How do you review and audit your expense reports regularly?

1 Set a schedule

The first step to review and audit your expense reports regularly is to set a schedule that works for you and your team. Depending on the size and nature of your business, you may want to do this weekly, monthly, quarterly, or annually. Choose a frequency that allows you to catch any errors, discrepancies, or frauds early, but also gives you enough time to process and reimburse the expenses. You can use a calendar, a reminder, or a software tool to keep track of your schedule and deadlines.

2 Follow the policy

The next step is to follow the policy that governs your expense reporting process. This policy should outline the rules, guidelines, and procedures for submitting, approving, and reimbursing expenses. It should also specify the types, categories, and limits of expenses that are allowed, as well as the documentation and receipts that are required. By following the policy, you can ensure that your expense reports are consistent, compliant, and fair. You can also avoid any disputes, penalties, or audits from external parties.

3 Check the details

The third step is to check the details of each expense report carefully. This means verifying that the expenses are valid, reasonable, and business-related. It also means checking that the dates, amounts, currencies, and descriptions are correct and match the receipts. You can use a checklist, a spreadsheet, or a software tool to help you with this task. If you find any errors, discrepancies, or frauds, you should flag them, correct them, or reject them accordingly.

4 Compare the trends

The fourth step is to compare the trends of your expense reports over time. This means analyzing the data and patterns of your expenses to identify any changes, anomalies, or issues. For example, you can compare the total expenses, the average expenses, the expense categories, the expense ratios, or the expense outliers across different periods, departments, projects, or employees. You can use a dashboard, a report, or a software tool to help you with this task. By comparing the trends, you can gain insights into your spending habits, efficiency, and performance.

5 Communicate the feedback

The fifth step is to communicate the feedback of your review and audit to your team. This means sharing the results, findings, and recommendations of your analysis with the relevant stakeholders. For example, you can praise the employees who submitted accurate and timely expense reports, coach the employees who made mistakes or violated the policy, or discipline the employees who committed frauds or abuses. You can also suggest any improvements or changes to the policy, process, or system that can help you manage your expenses better.

6 Automate the process

The final step is to automate the process of reviewing and auditing your expense reports as much as possible. This means using technology to streamline, simplify, and speed up your tasks. For example, you can use a software tool that can scan, capture, and validate your receipts, generate and submit your expense reports, approve and reimburse your expenses, and analyze and report your data. By automating the process, you can save time, money, and hassle, and focus on your core business activities.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?