Does your expenses policy just go through the motions? Once it has been created it gets put in a file and forgotten about. This means that employees are unlikely to read it and they become disillusioned with the company’s policy. This means that the management of expenses becomes a reactive process, relying on the finance team to catch claims that fall outside of the policy. Undoubtedly, not all claims can be policed correctly, meaning that suspicious claims fall through the cracks, costing your business money.
Creating a clear policy defining what employees can claim for and how much they can spend means that you can save your business money. Simplifying your procedure allows your employees to easily familiarise themselves with the policy and understand what is expected of them.
When creating an expenses policy it is important to be fair. Of course, employees will expect different departments and directors to be able to claim more than them; however it is important that they feel the amount is justified. The claimable amount should be in line with job roles.
Keep the policy clear and easy to understand, eliminate any confusing wording, leave no room for employees to misunderstand or misconstrued any aspect of the policy. Take into account price differences in different regions, a sales manager who visits clients in London will spend more than a manger going to Nottingham.
Employees need to understand what expenses they can claim for, consider your business, the industry you are in and develop a list of relevant expense items that employees can follow. It doesn’t need to be an exhaustive list as you can add to it as time goes on. Issue a copy of the policy to every employee and make it available in communal areas.
Regularly update your policy; it is worth scheduling an annual review to ensure that it is working for your business and your employees. Change and amend the policy where necessary to ensure that it evolves with your company.
At Commercial Domestic Investigations we understand that your business has a lot of tasks to manage on a day to day basis. We also appreciate chasing payments can take up a lot of your time, that is where we can help. We handle overdue accounts with the highest level of professionalism whilst adhering to best practice. If you want to find out how we can help your business, contact us on 08444 159200 or email firstname.lastname@example.org.