Managing expenses can often be a headache for SMEs. Imagine a system that simplifies this entire process, providing full control and visibility at every step. That's what Pemo's customized Approval Policies offers
Why Approval Policies matter
Approval Policies are essential for SMEs to keep their finances in check and ensure every spend is justified. With Pemo, you can create tailored approval workflows to fit your specific business needs, ensuring that all expenses, card orders, and invoices pass through the right approval steps. This is crucial for effective expense management strategies.
Customizable policies for better control
Pemo allows you to set up approval policies by Merchant Categories and Teams, with Merchant Categories taking priority. If no specific policy is set, the default policy applies, making it easy to manage expenses without confusion. Each expense follows one policy, ensuring a straightforward and efficient process.
Benefits of Pemo Approval Policies
- Streamlined Processes: Simplify the approval process for various types of expenses, reducing administrative burdens and saving time. This is one of the top financial tracking tips for SMEs.
- Enhanced Control: Establish approval workflows for different teams, ensuring that high-value transactions are justified and within budget. Effective budget control methods are key to maintaining financial health.
- Better Oversight: Monitor and approve expenses efficiently to align with overall budget and organizational goals. Cost-saving techniques start with visibility and control.
Case Study — A Company’s success with Pemo
Scenario: A company with over 40 employees uses eight Pemo cards across their procurement, admin, and marketing teams.
Procurement control:
- Challenge. High-value procurement transactions required multiple approvals, leading to delays.
- Solution. Pemo’s customized approval workflows ensured that high-value transactions were justified and aligned with project budgets.
- Result. Faster approval times and improved budget compliance.
Admin efficiency:
- Challenge. Regular administrative expenses were cumbersome to manage.
- Solution. Simplified approval processes for routine expenses, reducing time spent on approvals.
- Result. Enhanced efficiency and reduced administrative workload.
Marketing oversight:
- Challenge. Ensuring marketing expenses were within budget was challenging.
- Solution. Approval policies for marketing expenses ensured all costs aligned with budget and campaign goals.
- Result. Better budget management and more effective marketing campaigns.
Easy setup, full control
Creating Approval Policies with Pemo is a breeze. You can set up one or multiple layers of approval, organized in steps for a smooth process. Customize policies based on expense or invoice amounts and even monthly card limits. It’s all about creating a workflow that works for you, embodying key expense management strategies.
Team-Level policies for enhanced control
Introducing Approval Policies at the team level gives your organization more granular control over expenses. Each team can have specific policies tailored to their needs, ensuring greater efficiency and oversight. This is one of the most effective budget control methods.
15 Best Practices for Smarter Expense Management
To handle the complexities of expense management and address common challenges, businesses should adopt proven strategies that improve accuracy, efficiency, and policy compliance. The following 15 practices can help companies build a more effective expense management system:
- Automated Data Entry - Use expense management tools that handle data entry automatically. Many software programs capture and record expenses directly, reducing manual input errors and saving time by keeping entries accurate and consistent.
- Digital Receipt Capture - Encourage employees to manage receipts digitally through mobile apps. Digital receipts are easier to store, sort, and retrieve - removing the risk of lost or damaged paper and simplifying expense tracking.
- Clear Expense Policy Enforcement - Create clear, accessible expense policies and apply them consistently. Regular training and communication help employees stay informed, minimizing the risk of policy violations.
- Real-Time Currency Conversion - For global teams, choose software that supports real-time currency conversion. This keeps exchange rates accurate for international expenses, reducing confusion and accounting discrepancies.
- Automated Accuracy Checks - Adopt systems that automatically flag errors and inconsistencies in expense reports. These checks improve accuracy, reduce risk of misstatements, and support compliance with financial standards.
- Simplified Reconciliation - Use built-in reconciliation tools that match expenses with credit card or bank statements. This not only speeds up reconciliation but also helps identify mismatches early, avoiding costly errors.
- Mobile Approval Access - Enable expense approvals via mobile devices so managers can review reports quickly, even when they’re away from their desks. This speeds up the reimbursement process and cuts down on delays.
- Advanced Reporting Features - Select tools that offer real-time reporting dashboards. These features give insights into spending patterns, helping finance teams keep budgets on track and support better decision-making.
- System Integration - Choose expense tools that work smoothly with accounting platforms or ERP systems. Linked workflows reduce repeated entry, improve accuracy, and keep financial data in sync.
- Employee Training and Involvement - Train staff to use expense tools properly and show how the system helps them. By addressing their concerns and involving them in the process, you build trust and promote accountability.
- Data Protection Protocols - Use strong data security through encryption, secure access controls, and user permissions. These steps help protect sensitive information and reduce the risk of breaches.
- Regulatory Compliance Updates - Keep up with changing tax and regulatory requirements related to expenses. Reviewing and updating your policies regularly helps avoid legal risks and stay compliant.
- Cultural Awareness in Global Operations - For international teams, offer cultural sensitivity training and adjust expense policies to reflect regional practices while keeping company standards and compliance intact.
- Vendor Management Practices - Build and maintain strong relationships with vendors while reviewing contracts regularly. This can lead to better pricing, improved terms, and long-term savings.
- Strategic Budget Oversight - Use cost control methods that don’t interfere with business needs. Check spending often, adjust budgets when necessary, and find ways to reduce waste.
Expense Management as a Strategic Priority
Strong expense management isn’t a one-time fix - it’s an ongoing effort to improve how spending is handled. Businesses that apply these practices gain several key advantages:
- Better Cost Oversight: Real-time tracking helps reduce waste and identify areas to cut expenses.
- Policy Adherence: Clear rules and consistent enforcement help prevent out-of-policy spending.
- More Efficient Workflows: Automated steps and simpler processes reduce manual tasks and mistakes.
- Higher Productivity: Less paperwork allows employees to stay focused on their main responsibilities.
- Better Financial Insights: Accurate reports support smarter budgeting and clearer spending decisions.
By using these practices, businesses can reduce waste, improve accuracy, and strengthen their financial performance. Expense management is more than just handling receipts - it’s a key part of keeping operations running well.
Conclusion
For SMEs, managing expenses can be challenging. Pemo's approval policies simplify this process, providing the control and visibility needed to ensure financial discipline. By customizing approval workflows, you can streamline your expense management, save time, and focus on what truly matters—growing your business.
Ready to take control? Get started with Pemo and experience seamless expense management.
