Corporate Expenses Policy Best Practice: 10 Tips

The word policy is highlighted with a marker pen in a dictionary

The American business magazine Forbes recently published an article about business expenses policies in an era of remote work. The author claimed that many companies have been revisiting their expenses policies during the global pandemic, because they were never designed for the new working normal.

In this blog article we share our top ten tips for a successful corporate travel and expenses policy.

1) Be transparent

A simple and easy-to-follow expenses policy will be much more accurately adhered to than a complex one.

2) Give easy access

Make sure all your employees have easy access to a clear written expenses policy that they can consult.

3) Operate a fair system

Your expenses policy will be affecting your employees so make sure that your rules treat everyone fairly and take into consideration the context of the expense.

4) Make it easy to adhere to

Making the expense process as pain-free as possible will be instrumental in guaranteeing that your employees comply with your policy regulations. For example, if your employees have to hoard paper receipts of all of their purchases then they may be running the risk of losing them or partially destroying them.

5) Be clear about the repercussions

Having a clear cause and action relationship between misuses and penalties will make the process very simple for everyone to follow and they won’t be able to dispute it when they are penalised.

6) Act promptly

As soon as the claim is submitted it should be reviewed and either paid or questioned.

7) Establish an extenuating circumstances policy

There are times when it may be reasonable for an employee to exceed an established expenses policy, but it is important that you handle this in the right manner.

8) Require itemised receipts

Whilst not always possible, requiring that itemised receipts are submitted through a receipt scanning system will make employees less likely to abuse the system.

9) Automate the system

Digital expense management systems enable you to set limits and terms for claims that will prevent abuse from being attempted in the first place.

10) Enforce your policy

Just issuing a company policy is not enough; you need to ensure that it is also being enforced.

Manually crosschecking your company’s policy with numerous expense claims is time-consuming and error-prone. Get in touch today to find out how our cloud-based expense management solution can support your business.

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