Finance

How to enforce expense policy: 5 tips

It's one thing to have an expense policy in place, but enforcing it is a different matter. Successful expense policies avoid resistance from employees by making the whole process as easy as possible.
Here are 5 tips to help you make your expense policy user friendly:

 

1. Make it easy to understand

Write your policy document in plain English. Avoid legal-esque language or anything that damages clarity. Make it a winner of a Crystal Mark Plain English award!

2. Keep it simple

Don’t make your policy rules too complicated, avoid over-use of sub-clauses and conditions. Try to keep away from tiered policies that let more senior people have higher claim limits.

3. Make it reasonable and realistic

Set reasonable and realistic limits. £50.00 per night for a hotel may not be realistic in some situations. State clearly that you don’t pay for adult entertainment of any kind including hotel cable channels or ‘live’ shows.

4. Be firm and fair

Treat everyone the same when ruling on policy transgressions or clarifying any grey areas. Make it clear that expenses fraud means instant dismissal. It's stealing from the company.

5. Support your policy with software

A good expense management system provides policy reminders when employees enter expense claims. It avoids a claimant stating they were unaware of any specific policy rule.

Want to see a sample expense policy which will help you create your own? Download our free guide ‘How can your business benefit from an expense policy?