fair. Addressing ambiguity in terms of corporate card usage, travel booking, and personal expenses can make the policy stronger.
Automated and Mobile Tools
Leveraging technology to supplement the expense policy can make it much easier for employees to comply with the T & E policies. With automated solutions like that of SutiExpense, the expense reporting process can be made easier. Employees can simply take a picture of the receipt, submit for approval, and the system takes care of the rest. No lost receipts, lost data, or duplicate expense claims. Automated expense reporting software not only processes expenses easily, but also allows you to stay in compliance with the corporate travel policies. Reviewing and updating expense policies will save you time, eliminating future reporting headaches.
An expense reporting software solution with a well-defined expense policy will help you get an effective expense management started quickly.