Keeping on top of your business expenses is important, but many companies still neglect the mundane task, just to find themselves desperately trying to locate lost receipts in the build up to tax season. In this article we explore how you can overcome the challenges of expense management and share with you our 4 top tips.
1. Clarity in your policy
Creating clarity in your expense policy is the first important step to take. Your policy should be fair so as not to leave employees out of pocket and should be easy to understand and follow. At the same time, policies should be focused on saving money for the company. Having a clear travel expense policy, which is readily available through mobile technology, will make it easier for everyone to follow.
2. Better expense visibility
Expenses are often a messy web of transactions that are badly organised into categories. This can make it difficult to see what was spent on hotels, what was spent on each project and what was spent by whom. Using an expense system that allows you to see all of this at the click of a button will enable you to build an understanding of what is being spent and why. In turn, this will help you to recognise areas where savings can be made and more efficient practices can be introduced.
3. Efficient processes
A common problem with expenses is that they are managed inefficiently. This can mean that employees have to chase payment or managers accidentally miss overspending. Creating a more efficient process that enables managers to approve spending with one simple click will prevent this from happening. It allows for the information to be accessed directly by accounts for quick reimbursement and enable you to improve efficiency and take better overall control of the expense management procedures. In the end, this will make your employees happier as they get repaid more promptly and will also ensure that you can achieve better policy enforcement.
4. Reviewing expense trends
Most expense systems do not allow the employer to see the trends of spending for different employees and this can make it difficult to challenge spends. A cloud-based expense system can unravel this problem by providing you with alerts when the particular spend is atypical from a normal pattern. This can give you the opportunity to examine more closely why there may be a difference. The main benefit of this is that it allows you to spot changes immediately before a pattern of overspend can develop. Challenging a staff member straight away will help you to bring all of these costs in line.
Streamlining your policies and utilising a cloud-based system can help you to overcome the challenges of expense management and the savings will easily justify the setup costs in just a short period. Book your free demo today to find out how ExpenseIn can support your business.