How do I make sure my employees are doing their expense reports correctly?
A time-consuming process for employees and finance teams alike, managing and preparing expense reports is an inconvenience that becomes more so as your business grows. By streamlining the process, you can ensure accurate reporting and efficient employee reimbursement.
Consider these steps to refine your expense reporting process.
1. Create expense policy guidelines
Clearly explained steps and processes for all aspects of the expense reporting procedure, such as an employee expense policy, together with examples of correct reporting will save time and reduce disputes. For example, consider setting rules that receipts or documentation is required for all expenses above £20. Consistency will improve morale and reduce debate.
Keeping receipts is vital, as no matter how much you may trust an employee, it is difficult to merely take their word for expenses. Moreover, your accounting practices will require receipts for all expenditure above a specified amount. As such, there must be evidence obtained from an employee’s expenses, with receipts submitted to the finance team.
Our expense management solution reduces the time required to manage receipts for all parties. The Soldo app enables employees to photograph receipts immediately; meaning loose receipts are no longer required, and no receipts are lost before submission.
2. Simplify the process
With simple forms and processes in place, employees will be more inclined to follow the correct expense claim procedure. Try to avoid free-form entry or complex systems, instead utilise drop-down choices on most options for expense forms and offer any explanations for fields that may require it.
With our dashboard, you can further reduce the time spent on managing expenses. The process of submitting expenses can take up employees’ valuable time while verifying expenses similarly consumes finance team resources. The Soldo solution automates employee reports, and the Soldo dashboard provides finance teams with real-time access to the information, together with extensive reporting and analysis.
3. Educate employees
Provide your employees with adequate training on expense reporting and equip them with a copy of expense guidelines and policies, ensuring that this is included in induction training. Make sure that employees are aware that every expense submitted is a direct outlay for the organisation and that they should act prudently, spending only as and where necessary.
Expensive meals out soon equate to large bills; each team member should be aware of their responsibility to act sensibly with the company’s money.
4. Exert full control using prepaid business cards
A prepaid business card ensures financial responsibility among team members while improving budgeting skills. By using the Soldo prepaid card, you can manage limits and policies on spending for individual card users, thereby enforcing company guidelines.
This is in sharp contrast with the limitations of traditional business credit cards wherein there is little or no real-time spending information, limited control over credit limits and no control whatsoever over expense policies. The Soldo prepaid Mastercard can be provided to individual employees as needed, using our dashboard to set each card’s spending rules and limits.
The Soldo dashboard also tracks company spending in real-time, giving finance teams the power to freeze a card and order a replacement if it becomes lost, in addition to the ability to transfer funds and refine spending criteria with immediate effect.
5. Ensure accuracy of expense reports
Spreadsheets can be useful for expense reporting, especially if your organisation runs on inflexible cash flow. Although not the most efficient choice, they can be effective if completed diligently. Templates can be downloaded and customised or built internally with some fields locked so they cannot be changed, such as the total or VAT formulae.
When completing an expense report, employees must ensure that all data required is clear and complete. Notes should be added where appropriate to include detail, such as the purpose of business meals, and any other entertainment expenses. This will make the reimbursement of funds more efficient as incomplete reports will simply cause delays.
Our solution automates the creation of expense reports based upon the use of the prepaid card, reducing administrative overhead for staff and providing real-time expense reports for the finance team.
By using our spending management solution – the admin dashboard, mobile app and prepaid business card – you can define your employee’s budgets ahead of time, oversee all transactions in real-time and transform data into valuable and actionable insight.
This eradicates hours of manual reporting for employees and checking for your financial teams, allowing them to focus on tasks with greater value. Please visit us here for more information.