How can I create a responsible expenses culture? 

At Expend, we are experts in helping you improve the efficiency and effectiveness of expense management in your business. There are several aspects to managing expenses appropriately.  

It’s always important to have visibility of what’s driving expenses across your organisation.

Create an expense policy

The first step in managing your employees’ business expenses is to create an expenses policy. Whatever type of organisation you help to manage, the fundamental elements of an expenses policy will be the same.  This will be the foundation of your approach. And whilst this will describe the rules and controls regarding your expense management, it’s also important to consider the wider expenses culture in your business. 

A clear expense management policy will demonstrate ‘what’ you aim to achieve but think also about the culture – ‘how’ you want to achieve the policy.

There are a number of elements of your expense management policy which can help towards a responsible expenses culture.

Establish fair limits on expenses

Expense management is designed to reimburse your employees for business related purchases they make from their own pockets. So, consider how you can make your policy ‘look fair’ and ‘feel fair’, which will help to encourage responsibility and discourage resentment, abuse or fraud. 

For example, take a look at the various allowances and limits within your policy. Have these kept pace with the cost of living? Are you ensuring that your employees are not left out of pocket with items such as meal allowances or overnight subsistence rates? 

Simplify your expense claims process

It’s important to make your expense claims process quick and easy for all colleagues. A complex claims process can cost valuable time, from the perspective of the employees who are claiming, as well as the finance team who need to check claims and chase up missing or contradictory data. 

Expend can improve the efficiency and effectiveness of your expense claims with a range of solutions designed to reduce the time, effort and hidden costs associated with a traditional expense claims process. 

Keep your employees at the heart of your expense management process

When your employees spend their own money on behalf of your business, they are helping your firm to operate. So, it’s right that you keep them front and centre of your expense management process. 

The Expend Mobile App helps your teams to submit their expenses via their smartphones, and, by photographing and submitting their receipts at the time of purchase, there is no need for a claims form. Expenses are automatically approved and submitted to your company accounts via Xero, Quickbooks or alternative accounting softwares.

And Expend’s Employee Cards mean that you can equip your colleagues to spend on your company’s behalf, with automated approval and spend limits to provide complete control.

So, the expenses culture in any business is a two-way street. It’s important to make your process secure and controlled, but it’s equally important to consider your employees’ needs for ease, speed and prompt reimbursement. 

We hope these tips will help in your plan to create a  responsible expenses culture. 

Disclaimer: This is not legal, accounting, or tax advice - it's simply a guide. If you need help, check with your accountant or contact HMRC directly.