Navigating business expenses: Key insights & best practices

Managing business expenses can be tricky, and getting it right is essential. That’s why we turned to the experts - travel and expense leaders from our customer network, who have let us know how they’d approach some of these common expense dilemmas.

Here are some key findings and actionable insights that can help you shape your company’s policy.

 

The route to success: Crafting your travel and expense policy

Whether you're creating T&E policies for the first time or updating your current policies, this guide is designed to help you write a document that your teams will use and follow.

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Would you approve these business expenses?

Scenario 1: Alcohol expense policy compliance

Let’s say your policy allows wine by the glass, cocktails, or beer – limited to two per person. However, an employee has decided to buy a bottle of wine because it was cheaper than two glasses during happy hour.

T&E leaders say:

Most respondents (54%) said that they would not approve it. A smaller group at 27% said that they would likely approve it but would require additional documentation showing that it was for more than one person or other proof of who consumed the alcohol. The remainder of the group was either unsure or had additional questions that would need to be answered before they could make an approval decision.

Here are a few best practices that can help make approval decisions easier for your team.

Expense policy best practices for alcohol

• Use clear, straightforward language.
• Include specific examples of what is and isn’t permitted.
• Do not send mixed messages.
• Make sure the policies are enforceable.

Scenario 2: Identifying suspicious expense reports

As the processor, you notice one employee's expenses have increased while others remain consistent. You suspect the manager might be approving non-compliant reports.

T&E leaders say:

Most of our audience said that their next step in this situation would be to talk to the manager, with that option getting 38% of the votes. At a close second, 36% said they would run additional reports to compare the activity over time and across teams. Some respondents (19%) said that they would reject the report and ask for more details. The remaining 7% stated that they would take other actions, like talking to the employee, bringing the case to HR, or doing nothing. In general, most everyone agrees that this would be a cause for further investigation and conversations.

Expense policy best practices for fraud prevention

• Conduct random audit checks on expense claims.
• Educate employees and approvers on what constitutes fraud and the consequences.
• Provide anonymous ways for employees to report suspicious activity.
• Look for duplicate claims, such as the same receipt submitted multiple times or similar expenses claimed across different reports.

Scenario 3: Managing meal expenses at workshops

You ask an employee to attend an all-day workshop where meals are provided. Afterward, they submit an expense report requesting reimbursement for lunch.

T&E leaders say:

Almost two-thirds of our customer respondents said that they would not approve this expense. One quarter of respondents answered “other” with many indicating that they would seek additional information from the employee before making an approval decision. There were 10% of respondents who said that they would approve the expense.

Expense policy best practices for meals

• Include language for conferences or off-site events and specify whether they are covered, including a specific monetary amount if needed.
• Adjust limits for currency and local norms for international travel.
• Consider flexibility for religious, dietary, or medical restrictions.
• Define what qualifies as a “travel meal” and what is reimbursable and not reimbursable.

Setting clear guidelines is important in every aspect of business, particularly with your most valued audience – your employees. With all the pressures in today’s environment, it’s never been more important for travel and expense (T&E) management teams to take action. Whether creating T&E policies for the first time or updating your current policies, our T&E policy guide is designed to help you write a document that your teams will use and follow.

Managing expenses effectively requires clarity, consistency, and proactive measures. By implementing these best practices, you can ensure compliance, prevent fraud, and create a transparent expense management process.

Learn more about how Concur Travel and Expense can help your business increase policy compliance and streamline T&E.

Frequently Asked Questions about expense policy best practices:

1. What should be included in a business expense policy?

A clear business expense policy should outline what is and isn’t permitted, include examples for alcohol, meals, and travel, and ensure the rules are easy to enforce.

2. How can companies prevent expense report fraud?

Companies can prevent fraud by conducting random audits, educating employees and approvers, and providing anonymous reporting options for suspicious activity.

3. Why is consistency important in expense management?

Consistency builds fairness, reduces confusion, and helps employees understand and follow company expense rules more confidently.

Ready to optimise your approach?

Discover how Concur Travel and Expense can help you strengthen your policy, streamline your processes and stay ahead of compliance challenges.

For more guidance on handling challenging expense approvals, watch our on-demand webinar that explores real-world scenarios and expert insights.