As a business owner you will have lots of tasks and challenges that need dealing with, one of those tasks could be with an employees expenses.
Employees are within their rights to be reimbursement for business expenses which are necessarily and reasonably incurred during the course of their employment and therefore it is important that you have a clear process for them to do this. Here at aspire cambridge, we’ve put together some tips for you to consider;
How to Manage Employee Expenses
- Clearly communicate with your employees on the expenses policy in a simple way stating what they can claim for, when and how. This will enable expenses to run smoothly and employees will be encouraged to ask questions.
- Consider if it would be more appropriate to issues expenses credit cards for individual employees so that they don’t need to pay for goods out of their own pockets, but they are still encouraged to budget accordingly and take ownership of financial matters for their department.
- As providing company credit cards remind the employee of the expenses policy and make them aware that you or your finance director will be monitoring the card accounts to ensure that abuse of the system is prevented. Ensure they understand that the card is not to be used for personal use.
- Ensure that your line managers approve any travel, entertainment or accommodation booking in advance
- Ensure that the employee provides original receipts with their expenses form
- Ensure that any mileage forms are supported by a completed mileage record sheet, giving full details of the journeys involved and the reasons for them
- When thinking about fuel and business entertaining bear in mind that this is a potentially high-risk area. You need to ensure that employees with these expenses are aware of the limits of fuel, food and drink (especially alcohol) and they abide by these limits. You can even block certain type of purchases on company credit cards if you choose to do so.
- If you have employees that use a company credit card which could accrue benefits or rewards, these actually belong to the company and should not be used by the employee for their own personal use.
Gov.uk can provide you with more information with regards to your responsibilities on topics such as reporting, deadlines, record keeping, exemptions and dispensations.
By ensuring that your employees have a copy of the expenses policy in writing you can ensure that expenses are handled and reported in the right way.
If you have concerns about employee expenses or need to know more then please feel free to give our HR Consultant a call on 01223 855441. We will be only too happy to help put your mind at rest so you know you are doing right by your employee and your business.