4 Tips for managing the Expense Process correctly



Even with the development of technology, companies are still using a manual expense process to record their company expenses. This leads to confusion and creates issues during auditing.

We have come up with 4 tips to help you manage your expense process correctly.


1) Begin with a clear and precise expense policy

It's so important to have a clear-cut expense policy to guide the employee through a transparent expense process. Companies are obligated to create a legally binding policy to signify to the HMRC and themselves that the expenses being compensated are not for inappropriate or personal expenses.

How can we help you?

Our HR Consultants can review company documentation to ensure you are fully up to date and legally compliant. We can create your expense policy to save you time and effort. Our workforce management software has an area where all employees can access the policy to remind them of what they are able to claim as an expense.

 

2) K.I.S.S (Keep It Straight and Simple)

With expenses, the old acronym – K.I.S.S (Keep It Straight and Simple) – applies. People are more likely to comply if the process is straight and simple. If your systems are overly complicated, it'll have a demoralizing effect on the employees trying to claim.

How can we help you?

MP HR Services offer an HR software that is user-friendly, cloud-based and has been designed to save you time in all your processes. You can access the software from any device or by using our IOS app to allow your employees to add their expenses while they are on the go, making the process simple and quick to do.

 

3) Gather enough relevant information and submit/approve in a timely fashion

Companies need to be asking for receipts, not because they don’t trust their employees, but because the HMRC requires receipts as proof of expenditure. It is also important to do this promptly and to have a clear, published timeframe for submitting expenses. When employees delay claiming their expenses for months, not only does it put them out of pocket, it also causes cash-flow challenges for the business and creates a nightmare for the accounting department.

How can we help you?

MP HR Service’s workforce management software can add receipts as well as store them with your expenses. This can be done on your computer at the office or, if you are out and about, the IOS app allows you to take photos of the receipts and upload them onto your expenses so you don’t have to worry about forgetting to take the receipt in to work. This freedom means less delay in submitting the expenses as you have all the tools at your fingertips anywhere and anytime.

 

4) Make sure Managers have out of office access to submitting and approving expenses.

With managers out of office, at meetings or overseeing other projects, it becomes increasingly difficult for employees to get their managers to sign off on their expenses. The best processes are when a system is put in place to allow managers to check and sign-off on expenses while they are out of the office. A tool that allows this moves the process along and cuts down on delays if they can access it from anywhere.

How can we help you?

MP HR workforce management software will allow the employee to submit the expenses from any device wherever they are but before it goes through to payroll, the manager receives a notification to accept or decline the request. The software will ask the employee all the relevant information and will allow the manager to view the receipt meaning that they are able to make the informed decision on whether the expense is compliant. The manager is then able to accept or decline this request from their device on the go.

For more information or to book a software demo visit: https://www.mphr.co.uk