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Owning a small business comes with challenges in keeping profits up while keeping spending down. If you own a business with more than a few employees you know that employees can create more expenses than you bargained for. They can be wasteful and they can misunderstand just what it means to expense something. At the end of the year you can easily find yourself with an increase in spending but without anything to show for it. Here are some ways to control your employees spending.
First, get rid of expense cards. Often times employees misuse them and there is no need for them. Your best bet is to let your staff know that from now on if there is something that comes up work related they can expense things with their own money and be reimbursed by the company. Explain that it will be a judgment call on how much they are reimbursed. This will keep your employees thinking twice before getting something on behalf of the company.
Make sure you are keeping track of inventory. It’s not that employees are dishonest it’s that many can be careless. While a pen is just a pen to them, to you it’s something that you bought and will continue to have to buy if they don’t take better care of it. Make sure you are keeping track of the traps and pitfalls of your business. This will help you in the long run.
Don’t let your expenses become expensive. Just do yourself a favor and keep an eye on your employees and you’ll keep expenses down.