6 Best Practices for Managing Business Expenses for SMB’s

Managing expenses, is a vital management task.  An expense management software, should make the process simple, straightforward, and easy to operate.

  1. Build a simple, fair, firm, clear, flexible expense policy
    1. An expense policy is a framework of rules, which tells employees what they can and cannot claim for their business spend.
    2. Expense policies should be simple and brief, and follow the  “KISS” principle.
    3. Well written expense policies, which are communicated clearly, lead to effective expense management.
    4. An effective policy eliminates fraud, and streamlines the whole claim, approve and reimburse cycle.
    5. It helps control spending, and allows accurate planning.
    6. This should be a “living document” – regularly audited, reviewed and updated.
  2. Gather relevant data for all expenses
    1. Relevant data will ensure speedy approval and no delays in reimbursements.
    2. Helps avoid potential problems with compliance and reporting.
  3. Submit and approve expenses on time
    1. Ensure claimants submit expenses on time.
    2. The timely submission improves efficiency of the expense process and avoids cash flow challenges for the business.
    3. Delays in sign offs, lead to an increase in credit cards fees. This does not benefit the company.
  4. Enforce accountability:
    1. Accountability is crucial to maintain a firm expense policy.
    2. Approvers should approve claims swiftly.  But that should not mean that they allow non-compliant expenses.
  5. Make remote expense tracking easy:
    1. With the onset of Covid-19, remote and WFH has become the norm.  Hence, it is paramount to make the entire expense process workable remotely – easy, hassle free and painless.
    2. Companies can automate the expense management process – opt for a cloud based, online software that makes expense management a breeze.
  6. Audit your processes and receipts:
    1. Regular auditing makes the expense process work better.
    2. Glitches in the operating system, are taken care by auditing.

ExpenseOnDemand ensures a seamless expense management process & timely reporting of business expenses.  It helps companies to have a clear vision of the company’s expense policies.  SMB’s get a better grip on their spend.

To check it out for yourself, click here to try the APP.

Image Credits: StartUpStockPhotos from Pixabay