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How to Enforce an Expense Policy

By: Toffer Grant

 

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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.

Related Article: Should I Expense This? Business Expenses vs. Personal Expenses

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.
Published: July 27, 2015
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Source: PexCard

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Toffer Grant

Realizing that banks and card issuers were not serving the development of prepaid debit card services for small and mid-sized companies, Toffer Grant founded PEX Card to help SMBs maximize the efficiency of their financial operations. His career in the prepaid card industry began in 2000 at Clarity Payment Solutions, a leading venture-backed platform company servicing the budding prepaid industry. Toffer focused on customized check to card payment conversions for large brand corporate clients and grew a high value reseller network for the company. Over six years, he initiated 65 prepaid card programs in consumer, corporate and emerging verticals of the prepaid card industry.  Toffer saw the company grow from a tech startup to life in a large public company after acquisition by TSYS in 2004. Follow Toffer on LinkedIn and PexCard on Twitter, Facebook, and LinkedIn.

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