Many businesses today have begun to travel around the world in order to close major deals and conduct other business-related activities. With that in mind, you as a business owner have probably developed some sort of travel policy so that your expense reports can be completed and tracked appropriately. But when was the last time that you actually sat down and reviewed this travel policy? Having an extremely strict policy can provide major and unnecessary headaches to your regular traveling employees. On the other hand, an extremely vague policy can result in employee spending sprees!
As the business world continues to change and grow each year, it’s important that you review your travel policies on an annual basis. By doing so, you can make sure certain rules don’t inhibit your dedicated employees and that certain regulations are met to prevent different types of overspending. Here are some things to consider when updating your travel policy.
The Travel Policy Is A Communication Tool
While it can’t control the behavior of your employees, a travel policy will provide a lot of clarity for your employees and create a set of guidelines which your workers can follow. Make sure that you go over every possible procedure that can occur on a business trip, whether it’s reserving a rental car or booking an airline. For example, do you want your employee to purchase the lowest fare ticket possible, or are they allowed to pay for first class? Situations like this, among many others, need to be clearly communicated and documented into your travel policy. That way, tracking expense reports can be much easier for you and your finance department.
When creating or editing a travel policy, make sure that you as a business owner set up ways to prevent your employees from taking advantage of your company. As new forms of technology are created, the chances of your employees manipulating your travel policies increases. For example, there are websites out there which allow people to generate fake receipts! On top of that, it can be difficult to prove whether or not the receipt is real because as an employer, you are not allowed to request an employee’s personal credit card statement.
Because of this, companies have turned to using company credit cards, but even these can’t help you monitor and control what your employees use the card for. Therefore, the best course of action would be to implement company expense cards. These cards allow you to set spending limits and easily track purchases. On top of that, you can see the company card statement and ensure that every purchase was done in good faith.
Review Your Travel Policy Constantly
In conclusion, as a business owner, you need to be on top of important aspects of your business, such as travel. Disregarding this aspect of your business can result in major drops in profit. Make sure to review your travel policy as much as you can to ensure that the system works for your best employees and prevents any bad ones from abusing it. You can make your life even easier by implementing an automated expense system into your company. That way, your expense reports can be reviewed and checked without any human error. These are all ways to ensure a healthy travel policy for your company.