Every business has expenses and keeping track of these is important both to the day-to-day running and the long-term finances of your company. However, the process of capturing expenses can be a tedious one that not many employees enjoy doing. It can also be time consuming, which takes employees away from other important tasks they are working on. We’re sharing our top tips on how to streamline your expense capturing.
Create an Expense Management Policy
Developing an expense management policy for employees to follow helps ensure everyone is on the same page. Include a list of expenses which the company will pay for, as well as a list of expenses that the company will not pay for. They key to creating this policy is ensuring that it is enforceable, equitable and that it will apply to everyone. Educating your employees on tracking best practices will also help them understand what they need to do and how to do it.
Usually whenever you spend money, you will get a receipt either in paper or digital format. These are an important part of managing your expenses, so you’ll need to keep them, capture the data, and reimburse any employees who need to be reimbursed. Doing this on a weekly basis will make the task that much easier.
Establish a System
Establishing a reporting system that provides employees with an easy way to submit their receipts will make keeping track of their expenses much easier. Many companies are opting for automated software that supports image uploads, tracking and submittal of expenses, which can often be done via our smartphones. Our accounting software www.Xero.com has an easy to use expense claim system and we love www.dext.com for submitting receipts.
Regularly Audit your Processes
By conducting regular audits, your accounting personnel will be able to track spend over time and pick up any potential problems, such as overspending or fraudulent receipts. If you catch issues early on, they won’t escalate. Regular audits are also a great way to check on what money is being spent on and looking to see if there are any ways to save money for your business.
Review Expenses Regularly
You don’t need to wait until the end of the year to do a review of all your expenses for that year. In fact, this might mean that you miss a recurring expense that should never have happened, or don’t notice an employee who regularly racks up expenses that aren’t allowed. Credit card fraud is also an issue these days and something that needs to be monitored. Regular review will won’t take as long to do and will ensure seamless expense capturing.
Need a little help?
We know that not everyone has time to effectively manage their finances, and want to spend what time they do have growing their business. Let us take care of your accounting so you can do what you do best. See more here: https://financestudio.co.za