Five best practices in Expense Management
Travel and expense are the most considerable uncontrollable expense for all corporates. In all organization finance team continuously making efforts to identify and avoid fraud, but these efforts can be maximized if the finance team do not create an accountable system. An accurate and timely reporting of all expenses is essential for ensuring a smooth expense management process.
Around 43% of corporates are still managing expense manually, which reflects in human error, expense fraud, delay in approval, difficulty in enforcing policies.
Best practices in expense management create values from expenses, ensuring that they still facilitate the collection of revenue. They also contribute to employee engagement, enhancing accuracy and effectiveness with the use of online, digital channels and resources that make it easy to choose the most suitable suppliers, accurately record data and allow quick reimbursement.
Also, best practices for expense management include automating, as far as possible, manual and time-consuming procedures. It will lead to cost savings, reliability, enforcement and operational efficiencies.
For better expense management, here are some fundamental principles to be followed:
- Keep clear expense management policy
It is hard to follow a lengthy and complicated document, and employees will misunderstand it. Ask employees to read it after you have written your policy to check if it is clear enough. Make it accessible through open platforms, such as online or from a mobile app, so that if they need to, workers can conveniently refer to the policy.
- Define acceptable expenses for reimbursement
The best way to help employees to understand the policy is to give an example such as whats acceptable and whats not acceptable. This could include travel spend, dine spend, booking of tickets etc.
- Quick tool for claims
Use an expense management tool which automates the process of requesting, approving and processing employee requests, thus reducing the time it takes to clear employee claims. Even employees can take a photocopy of the receipt and raise expense from their mobile. This helps reduce mistakes and receipts missing.
- Ask only relevant information
Ask for the relevant information you need to reimburse the claim so that your employees are fast and transparent in the process. Make employees use the OCR, which automatically fetches the data required for your organization. This may help the employee to save time and error.
- Process payments for expenses in time
Managers can use the mobile application of expense management where they get access for approving the expense on the go. Using a mobile app, it helps to avoid frustration and poor employee experiences.
By following these best practices, corporate get a clear view of handling company and employees expense. Streamlining the travel & expense management corporate can automate compliance, stay in control, improve finance productivity, make an informed decision, gain employee love which helps to build the roadmap to success.