The Definitive Guide to Business Finance: What smart managers do with the numbers, Second Edition

Managing expenses claims

One common problem area seems to be managing expenditure by employees. The matter comes under control relatively easily with proper procedures in place. Essentially, for each member of staff, decide whether they should have discretionary power to spend money on the company’s behalf. If so, allocate limits on the amount of expenditure that they can authorize for each category of outlays. For example, a supervisor might have authority to spend up to $50 a month on stationery. A junior manager might be permitted to approve overtime within a certain ceiling. A senior manager may have power to undertake capital spending. And so on. Corporations often do this by department and job grade, although, as with any rules, it may ...