Now that the department head will view the expense report, attach receipts, and pass it on if everything is fine as per the policies, or else the head will reject the claim. Let's say an employee or purchase department makes an expense now, they create the expense report, attach the bills or payment receipts with the expense, and submit it to their respective department. Now let's see how the expense management process works: This type of policy helps tighten the company's expenses and miscellaneous expenses. In this case, the employee gets reimbursed if the price is under ₹10,000. It is a type of term or you can policy added by the company. If the price goes above that, the claims get rejected. They had certain conditions to the policies and terms so that no employee or management could take advantage of expense policies.įor example, if an employee is meeting with a client in a restaurant for a certain deal, the restaurant bill can go up to a maximum of ₹10,000. It includes all the purchases, employee reimbursements, bills, and other expenses. How does Expense Management Work?įirst, the company management drafts the policies for the expenses that are relevant to the company. It helps to summarize all your expenses by creating the reports and focusing on where there is a scope for improvement. It also helps in maintaining the accounts and balanced set of the company. It becomes hard for employees and companies to reimburse the expense incurred. If expenses are not recorded properly, the organization will never know the improvement they need to work more efficiently and cost-effectively. Managing expenses for your company is important as it can make or break your business finances instantly.
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