Expense management policies are crucial for any business in order to have an efficient, organized, and effective system for the organization’s finances. The policy is the foundation of your company’s financial structure and should be regularly reviewed and updated as needed to ensure that it remains up to date with changes in the legal environment, industry trends, pricing structures, and technology.

In its most basic form, an expense management policy defines who is authorized to make purchases on behalf of your company, what types of purchases are allowed, how much can be spent on each purchase, who is responsible for approving those purchases, and how the purchased items will be tracked and reported. When creating or revisiting your policy, it’s important to consider the goals of your organization and to ensure that the language is clear and concise so that all employees understand what is expected of them.

Good expense management policies not only help your organization manage costs but also facilitate compliance with internal and external regulations related to finance. So, it pays to take the time to create a policy that works for your business.