Travel and entertainment (T&E) is the second-largest controllable expense for businesses, behind employee payroll and benefits. Automated expense management can speed up employee reimbursement, minimize lost paperwork, reduce errors, and simplify report submission. But policy must be the foundation for technology. Companies of all sizes should adhere to industry best practices when establishing policies governing expense reports. Nothing less is expected by the IRS and auditors.
This, in turn, raises the question, “What are the advantages of effectively tracking and managing employee expenses?” You probably have some established guidelines for expense reporting, but have they evolved with the shifting nature of business? If not, a refresh is essential. CFOs should emphasize that organizations that efficiently track and manage employee expenses can take full advantage of tax deductions, improve their budgeting and forecasting, regulate their expenses, and substantially reduce expense fraud.
Perhaps you already have an expense management plan in place and are looking for a more advanced approach to this critical business process. Or perhaps you’ve been operating without a well-thought-out plan for years and are now ready to create one from the ground up. Regardless of where your company falls on the spectrum, these best practices will assist you in developing an effective expense management strategy.
These are the six best practices for expense management that we believe an organization should utilize to maximize its finances:
1. Expense Policy
2. Expense Reporting
3. Collecting Critical Expense Information
4. Establishing Accountability
6. Regular Audits of Process for Fraud
With 43% of businesses still using manual processes to manage their expense reports—and 46% not tracking the associated costs—implementing automated expense management software is also another best practice for businesses to consider.
Simplifying the reporting process for employees and managers is a key motivator for the 82% of companies that have invested in or plan to invest in technology to facilitate improved expense management.
Read the complete guide here: https://bit.ly/3Pm70F2