Whether you own a large business or SME, you probably make deals beyond borders to extend your company globally. When your company expands, a lot of things need to be aligned to make the transition of expense management smooth. Fortunately, cloud-based expense software can help, no matter where your employees work. However, here are a few things you have to keep in mind while making your expense process fit your business expansion.
Make your Policy International
Expense rules are not universal. You have to revise the expense policy every time when you expand your business to territories. Almost everything that is there in the policy applies to your expanded geography, but, based on where you are expanding, some country-specifications need to be added. Right from federal allowances for meals in Germany to variable mileage reimbursements in the UK and France, there are a lot country-specific rules that one should consider while enhancing the expense policy.
Setting Tax Rules Right
Value-added Tax, Goods and Service Tax and Consumption Tax are some of the tax types you’ve to deal with. Understanding tax rules is very important as you have to make filings on time, failing which costs more to businesses. Claiming, and reporting taxes correctly and in a timely fashion are critical to businesses. You should clearly understand what is reimbursable and what becomes taxable to the employee. Also, understanding what types of spend are taxed at what rate and under what situations can be tricky.
Making tax reporting easy for employees is the biggest challenge for businesses. Fortunately, you can set up all the tax rules in the expense tracking software so your users don’t have to worry about all these aspects.
Other than these, there are a lot more pain points such as setting up region-specific functionality, and multi-language support that the expense tracking software addresses so as to make expense reporting a pain-free process.