Keep Expense Spending Under Control

Keep Expense Spending Under Control

Keep Expense Spending Under ControlMany small businesses have limited budgets. Granting employees the ability to submit expenses, or giving them a corporate credit card, requires a lot of trust. However, trust often does not go far enough. As a small business owner, it is in your best interest to create an expense policy.

Where To Begin

It is best to clearly outline your expectations of your employees. Employees may simply be confused when it comes to expense reporting, and need clear expectations to help them better submit their expense reports. When crafting your expense policy, you should look to make it clear and unambiguous. You will want to address or create a statement of purpose, company expectations and policy compliance, travel and travel-related expenses, accommodations, food and entertainment, and other expenses.

Tips For Crafting Your Policy

You will want to create a policy that is universal, and applies to all employees in the company. You should clearly communicate this policy with your employees, giving them access to the policy via email and internal networks. Soliciting advice from your employees would be useful as well. It is employees who are on the front lines, if you will, and will be able to provide information about what works and what does not work. They will also be able to communicate their expectations to you. You should also be mindful of your employees, and use a software tool to file expenses. This will also make the expense management process easier for you as well.

You should also be able to set targets for policy compliance for each manager. Communicate your expectations to them, and be clear about how you expect them to hold the employees that work under them accountable.

Policies To Consider

When crafting your expense spending policy, you should consider mandating that employees do business with particular companies. For example, you can set up travel agencies that your employees can book travel through, and instill limits on their spending. You can also require employers purchase supplies through a supplier of your choosing. It is also permissible for you to set spending limits for your employees. You can limit meal costs for employees’ personal meals, and set a policy on alcohol consumption.