You likely have some guidelines in place for expense reporting, but have they kept pace with changing business realities? If not, it’s time for a refresh. When making the case for such an initiative, CFOs should point out that organizations that effectively track and manage  employee expenses can:

• Take full advantage of tax deductions. By maintaining the right documentation for the right period of time, and ensuring that all deductions are valid, companies can be confident they can take all the deductions allowable and have the correct level of reporting for the IRS.
• Develop more accurate budgeting and forecasting. T&E expenses make up a large portion of the average company’s operating budget. When these expenses aren’t properly tracked and processed, that can interfere with a CFO’s ability to accurately budget and forecast for the future.
• Manage expenditures. Not knowing how much people are spending while they’re out on the road (or at home) working makes it hard to manage cash flow effectively. With improved oversight in this area, you’ll not only know who is spending what, you’ll also have more control of these expenses, making it easier to prevent employees from abusing the system.
• Minimize business expense fraud. Occupational fraud includes overstating business expenses, submitting fraudulent records and other abuses that can be curtailed through good oversight, policies and controls.

Want to learn more? The Vested Group has compiled the 6 Expense Management Best Practices for you and your business. If you have any questions or want to learn more on how to help your business fight inflation, The Vested Group is happy to help. Feel free to reach out to us today.