In some companies, the Employee Expenses management are difficult, quite often, do adequately comply with the rules set down to keep the company policy.
As often happens, there is one employee, who making use of lack of control that may exist, abuses.
Alarme Signs in Employee expenses management
There are several alarm signals that can help us identify the employee who is going too far:
Employee expenses management: Significant difference with coworkers
All employees of the same group or level in the company, should have similar expenses. If an employee's expense notes are two or three times the amount of those of an employee in a similar position, they should be analyzed over a period of two or three months.
There are also measures that can help make the expenses more transparent, such as giving the number and names of the guests at business lunches and dinners, in this way it is possible to clearly see who are the potential clients or strategic partners.
Employee expenses management: No relation with employee activity
At times it is not clear to what point you should go in the comfort and conditions of the employee on their trips. The employee should enjoy a comfortable stay, but perhaps an hour of massage is not a decisive element in the reaching of the objective of the employee's trip.
There are bosses who allow certain "extras" as a type of incentive, but this ends up in a type of "limbo" where the limits are not clear. It is much better to separately organize an adequate initiative program and not to mix concepts that can later lead to conflict and frustration for everyone.
Employee expenses management: Permitted but inflated costs
It is in the small costs, where, quite often, an exaggerated cost catches the eye. A taxi from the hotel to the airport increases from 20$ to 35$. The cost of a locker for luggage , or the stay in a business centre for a few hours work suddenly becomes more expensive.
Even though at times it may be a bit bothersome, it is important to ask for the receipt and proof of all costs.
Employee expenses management: Dates and concepts that don't fit
The company can account more easily the employee expenses if they are paid by credit card, and for the employee it also has advantages, it can mean not waiting on the company to payback the money.
However, it is a fact that there are employees who use the credit card for costs which appear to be permitted, but take place on dates and hours outside of the employee's working hours. Or there could also be expenses which cannot be justified within the employee's professional work. To avoid this , it helps to review the credit card operations and carry out a careful auditing in the cases that are a little outside the normal.
Employee expenses management: Double cost
Some employees use their credit cards, but then record the expense again as cash on the expense sheet they submit to the company for reimbursement.
It is clear that a certain control must be conducted on the credit card operations, but it is also necessary to compare the expenses that the employee is claiming as paid in cash.
Expense policy must be based on the principles of communication and transparency, and companies and their employees must know that these items are being monitored. Some of these warning signs are not easy to detect or follow up on without a proper Employee Expense system. Intelligent, well-structured automation can help, provided it includes this form of expense monitoring.
