6 Best Practices for Managing Business Expenses for SMB’s8 July, 2020 2:51 pm
Managing expenses, is a vital management task. An expense management software, should make the process simple, straightforward, and easy to operate.
- Build a simple, fair, firm, clear, flexible expense policy
- An expense policy is a framework of rules, which tells employees what they can and cannot claim for their business spend.
- Expense policies should be simple and brief, and follow the “KISS” principle.
- Well written expense policies, which are communicated clearly, lead to effective expense management.
- An effective policy eliminates fraud, and streamlines the whole claim, approve and reimburse cycle.
- It helps control spending, and allows accurate planning.
- This should be a “living document” – regularly audited, reviewed and updated.
- Gather relevant data for all expenses
- Relevant data will ensure speedy approval and no delays in reimbursements.
- Helps avoid potential problems with compliance and reporting.
- Submit and approve expenses on time
- Ensure claimants submit expenses on time.
- The timely submission improves efficiency of the expense process and avoids cash flow challenges for the business.
- Delays in sign offs, lead to an increase in credit cards fees. This does not benefit the company.
- Enforce accountability:
- Accountability is crucial to maintain a firm expense policy.
- Approvers should approve claims swiftly. But that should not mean that they allow non-compliant expenses.
- Make remote expense tracking easy:
- 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.
- Companies can automate the expense management process – opt for a cloud based, online software that makes expense management a breeze.
- Audit your processes and receipts:
- Regular auditing makes the expense process work better.
- 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