Are you struggling to stay on top of employee expenses? It can certainly be a difficult thing to manage. Luckily, there are some solutions that will help make the process less complicated and time-consuming.

If you are a remote digital agency looking for help with monitoring employee expenses, take a look at some of these top tips below to get you started.

Create An Expense Policy

To successfully manage employee spending, you firstly need to create an expense policy. After all, how are you going to monitor expenses if there is no precise management of them in the first place? Your expense policy should highlight examples of good and bad company spending. Try not to overcomplicate the policy. You want your employees to understand it, so keep it clear, concise and straightforward. Instead of listing every possible expense that you deem preproperate, stick to guidelines. These are much easier to understand and less tedious to read. You can learn more about what an expense policy entails through some online research.

Virtual Company Cards

Virtual credit cards are continuing to rise in popularity with business owners. With their many benefits, it is clear to see why. You may be wondering, what is a virtual company card? Payhawk are a company that can help you answer that question. Their virtual visa company card is a digital card with a unique 16-digit number that is digitally generated and tied to your company credit account. Your employees no longer need to feel the pressure of looking after a physical card.

Monitoring your employee expenses using virtual cards give you more control. You can enforce spend rules in real-time during every swipe. Not only can you monitor what each employee is spending, but you can also set spending limits and only allow money to be spent in specific categories. This is ideal if you have an employee who abuses their company card responsibility. You can restrict their account in an instant.

Set A Maximum Budget for Each Expense Category

If you want to stay on top of your employees’ expenses, it is crucial that you set maximum budgets in place. Not only will this stop your employees from overspending, but it also forms a boundary, so individuals know what is expected of them. Firstly, look over the categories included on the company card. For example, you may class a work expense as a business trip, hotel stays and restaurant bills. For all of these categories, you should determine how much each employee can spend. If they pass this limit, it should be made known to them that they will not be reimbursed. To help you, it is worth researching some everyday business expenses to help steer you in the right direction.

Monitoring employee expenses is vital for any business. Not only does it help you stay on top of your finances, but it also helps the company avoid financial turmoil in the future. With the help of spending limits and virtual credit cards, you will be well on your way to having an effective system in place.