Because all relocation services funnel through the expense management function to be appropriately recorded and paid, this function is a significant responsibility for those managing the relocation program. As a result, corporate relocation managers and/or payroll managers should consider several key issues when evaluating the effectiveness of the expense management process in their companies.
When evaluating the current expense management process it is important to look at several things before determining what changes, if any, should be made. First, review how the process performs against a number of key metrics, such as expense report processing time, service results, audit results, or number of W2 Cs required. Then determine if the results are satisfactory and objectives are clearly in place.
Questions to consider when assessing the current process:
• Who receives the expense and what do they do with it?
• Who audits the expense?
• Who enters it into the system?
• Who puts it into payroll?
• Who puts the invoices into A/P?
• Who reconciles the G/L?
• Who does the gross up?
• Who communicates to the employees that expenses are paid/rejected?
• How much time is the employee’s manager spending in the process?
• Is the function spread among several people and it is consistent between processors?
• How many FTEs (combined) provide this service?
• How much do the inefficiencies in the process cost the company?
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