Managing cash flow becomes even more complicated with employees that habitually overspend. So, if businesses want to have better control over employee spending habits and minimize extravagant purchases from irresponsible employees, they need to start with tracking the spending.
Concur is a global leader in the travel, expense and invoice industry, and as such has extensive visibility into business trends when it comes to employee spending. Here are four tips to help businesses curb excessive employee spending:
Be clear on budgets: Set budgets and make sure employees abide by them. Managers should empower their teams to allocate enough time to source the best and most affordable suppliers for the task at hand.
Create accountable employees: Employees should take responsibility and have proper documentation for what they spend. When overspending occurs, managers should ensure these employees can justify the extra costs, and provide education on corporate spending where necessary.
Simplify invoicing: Removing complexity from the invoice process can mitigate late payments and associated extra fees. Using purchase orders can help improve visibility into spend before it happens and provide a layer of transparency into organizational payment practices. Automated expense and invoicing solutions like Concur Expense and Concur Invoice can help facilitate and simplify these processes to minimize mistakes and late payments.
Keep a holistic view: Unanticipated situations can result in unexpected spends that can easily go overbudget. When budgeting, it’s important to factor in these potential costs and leave a contingency budget in place. If these added expenses do happen, having the right insight and tools that look at a business’ entire financial situation to help evaluate areas where savings can be found.
Providing training for employees and rewarding those with good spending habits can help foster better discipline and behaviour when it comes to overspending. Ultimately, having visibility into where overspending is happening and having plans to address the issue are critical for businesses that want to keep employee spending on track.
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