Some of your company’s expenses, such as office supplies and meals, may seem small, but they tend to add up to quite a bit over a short period. This is particularly the case if you don’t have a reliable system in place to track spending. Failing to accurately manage expense reporting can not only lead to liquidity problems, but it can also impact your bottom line results. Here three top expense reporting tips that will help your business with better financial management.
Create an Expense Reporting Policy
Every business should have an expense report policy. This is something that is disclosed either upon creation or when an employee is hired, with the requirement that employees sign the policy as an acknowledgment. The policy will outline what qualifies as acceptable company expenses as well as how expense reporting is handled. Companies can specify such things as the maximum amount to be spent on travel, mileage rates, coding of expenses, and deadlines for reimbursement requests.
Address Issues Promptly
Without strict expense reporting standards and oversight, there’s a good chance your company will see some requests to reimburse things that have no business on an expense report. Commonly cited examples include vacations, rent, and new cars. These issues should be addressed as quickly as possible so that employees thoroughly understand the expense policy and your company can eliminate wasteful spending.
Use Expense Reporting Software
Recording expenses manually can not only be tedious, but it is also prone to error. One way to control expenses within your organization is to modernize your system and use an expense reporting software program. A software program can streamline your process, quickly spot red flags, and give your company’s management more time to focus on other projects.
Even with expenses under control, successful businesses require liquidity and access to capital. Find out how Bull Market Capital: Business Funding Solutions can help your small business achieve its financial goals.