Resources

Expense management can have a big influence on the success or failure of a company and, the smaller the company, the more blurred the distinction between personal and business expenses.

Our simple guide ‘Expense Management Policy’ is meant to be helpful to both sides of the equation – as a template for a sound business policy and as a guide for each individual who incurs expenses during the course of the business day.

It is accepted that all reasonable expenditure incurred in undertaking company duties is to be reimbursed but clear guidelines are necessary to enable reimbursement to take place in a controlled way. An important part of the procedure relates to the evidence provided and the authorisation required and this is where Exficiency can play a vital role.

One important area of expense management relates to Income Tax. Taxpayers may claim full deductions for expenses incurred wholly, exclusively and necessarily in the performance of their duties – but it is important to understand a few more details beyond this basic principle.

The key rules are defined in the guide. They are designed to help sole traders and small businesses to understand the rules and to satisfy Inland Revenue requirements.