Why Follow A Best-Practice Expense Management Process?
We understand that while most companies would like to adopt best-practice procedures it can be hard to a) know what best-practice is and b) know how to replicate it or implement it. So here’s a guide that will help.
While most companies would like to adopt best-practice procedures it can be hard to a) know what best-practice is and b) know how to replicate it or implement it. So here’s a guide that will help. This guide provides eight tips that will make submitting, approving and reimbursing expenses more efficient, more appropriate and less frustrating. It also lists five helpful resources to help you out.
Start With A Firm, Fair Expense Policy
Having a fair, clear and unambiguous policy is the start of any best-practice expense process. Moreover, companies have an obligation to create a policy to demonstrate to themselves, and to the IRS, that the expenses being reimbursed are genuine, and that the organization is not reimbursing individuals for inappropriate or personal expenses.
Keep It Simple
When it comes to expenses, the old acronym – KISS (Keep It Straight and Simple) – applies. Keep your process straight and simple, and people are more likely to comply. If your systems are bogged down with layers of administrative complexity such as triplicate forms and pre-approval, it’ll have a demoralizing effect on the your employees and tie up precious man-hours.
Collect The Right (Relevant) Information
When it comes to the details, the secret lies in the balance. Don’t ask for War and Peace. But, having said that, don’t simply accept the price and date for each expense item either. Companies ask for receipts not because they don’t trust their employees, but because the IRS requires receipts as proof – capturing relevant expense information that will help to ensure there are no delays in administration and help avoid potential problems with compliance later on.