Many small business owners have been faced with uncertainty due to COVID-19 and it has been a challenge for employers to find their new normal in these current working conditions. As companies continue to combat these difficulties, it is important that they continue to be prepared for the unforeseeable future that the pandemic may cause.
COVID has shown us that the once predictable business operations have now become more complicated especially for those companies that do not have effective systems in place for managing their expenses. Specifically, each business must be able to manage employee-initiated discretionary spending without jeopardizing company productivity as well as employee satisfaction. According to CPA Practice Advisor, there are three ways to be successful at managing your expenses: flexibility, clarity, and automation.
During the pandemic we have seen multiple companies offer flexibility to their employees by providing a hybrid model, allowing staff to work a portion of their hours in their home. We will most likely see this model become the “new normal” for businesses as it offers a flexible solution to staff, however, new employee spending management policies and expense reporting will need to be created to ensure staff are remaining compliant.
Due to the new mobile environment, it is also important that companies provide mobile-friendly expense reporting software that allows them to be on the go and captures spending from any source. A majority of workers use a smartphone so it is important that a mobile app is available for companies to track expenses precisely and quickly.
Another key tip for managing your expenses is clarity. Leaders need to understand exactly how their business’ money is being spent and how budget decisions will be affected. In the past, some companies may have approved expenses without question, but the times have changed and it is important for employers to create clear guidelines for staff on what is acceptable and what is not.
Once expectations have been created, these should be clearly communicated with employees so they are aware of their responsibilities moving forward. Once guidelines have been set, companies need to provide oversight of spending so that they have more control over their organization.
Lastly, automation can be a strong solution for companies who want more power over spending within their business. This means less manual work for staff and more efficient processes. For example, there are systems that you can implement that will automatically generate expense reports with e-receipts which can help make managing costs less of a burden for business owners.
Expense management has always been a complicated process and the pandemic hasn’t made it any easier. However, businesses can combat these challenges by offering flexibility to staff members, by clearly defining expectations for spending and by searching for automated systems that assist with decreasing administrative hours. With the best systems in place, you will make managing your expenses a simpler and more successful process for your business.
If you would like information on how to make managing expenses an easier task for your company, feel free to contact me at 310-534-5577 or [email protected].
