Employee Expenses Process

Overview Expenses are in general a complicated beast. Historically employees view the expense process as a complicated, non-flexible, unnecessary procedure for their recovery of outof -pocket expenses. Often they have not read or aware of the expense policy or any other guidance given about the completion and submission of their expenses. There understanding may be one of well its been approved so just pay it Many companies are now looking to technology to help with the expense process, moving away from the old paper based manual submissions and towards front-end expense systems. Sky has re-enforced this idea with the introduction of Captura. They share the view that they are a major enhancement to the expense process, the result for the employee is one of feeling more involved in the process, together with the obvious time saving element due to the electronic approval/submission. It allows the finance department to spend less time on data entry and more on the scrutiny of the submission for audit purposes/company policy/P11D and the review of the frequency of payment runs. Purpose of review The purpose of this review is not to produce a cast in stone documented procedure or methodology, the purpose of the review is to provide a structured approach, which understands the nature of Skys business. It should not be totally impractical or inflexible; it will be required to meet the ever-changing needs of the business. However it will not overlook our requirement to meet the needs of legislation or company policy. In order to fully understand all the components of the expense process. I have spent time reviewing a large number of expense claim submissions. Whilst the output is comprehensive it is by no means exhaustive. Plan JK to prepare a working document titled Expenses Review Process the paper will define a workable process for the review of employee expenses. Its scope will be from the submission of an authorised expense claim to its payment thereafter. It will identify key areas of focus and guidance. Whilst this paper defines the steps its purpose is not one of assigning responsibility, its one of identifying its need.

The paper will help us to: Understand how we can educate both employees and their managers of issues surrounding their submission. It will help us determine how we may make better use of the system by capturing relevant information at the front-end. It will allow the expenses department to increase their awareness of all the issues and ensure they have a consistent and structured approach. It is fundamental that we have an effective process in place in order: To ensure expense claims comply with expenses policy Ensure all expense claims are appropriately authorised prior to processing Ensure the correct treatment of VAT Ensure all tax sensitive issues are highlighted and recorded for P11D/PSA purposes Ensure all expenditure is coded to the appropriate account in the chart of accounts, both for consistent sensible figures and for tax purposes