The reimbursement of costs advanced by an employee as part of a professional expense is an obligation of the company. As expense report management is most often tedious with incomprehensible regulations, lost receipts and overly complex management software, the reimbursement process tends to get complicated and slow. In this guide, find some tips for better controlling expense reports.
Digitize expense reports
In recent years, many startups have offered companies solutions that automate expense reports. These innovative solutions consist of using, for example:
- A credit card virtual with monthly limit
- Mobile applications to take photos of receipts for catering and travel expenses.
- A payment card corporate linked to specific software, as is the case for Mooncard. For more information, see www.mooncard.co.
- A connecting system company, travel agency and payment agency to facilitate the management of business travel.
Adjust the company's expense policy
To adjust the expense policy, it is essential to study your expenses. To do this, simply calculate the average amount of expense reports. The amount of expense reports per employee is 450 euros on average. This amount depends on the business sector of the company and the position held by the declarant.
To correct excess, you can cap the amount of business meals. For example, you can cap meal costs at 1.5 times the average price for a decent meal. You can also limit the use of vehicles staff members by setting a mileage threshold for trips: 200 km, 250 km, etc.
Check expense reports from a certain threshold
To detect possible errors or fraud, isolate the most expensive expense reports. Record the lower amount of these and consider it as the threshold from which you will systematically check expense reports. This way, you'll have the most spendthrift workers in your sights and make sure they play by the rules. To get to control and manage at least 75% of employee expense reports, you can also make random prints.
Many companies are content to recover VAT rate on business meals with suppliers and customers. Yet it is also possible to deduct it on catering costs during business trips.
Do not wait until the end at least to process expense reports
Imposing deadlines for the validation, posting and reimbursement of expense reports greatly facilitates their management. Not only is it a way to reduce the risk of control errors, but it also makes the work of the accountant easier as the end of the month approaches.