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Taking the pain out of expenses

Creating an expense policy can be a time-consuming process; but when youconsider that almost 20 percent o T&E expenses all outside o policy1, it makes

sense to invest the time and eort. Here are some tips and a template to help

you get started.

1. Ditch the jargon

Write the policy to cover the basics but dont be araid to revise it later; it probably

wont be perect on the rst attempt, so remind people to use common sense. Also,

be sure to edit your policy or clarity beore its published. Double-check that its

easy to read and not bogged down in jargon. The easier a policy is to understand,

the easier it is or your employees to ollow.

2. Make it air

No one should have to pay out o pocket i they spend sensibly. Create a policy that

is generally regarded as air and then make it easy to nd and ollow.

3. Invite participation

Get buy-in rom your sta beore you implement the policy. Ask team members to

participate in the process. I they help develop the expense policy theyll see why its

necessary and will be more likely to stick to the rules and encourage others to do

the same.

4. Use sensible, localized rules

Sometimes a one-size-ts-all policy wont work across an entire company. Write your

policy to guide behaviour, but be fexible enough to adapt to local requirements

such as higher hotel costs in more expensive cities. You could include a table o

acceptable regional rates or use a system that fags out-o-policy spend at the time

its booked, to avoid unpleasant surprises later in the expense-claim process.

5. Make it at

Unless there is a very good reason to have dierent rules or dierent people,

create a policy that applies to all employees across the company. Keep it air and

simple. All-encompassing policies are also easier to implement, manage and control.

6.Make it easy to fndEven the most air and equitable policy wont be ollowed unless people know about

it. Make sure yours is visible. Email it to employees, put it on your noticeboards or

intranet, or print a copy or every sta member.

1 Travel & Entertainment Expense Management Report, Aberdeen Group, August 2006

11 Tips for Creating an Expense Policy
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7. Emphasize the positives

Implementing a new policy will require a period o adjustment or employees. You might

hold a training to explain the reasons or implementing/changing the policy so that

everyone understands its benets and purpose. I theres a policy in place that everyone

understands, the chances are it will be easier to approve submitted expenses.

8. Help managers lead by example

Since almost 20% o all submitted expense claims contain out-o-policy spend, its

sensible to ocus on reducing that percentage.Managers who approve expenses are your rst line o deense in the expense-claim

process, so its good to get them on your side. Setting management targets or

policy compliance can drive down the number o out-o-policy claims. Similarly,

amiliarizing managers with the content, the importance o compliance, and the

reasons or implementing the policy can help them condently enorce the rules.

9. Remember its emotional

Consider the emotional side o expense claims. Employees are usually spending

their own money when they pay or expenses, so they will want it back as soon as

possible. A good system makes it easy or employees to submit their expenses and

receive status updates; it also speeds the payment process.

10. Consider helpul sotware tools

Implementing an expense policy is a rst step, but it shouldnt end there. Once you

have a great policy, you might want to consider using time-saving tools to manage

the entire expense-claim process.

Turning your paper-based expense process into an automated one will soon provide

real cost savings. You can take advantage o ree trials to test the sotware tools

beore you commit to buying. Most providers will be able to demonstrate a rapid

return on investment.

Moreover, implementing an automated solution will save time and allow you to ocus

on your core business.

11. Leverage existing technology

I your employees are using smartphones, youve probably already invested in

mobile hardware; i this is true, make sure you choose a solution that works

with your existing mobile devices and allows or the submission o digital and

photographed receipts.

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An Example Expense Policy Template:

At its simplest, an expense policy should cover the ollowing categories:

1. Statement of purpose

2. Company expectations and policy compliance

3. Areas of ambiguity

4. Subject areas:

a. travel

b. travel-related expenses

c. accommodation

d. ood & entertainment

e. other expense types

The ollowing pages provide a more detailed explanation or each category, as

well as examples o language you can use when you create your own template.

How to use the template:

Read the notes in the center column.

Then use the headings in the let column

to create your own document. Feel ree

to copy or edit the examples to suit

your needs.

Please note:This is not a legal documentits a

starting point.

The values included on this policy are

only approximate guidelines, but you

can check the amounts against your

industry sector, company size and

employee averages.

Section Explanation Example wording

Statement opurpose

Why is there an expenses policy?

Set some basic guidelinesmake it actual, not

scary. Include:

Who the policy applies to (managers

and employees)

Date o policy implementation

This expense policy applies to all employees o (insert companys name

here; e.g., Our Company) when they travel or business purposes or incur

business-related expenses.

Please also reer to the ollowing company documents:

HR policy

Travel policy

Companyexpectationsand policycompliance

Write a brie note here to explain:

What the company will do to help people

claim expenses

What the company expects in order to

reimburse employees

What happens i they ail to comply w ith policy

When you incur or submit expenses we expect you to:

Behave honestly, responsibly, and within the guidelines o this policy

Submit expenses within 30 days o incurring them (to help you get paid

more quickly and support our nance teams needs)

Keep all your receipts

We take this policy seriously and expect you to do the same. Breaches o

policy may result in disciplinary action or termination o emp loyment.

Areas oambiguity

This section explains common areas o

ambiguity/conusion, such as:

Who authorizes expenses

How quickly they are reimbursed

Who pays (when more than one employee

is present)

Your manager should authorize all expenses, but i its not possible, their

manager may also approve expenses.

I youre traveling/incurring expenses with other Our Company employees

the senior person should always pay.

I you are in doubt over whether an expense is in policy, ask your manager.

When you submit the claim, provide written justication in the space provided.

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The nitty gritty: types of expenseswhats allowableThe main body o your expense policy shou ld cover the standard expense categoriescomplete w ith rules about what is or isnt permitted.

Travel This section should cover the basics,such as:

Which suppliers (i any) are preerred.

