Working Out An Expense Policy Helps Everyone

Working Out An Expense Policy Helps Everyone

Working Out An Expense Policy Helps EveryoneWhether a person is traveling for vacation or for work purposes, one thing is clear; a lot of money is going to be spent. When a person is in a new city or country, lots of expenses add up, like paying for a place to stay, using taxis to get to business destinations, or needing to take clients out to dinner to strengthen business ties. But of course, there are other expenditures too, such as needing to buy new toothpaste, or shoeshine, or even just a small gift for the kids upon return.

There are many ways that a person traveling for work purposes can spend money. The important question is, how much of that money that they spend out of their own pocket are you responsible for? That’s where your expense policy comes in.

The Demarcation Of Costs

It is extremely important to make sure you that work out for yourself where you feel your employees can and should be reimbursed, and where your company no longer has financial responsibilities. By creating a solid policy and keeping your accounts department and traveling employees informed on it, you make the reporting of expenses much more straightforward for everyone. Your financial staff will have clear guidelines on which expenditures they can approve of in an expense report, and your ethical employees will know exactly where the boundaries are.

This is why you should take the time to create a complete and comprehensive policy on expenses, and then integrate this with a modern expense report system, such as software like ExpensePoint. A clearly laid out policy leaves little room for misinterpretation or ignorance if that policy is clearly communicated to staff. Without a policy, the possibility of simple human error or ignorance goes up significantly, and this can’t really be blamed on employees if they honestly do not know which expenses are acceptable and which aren’t.

Look at your business, and look at what kind of activities you will require of employees when they are sent on trips. Make a reasonable expense policy based on the type of work they need to do and the duration of these trips. It will make things easier for everyone.