Mention employee expense policies, and you are often quick to receive a groan from staff. Employees, particularly ones who travel frequently, don’t enjoy being limited in where they can spend. However, creating and enforcing an expense policy is a requirement to curbing unnecessary or extravagant spending, and maintaining harmony among staff.
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So how should business managers go about enforcing an expense policy? Here are some things to keep in mind:
- Make sure all employees have access to a written expense policy.
- Before employees make purchases on behalf of the company, discuss payment options and policies.
- Outline detailed business travel policies. Some things to consider: preferred hotels and airlines, room rate caps, and frequent flyer miles/point ownerships.
- What happens if employees abuse an expense policy? Make sure they know the repercussions.
- Enforce itemized receipts, when possible. Employees will be less likely to bend an expense rule when they know the exact item will be seen by their manager.
- Use an expense reporting system into which you can input your policies—and flag items of concern. One great automated system is Tallie.