How to Get Employees to Turn In Receipts
Transform your expense process. Implement clear policies and efficient systems to ensure consistent employee receipt submission.
Transform your expense process. Implement clear policies and efficient systems to ensure consistent employee receipt submission.
Collecting employee receipts for expenditures can be challenging. However, accurate receipt submission is crucial for precise expense tracking, budget management, tax compliance, and audit readiness. Establishing clear processes for receipt collection supports financial accuracy and operational efficiency.
A valid receipt for business purposes must contain specific data points to ensure proper expense substantiation. This includes the vendor’s name, the date of the transaction, and the total amount paid. A detailed, itemized list of the goods or services purchased is also necessary, along with the method of payment used. These details allow for accurate categorization and verification of business expenses.
Receipts are generally required for most business expenditures, such as travel costs, meals, office supplies, and client entertainment. The Internal Revenue Service (IRS) often requires substantiation for expenses, particularly for amounts over $75 and for all lodging expenses, regardless of the cost. This substantiation typically requires documentation showing the amount, time, place, and business purpose of the expense.
In situations where a traditional receipt might be missing or insufficient, alternative documentation may sometimes be acceptable, though it is not ideal. A credit card statement can serve as supplementary evidence when paired with a detailed expense report outlining the business purpose and specific items purchased. However, businesses should prioritize obtaining original, legible receipts whenever possible to avoid potential audit complications. Digital copies of receipts, provided they are clear and contain all necessary information, are generally acceptable for record-keeping.
Establishing a well-defined and accessible expense reimbursement policy is fundamental for any organization. This written document serves as the authoritative guide for employees regarding reimbursable expenditures and the associated requirements. The policy’s purpose should be clearly stated at its outset, outlining the rationale behind the rules and their benefits to the company and its employees.
The policy must detail the specific types of expenses that are eligible for reimbursement, differentiating between business-related costs and personal expenditures. It should also clearly define spending limits for various categories of expenses, such as meals or travel, and specify the approval hierarchy for different expense amounts. This ensures appropriate oversight and control over company funds.
The policy should reiterate the required information for receipts, referencing the essential data points necessary for substantiation. Specific submission deadlines for receipts and complete expense reports are critical, typically ranging from 30 to 60 days after the expense is incurred or the trip concludes. It is also important to outline the consequences for non-compliance, which may include delayed reimbursement or non-reimbursement of the expense. The policy should also provide a clear process for employees to seek exceptions or clarifications regarding specific situations, ensuring fairness and flexibility.
Making the act of submitting receipts as straightforward and efficient as possible for employees significantly increases compliance rates. Modern expense management software, such as platforms like Expensify, Concur, or Zoho Expense, offers robust solutions for this purpose. These digital tools often allow employees to capture receipt images using their mobile devices, leveraging optical character recognition (OCR) technology to automatically extract relevant data, which minimizes manual entry and potential errors.
Many digital platforms also integrate directly with accounting systems, facilitating a seamless flow of expense data from submission to reconciliation. Providing clear, step-by-step instructions for using these tools, such as “how to snap a photo with the app” or “how to forward an email receipt directly to the system,” is essential. This guidance ensures employees can easily navigate the submission process without confusion.
For businesses not yet utilizing comprehensive software, simpler digital methods can still streamline the process. Setting up a dedicated email address for receipt forwarding or designating specific cloud storage folders where employees can upload scanned receipts are viable alternatives. Even for smaller businesses relying on physical receipts, providing a secure and clearly designated drop-off location can improve efficiency. Regardless of the chosen method, it is crucial that the finance team processes submitted expenses in a timely manner. Prompt reimbursement encourages employees to adhere to submission guidelines for future expenditures.
Ongoing communication and reinforcement are crucial for ensuring employees consistently adhere to receipt submission requirements. The process begins with comprehensive initial training during employee onboarding, where the expense policy and submission procedures are thoroughly introduced. This foundational training sets clear expectations from the start of an employee’s tenure.
Beyond initial training, regular reminders through internal communications, such as company newsletters, team meetings, or intranet updates, help keep the policy top-of-mind. These periodic nudges serve to reinforce the importance of timely and accurate submissions. Ensuring that the expense policy and detailed submission instructions are easily accessible, perhaps on a company intranet or shared drive, empowers employees to quickly find answers to their questions.
Establishing clear channels for employees to ask questions or seek clarification on policies or submission methods promotes a supportive environment. This accessibility helps prevent misunderstandings and encourages compliance rather than avoidance. Management and team leaders also play a significant role by consistently modeling good behavior in their own expense submissions, demonstrating adherence to company policy. Finally, consistent enforcement of the policy, applying consequences fairly and uniformly across all levels of the organization, reinforces the importance of the guidelines without creating a punitive atmosphere.