The expense reports submitted by employees are then reimbursed, if the cost was borne by the employee’s personal account, or the spending is integrated into the company’s expense account. Expense management can either record to the whole system in place at an organization or the software and tools used to carry out the tasks of analyzing expenses.Īn effective expense management system takes the expense reporting of all company staff into consideration, audits them, to determine validity and prevent overspending. What is expense management?Įxpense management is the process or system instituted in an organization towards sorting, recording, processing and reimbursement of expenses incurred by their employees. This article will highlight an example of an expense management process, the ways to best manage expenses to save time and cost for your organization, and how to get your team aligned. However, although these decisions were made from the employee’s end, there are ways to strategically manage these expenses proactively to save costs while still providing employees with the ability to make their own spending decisions. In the course of official company assignments, employees may incur some expenses that must be charged to the company’s account.

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