What are the best ways to track expenses for remote workers?

1 Use a cloud-based expense management system

One of the best ways to track expenses for remote workers is to use a cloud-based expense management system that allows them to submit their receipts and invoices online, and that automates the approval and reimbursement process. A cloud-based system can also provide you with real-time visibility into your expenses, and generate reports and analytics that can help you optimize your budget and policies. Some examples of cloud-based expense management systems are Expensify, Zoho Expense, and Concur.

3 Implement a pre-approval process

A pre-approval process can help you track expenses for remote workers by ensuring that they only incur expenses that are necessary and reasonable for their work. A pre-approval process can also help you prevent fraud, overspending, and disputes. You can use your cloud-based expense management system to create and approve expense requests, and to monitor and control your spending. You should also establish criteria and guidelines for approving expenses, and assign roles and responsibilities to your managers and staff.

4 Streamline your receipt collection and verification

Receipt collection and verification are essential steps to track expenses for remote workers, as they provide proof of the expenses and help you avoid errors and discrepancies. You should encourage your remote workers to scan or take photos of their receipts and upload them to the expense management system as soon as possible, and to keep the original copies for a certain period of time. You should also use the expense management system to verify the receipts against the expense reports, and to flag any missing, duplicate, or suspicious receipts.

5 Integrate your expense management system with your accounting and payroll software

Integrating your expense management system with your accounting and payroll software can help you track expenses for remote workers by simplifying and speeding up the reimbursement process, and by ensuring that your expenses are recorded and reported correctly. Integration can also help you reduce manual data entry, errors, and duplication, and improve your cash flow and tax compliance. You should choose an expense management system that can easily connect with your accounting and payroll software, or use a third-party integration tool.

6 Review and audit your expenses regularly

The final way to track expenses for remote workers is to review and audit your expenses regularly, and to use the data and insights from your expense management system to identify and address any issues, trends, or opportunities. You should also compare your expenses with your budget and goals, and evaluate the effectiveness and efficiency of your expense policies and processes. You should also conduct periodic audits of your expenses, either internally or externally, and follow up on any findings or recommendations.

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?