How to Inculcate Best Practices in Expense Management
A well developed expense management process helps organizations effectively handle business T&E. Most organizations want to inculcate best practices in their expense management processes, but they don’t know how to develop and implement them. Here, we explain how to establish a best-practice expense management process.
Organizations should have a fair and clear expense policy, and they need to review and update it regularly. The expense process should be straight and simple; a robust and quick process ensures that spends are signed off appropriately by the right level of management and that business control is being adhered to. Relevant information on each spend should be captured in order to ensure there are no delays in administration and avoid potential problems with compliance.
Companies should define a timeframe for submitting expenses. Delays in claims not only hurt your employees’ pockets but also cause cash flow challenges for your business. They also need to make sure that the mangers are reviewing claims and approving them in time. Real-time audits make your expense program work better. They help rule out drawbacks in your operational procedures and enable you to maintain a fair system.
Employees and managers should have continuous access to the expense management system. Online application with mobile functionality allows employees to submit expenses while on the move, while managers can review and approve claims even when they are out of office. Expense reimbursement should be done within the published payment schedule. Payments need to be credited directly into employees’ bank account or directly to settle corporate credit card bills on a timely basis.
Best-practice expense management process provides access to data for analysis and review which can continue to dictate the business strategy and highlight opportunities for further cost savings. Best-in-class expense management software helps you effectively handle business expenses in a way that is consistent with the travel policy and organization’s and employees’ needs.
