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, so 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.
Headquartered in Cambridge with regional presence in Kettering and Milton Keynes, Aspire Cambridge provide cost effective Recruitment and HR solutions to an impressive portfolio of customers spanning the UK and Europe. Working with a diverse collection of industries from start-ups to blue chip companies covering a vast range of sectors. Aspire Cambridge has an unrivalled knowledge of the jobs marketplace so it’s no wonder that they hold an impressive track record of exceeding client and candidate expectations.
How do they do it? By “Placing People First”.
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