Benefits of an Expense Policy
Now that we have taken the pain to create a document, we need to understand its relevance as well. With a well laid out expense policy the following can be achieved:
• Insights into spending trends
With proper policy in place, employees can spend only in allowed categories and spending is easier to monitor among the defined categories
• Decrease in unnecessary spends
With pre sanctioned categories, spending on unnecessary products or services can longer be done as the policy simply does not allow them
• Increased Turnaround Time (TAT) of reimbursements
As employees know what all to submit for their reimbursement, rejections rates are reduced leading to satisfaction of employees
• Decrease in fraudulent claims
As expense policy would be clearly covering this segment, any attempt to do so will result in clear penalisation, leading to employees abiding by the document and not attempt anything detrimental to the business