No Gray Area

When it comes to your organizations expense policies, everything should be in black and white, with no gray area in between. Having a clear, decisive, and well documented expense policy in place, will help to reduce non-essential, unrelated to work expenses. The bottle of wine that was ordered at the companies expense, can not be tolerated, and expense policies are in place for just such an occasion.

Perhaps there was a good reason, and the bottle of wine was for entertaining a business associate. By having strict guidelines in place, the blurred areas of expense policies, will become clear. This will ensure that expense reports are accurate, which will result in more profits for your organization. Managers, treat all of your employees equally, when it comes to expense policies. By allowing just a small group of employees to slide on certain expenses, will result in a snowball effect. What started out as a snowball, will soon turn into an avalanche, and spending will become out of control.

Clear And Decisive

Having a no tolerance policy for irate, and unaccounted for spending, will cut down on unrelated expenses to the organization. Perhaps the above mentioned bottle of wine was simply used for personal purposes, which can not be tolerated by a manager, for the organization to make a profit. Having expense policies in place, and keeping employees informed of the policies, is of the utmost importance for your business to continue turning a profit.

The policies should be easily understandable, for all parties involved. Something as simple as wording, should not be a contributing factor, cutting into your organization’s profits. If your expense reports are not easy to understand, gray areas can arise within your expense policies. This can cause a number of problems within your organization. Misunderstandings, arguments, and possible terminations can all take place due to an unclear expense policy, so keep it simple, yet effective.

Just because wording is simple, does not mean it is not effective. When it comes to expense policies, the information should be decisive, and to the point. However, the wording should also be simple enough, that a student can understand it. This will ensure that expense policies are communicated properly between managers and employees.