In today’s day and age, business is not limited to the boundaries of a country. Investors look worldwide to expand their businesses in the global economy. Expense tracking is an integral part of the human resources management process. Expenses incurred by employees are a part of organizational expenses. Proper and accurate recording of employee expenses can help in planning for future expenses and tax purposes. We will briefly cover all aspects of employee tracking and approval and how a global employer of record can help to manage the entire process accurately.
Benefits Associated With Effective Employee Expense Tracking
- Prevent Fraud: It can help to prevent fraud and misuse of company funds. When employee expenses are tracked and managed effectively, there is greater transparency and accountability, which can help to determine and detect fraudulent activity.
- Cost Savings: It also helps to control costs and ensure that company funds are being used efficiently. When employee expenses are tracked and monitored, businesses can identify areas with excessive or unnecessary spending and take steps to address those issues. It results in significant cost savings for firms, improving their bottom line.
- Improve Employee Morale and Motivation: Employees may feel more trusted and valued by their employer when they know that their expenses are being tracked and managed effectively. It can increase employee satisfaction and commitment, boosting productivity and performance.
Best Strategies to Follow for Employee Expense Tracking
When it comes to expense management, there are a few best practices that organizations should follow:
- It is crucial to have a clear and concise expense policy in place. This policy should outline what expenses are eligible for reimbursement and what documentation is required.
- Expense reporting should be streamlined and easy to use. Employees should be able to submit their expenses quickly and easily and generate reports promptly.
- Critical expense information should be collected and tracked. It includes things like receipts, invoices, and other documentation.
- Accountability should be established. Employees should be held accountable for their expenses and should be required to submit documentation promptly.
- A regular audit of the expense process should be conducted to prevent fraud and abuse.
Defining Expense Report Approval
Expense report approval is the process of authorizing expenses for reimbursement or payment. It typically includes reviewing and approving expense reports for accuracy and compliance with company policy. Expense report approval can be done manually or through an automated system.
Approval Workflow for Employee Expenses
An approval workflow is a set of defined rules and processes governing how expenses are approved within an organization. The workflow typically includes one or more approvers who must stamp each expense before processing it. Approval helps to ensure that all expenses are appropriately reviewed and approved before they are incurred.
Three Different Kinds of Approval Workflow Structure
- Parallel Approval Workflow: In this workflow, all approvers can sign or stamp an expense report simultaneously. This type of workflow is often used when there are multiple approvers at the same level.
- Sequential Approval Workflow: Here, each approver must sign or stamp an expense report before it can move on to the next approver in the sequence. You go for this type of workflow when there are multiple approvers with different levels of authority.
- Customized Approval Workflow: Here, the approvers can be configured to sign or stamp an expense report in any order. This type of workflow is adapted when there are multiple approvers with different levels of authority, and there is a need for flexibility in the approval process.
Role of Employer of Record
An EOR handles global payroll taxes and other HR-related tasks for your employees’ better management. This can be a great solution if you have employees in multiple countries, as the EOR can handle all compliance issues.
Employer of record helps in employee expense pursuit in international payroll services by providing a centralized system for managing employee expenses.EOR for employee expense tracking allows organizations to see all expense claims in one place, making it easier to track spending and identify potential issues. In addition, the employer of record can provide advice and support on employee expense claims, helping to ensure that they are legitimate and compliant with company policy.
Another benefit of using an EOR is that they can often help you to get your expense reports approved. EOR is helpful because it will understand the compliance issues involved in your employees’ payroll. As such, they can help to ensure that your expense reports are in order and compliant with the relevant regulations.
Choose the Best International Payroll Outsourcing Services
Selecting an employer of record as your method of business management will undoubtedly help you much. However, whether or not the firm is capable of enabling all of those benefits for your organization is still dependent on the firm you select. For this, it is critical to select an employer of record business that is efficient and knowledgeable in its field. We are one such top-tier organization that can give exceptional employer of record services such as employee time tracking or expense tracking to anyone looking to build their business within the UAE. If you have any questions, please contact our professionals for the best advice and assistance.
With a vast experience of 10 years, Jean Rodas is a specialist in managing all aspects of Payroll and HR. Within Payroll, she has comprehensive knowledge in areas such as computation of final settlement, payslips, WPS registration, salary transfers, leave trackers, and end of service benefits among others, which she has successfully carried out for clients from diverse industries.