Still don’t have a written expense policy? Do not worry, you are not alone. Many businesses and startups overlook this item at the beginning. Initially, it may seem unnecessary because there are not a lot of travel and expenses incurred and, if there are, they are mostly incurred by a select few people.
However, as your business grows, you will notice more of your staff are either requesting reimbursements or you are having to add more employee credit cards to your account. Worse, you may begin to be concerned that your employees are over-spending on certain expenses. This not only instills a lack of trust in your staff but also makes it difficult to budget. That is when it is time to rein in the spending and begin drafting your expense policy.
A good expense policy offers many benefits. It will help with training and provide an established process for new employees. A good policy reduces confusion about what kind of expensing and spending is acceptable. And, a big benefit from an accounting perspective: an expense policy will help with budgeting and forecasting. Are you sold yet? Use these tips we have compiled for when it comes time for you to draft an expense policy.