Which booking methods are preerred

(e.g., via a chosen travel agency vs.

through an integrated travel booking

system) or

air travel

rail travel

rental cars

mileage

What range o ares are acceptable; e.g.,

lowest logical are vs. always cheapest.

It should also include a section on:

The use o company cars

The use o personal cars or business

Mileage reimbursement rates

How ar out o their normal commute

must people travel to be able to

claim mileage?

Insurance (is this covered by the

company or must individuals

insure themselves?)

You might also include answers to

these questions:

Do you encourage use o

sustainable transport?

When is it okay to take rst class or

business class?

Does public transport take

precedence over taxis vs. personal

cars? I so, when?

How ar in advance must trips

be booked?

Is pre-approval needed beore

employees book travel or only i the

cost is over a certain value?

This travel section o the policy covers the various ways we think people at Our

Company are likely to travel in the normal course o business.

I you are traveling in a way that is not covered by this policy or have questions

that are not answered here, talk to your manager and include a note with yourexpense claim when you submit it.

The policy includes inormation about how and when you should t ravel by car,

air, train and taxi. It includes details about our commi tment to sustainable travel

options as well as the importance o choosing the lowest-priced logical method o

transport available at the time.

Please note: All bookings should be made through our travel agent XYZ Travel.

Travel that is not booked at least 3 days in advance will not be reimbursed withou

approval rom the CEO.

All travel should be booked in standard/economy class. You are welcome to use

your own loyalty schemes, as long as this does not prevent you rom booking the

lowest-priced logical choice available.

Personal travel may be combined with business as long as there is no additionalcost to the company.

(Other applicable company- related details should be added as needed here.)

Cont. overl

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Travel-relatedexpenses

This section should be a list o travel-

related expenses that are acceptable

and in policy.

The ollowing travel-related expenses are acceptable and Our Company

employees will be reimbursed or these expenses:

Baggage (no more than 2 bags) and advanced-seat bookings

Parking

Foreign-currency charges

Visas

Tips (up to 15%). This does not apply i the tip has already been included in the bill.

Use o a GPS with rental cars or driving in unamiliar territor y

The ollowing travel-related expenses are not acceptable. Do not put these on

your expenses claim:

Laundry service/dry-cleaning (unless you have stayed or business or more

than 4 nights)

Mini-bar contents

Movies/videos

Parking nes

The loss/thet o goods (this should be covered by your own travel insurance

o which you can reclaim $170 annually)

Childcare

Petcare

Any personal elements o your business trip

Personal car maintenance or damage to personal vehicles while on business

Spa treatments and health/tness clubs

Toiletries


Accommodation Any preerred booking methods (e.g.,through a travel agent online booking

tool) or preerred suppliers should be

listed here.

It could also include instructions

regarding reimbursement i people stay

with riends/relatives.

When booking hotels we expect you to use our preerred hotels.

The maximum we will reimburse per night is $160 + taxes (or examplebut this

depends on region). This amount does not include meal costs.

You are responsible or all hotel cancellations and or reclaiming reimbursements

(less cancellation ees) rom the hotel directly.You must always indicate your overnight accommodation location so we can

comply with Duty o Care requirements. Either inorm your manager or share you

travel itinerary with your manager using TripIt. I your manager is not working

when you are traveling you must inorm their replacement. I this is yoursel,

please tell HR.

You are not allowed to upgrade your room while traveling on business with

Our Company.


Food &

entertainment

This section should set limits on

meal prices, explain what is covered

by a per diem, provide guidelines onwhen to claim meals and explain any

other ambiguities surrounding

ood/entertainment.

Our Company will reimburse employees or all meals while theyre travelingup t

$10 or breakast, $15 or lunch and $25 or dinner.

Client meals/entertainment costs may be higher. All entertainment claims must

include the ollowing details: business reason, venue name and location, name

and company o all attendees.

Alcoholic drinks may only be claimed i consumed w ith a meal.

Unless you are entertaining clients, in order to claim meals/ood you must have

met the ollowing conditions:

Youve been away rom the oce or more than hal a working day

Youve traveled more than 5 miles rom the oce/your home

You may claim or breakast i your journey started beore 7:00 am.

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Otherexpense types

This section should be

a list o other expenses

that are acceptable and

in-policy

The ollowing expenses are acceptable and Our Company employees will be reimbursed or them.

Proessional membership ees (where these enhance the standing o the individual and by

association, the company)

Hotel internet ees

Postage or business purposes

Mobile data-usage ees when traveling abroad (provided it has been pre-booked)

Personal phone calls (up to a reasonable limit)

The ollowing travel-related expenses are not acceptable. Do not put these on your expenses claim.

Computer/other equipment

Magazines/newspapers (unless essential or a justiable business purpose)

Want more help? Just ask!

Concur is an industry leader in expense management solutions. With nearly 20 years experience

in this eld, you can trust that our advice is sound.

We actively encourage people to develop their own expense policies, which is why weve

provided this template. But i you want more assistance, were here.

We have the solutions and experience to help, and once youre committed to using our tools

(but beore youve signed on the dotted line) well give you a detailed pre-built template to

ensure you are implementing the most suitable expenses management sotware solution or

your company. Then all you have to do is make the undamental policy decisions about what and

how much to approve.

2012 Concur, all rights reserved. Concur is a registered trademark o Concur Technologies. All other company and product names are the property o their respective manuacturers.

Specications and other details listed are accurate as o printing, but may change without notice. WP SMB EXPENSES POLICY NA 2012/12

About ConcurConcur is a leading provider o integrated travel and expense management solutions. Our adaptable web-based

and mobile solutions help companies and their employees control costs and save time. Concur solutions adapt

to individual employee preerences and scale to meet the needs o companies both small and large.

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