We hear from many small businesses that they need greater visibility into and control over what their staff is expensing, but don’t know where to start. The answer is simple -- a travel and expense (T&E) policy. This policy governs what can can and can not be reimbursed, and at what rates. Many businesses start off with informal rules passed on like a game of telephone, believing (or hoping) that employees will make sensible decisions. But that puts pressure on your staff who are left to second guess right from wrong.
A $50 bottle of prosecco?
That’s simple sales entertaining, right? What may seem acceptable to one business, could be senseless spending to another and it’s hard to tell where to draw the line. Then there’s the dilemma of different rules for different employee roles. Some departments may get away with excessive expenses while others feel the pressure to control their costs? Is it fair?
What will a T&E policy control?
For any business looking to introduce fair rules and processes around what employees can reclaim, a T&E policy is your first port of call. Here’s some details around what a good T&E policy will include:
- The rate of reimbursement for business mileage travelled by car
- The maximum amount you can reclaim for air travel and what cabin employees may book
- How much you can reclaim for meals while on business
- The maximum price of a hotel stay depending on the city you’re in
- If there are preferred methods of booking business travel such as a corporate booking tool (you may have negotiated rates)
Every business will have different requirements and unique situations that call for different costs that are incurred. For that reason, you’ll be best placed to stipulate what the parameters are. The problem is that many companies don’t have a framework in place giving guidance to their employees. Where do you start?
Create an expense policy in a few clicks
That’s why we built this simple expense policy tool for you. All you have to do is input your rules in a few categories to create a customized policy for your business. There are just six questions and it will take about three minutes to complete. What you’ll get is a fully customizable expense policy template that you can edit and make your own.
And if you already have a policy, you can use it to ensure you are up-to-date with some of the latest rules and you have all the boxes checked.
Try our expense policy builder today!