How to manage and control efficiently company expenses

Although most employees act with complete honesty when it comes to company expenses, unfortunately, there is still a significant number of people who go to extreme lengths in order to claim back money on company expenses.

Businesses lose yearly millions of dollars a year because employees exaggerate and use false claims in order to have their personal expenses deducted as company expenses.

Because of this issue, many companies are still trying to establish solid policies, in the attempt of fight against misconceptions and false money claims, but having an effective strategy seems to be much easier said than done.

Clear policies

If you want honesty and integrity from your employees, than that’s what you should also offer. Use transparency and have clear guidelines on how your company’s finances should be spent. Many employees have the feeling that, when it comes to company expenses, policies are designed in the company’s favor. It’s best to have everything clear to avoid any type of misunderstandings.

Blurred policies are the main reason why employees tend to act dishonestly, because on a psychological level, they feel entitled to it. If your company doesn’t provide a fair system of compensation, you’re facing the risk of becoming the perfect playground for exaggerated claims and low morals. Employees will fill entitled to receive some kind of “benefits”, even if they have to obtain them themselves, and not from the company.

Simple is always better

Another important factor in keeping company expenses under control, is simplifying as much as possible processing expenses. Considering most modern employees are mobile, always on the run, it makes sense to integrate an efficient expense control software, able to upload receipts and bills into a digital form, easy to send, access an retrieve afterwards.

Look for expense control software that’s user-friendly and easy to integrate with your company’s currently IT system.

Keep up with changes

Always remember that some changes are inevitable: fluctuations in fuel prices, for example, are very important when you financial department is establishing allowances for travel.

Also, make changes, if necessary, to maintain your employees happy and to keep costs under control. For instance, if your employees would get food allowance daily and now your company’s providing a catering service during lunch break, don’t forget to eliminate the food allowance from your expense policies, otherwise, there’s always going to be employees who go out to a restaurant on the company’s expense.

Choose the best software

Like stated above, expense control software is helpful to minimize expense abuse. This is achievable with the automation of expenses processes and real time reports and data, which allow companies to permanently monitor and manage company expenses.

The expense control software of your choice should allow your financial experts to focus less on bothersome paperwork centralization, and more on proper data analysis and monitoring.

Using a solid expense policy and a reliable expense control software, it’s easy to spot potential policy breaches and to identify any abnormal claims or to know how to adjust your current expense policy.

(photo: Pixabay.com, user: niekverlaan)