Why is an expense policy so important?
A key ingredient in any functional and successful business is to have an effective expenses policy. It may not seem obvious but an effective policy provides the organizational structure to make both employees and clients happier, thus employees make the most effective contribution to an organization’s goals. A full expense management platform may seem trivial, but it resolves a lot of employee pain points.
The plight of the modern employee
Employees in the field often find the need for an expenses app that encompasses all their needs into one like mileage tracking, digital receipts, and online expense management. That’s a hefty toolkit for one professional to carry.
Thankfully, in today’s society, most of us have access to a smartphone that’s capable of performing anything you need it to do. It has the capability of taking and tagging photos, OCR (optical character recognition), and a ton of analytics and calculations. It’s also connected to the Internet, so it can communicate securely with home base from anywhere in the world.
Combine a smartphone with an expense tracking software and you have the ability to perform vital functions related to expenses from any location. This also offers a slew of expense reporting tools that make it easier for accounting to approve, deny, and reconcile employee requests.
The last thing a business traveler needs is for expenses to dry up and have a vital charge be denied while on the road. They could be stranded in the middle of nowhere without means of getting gas, lodging, or food. Automating processes through business expenses tracking software is like Tony Stark suddenly having his Iron Man suit with Jarvis lending a hand.
Crafting solid expense management policy
Webexpenses built software to cater directly to our customers specific and different needs. Our platform has fully customized expense reporting tools that can accommodate any expense management policy. Combine that with our expense report app that allows tracking in real-time no matter where you are, and you have the keys to successful expense management. Now comes creating an effective expenses policy.
Each company’s expense management policy will be unique, but there are some basic considerations to include.
The policy should be clear and simple
There’s no need to bring in a lawyer for a complicated, long-winded expenses policy. Keep it simple by outlining limits and policies regarding food, gas, mileage, lodging, and other expenses that may come up on the road. When employees know their limits, they’ll be able to work easily within them.
Employees should be made aware of the policy
Of course, to ensure that employees follow company policies, it’s important to let them know about it a few weeks before implementing it. This gives them the time to adjust to the new policy and ask questions related to the change. Also, keep copies of the policy posted in public areas like break rooms and the HR office.
The policy should be programmed into the expense management software
Although employees can generally be trusted to follow policies, mistakes can easily happen with an automated system. Programming expense policies into employee expenses software adds a layer of quality control to the process. It makes everything so quick, employees may even be reimbursed while they are still on the trip.
Providing the best working environment possible
As business owners, there is a responsibility to provide for the overall happiness of employees. Ask Keller Williams.
This real estate company tops the 2018 list of happiest companies and it credits its ability to communicate its policies to agents across the country as its secret to success. It’s a secret that’s not hard to replicate in any size business.
Employees need to trust that the organization they’re working for can provide for them financially. An inefficient employee expense reporting and reimbursement policy can make the company seem like it’s in poor financial shape and going out of business soon. Can you imagine pulling out the company credit card to pay for a dinner with a prospective client and it gets denied?
You only get one chance to make a first impression, and your team’s nerves will be higher in the field than at the home office. They need to trust that wherever they are, their company has their back.
Employee expense management is the first line of defense in keeping your employees from abandoning you for another company. Take it seriously, not just as an afterthought. A solid expense management policy is vital to a healthy and stable company. You’ll see improvement across the board as tension is relieved and employees are able to get back to what they were hired to do.
Far too often, professionals, even in complicated fields like computer technology, medicine, and science, find themselves being bogged down by basic administrative tasks. Data entry, exception processing, quality control, and other operational processes can’t be ignored, but focusing on them misdirects energy that could be used on other tasks.
Don’t let expense management create a rift between the management and employees. Expense software eases communication channels when it matters the most, making your company more efficient and, more importantly, happier.
If you’re interested in finding out more about Webexpenses, feel free to contact us or request a free demo.
