Expense management is a crucial aspect of any organization's financial health. It can be difficult to keep track of business expenses and ensure that they are properly reimbursed, but the process doesn't have to be overwhelming. By following these best practices, you can make the expense management process simple and effective.
Here are some of the top expense management best practices:
1. The first step in creating an effective expense management system is to set up a system that covers all types of expenses. You'll want to establish a policy for reimbursing employees for travel, meals and entertainment expenses, as well as office supplies and other costs associated with running your business. This will make it easier to track spending throughout the year so you can monitor trends and prevent excessive spending.
2. Create clear policies on what constitutes an allowable expense: Employees often have questions about what is an allowable expense (i.e., whether they should expense their cell phone bill at home or at work). If you create clear policies about this type of thing upfront
3. Establish clear guidelines for when expenses need to be submitted versus when they can be reimbursed after the fact (e.g., if there’s a delay between submitting an expense report and receiving reimbursement). This will reduce confusion about how much time employees have to submit expenses before they get approved or rejected, which can lead to wasteful spending on unnecessary items if someone forgets about them until it’s too late — or never even tries because they don’t want
By following the advice above, you can create a system for expense management that works for your organization, your employees, and your finances. Ultimately, managing and tracking expenses should be a straightforward process. Don't waste time reinventing the wheel; instead, put these best practices into practice to simplify the process and create an effective structure for reimbursement.