In 2021, Float launched with a mission to simplify spend for Canadian companies and teams, raising $42 million toward achieving its goal.
The Toronto fintech is one of Canada’s fastest growing companies, serving thousands of customers and processing over 200,000 monthly transactions.
Through its success, Float noticed a lack of clear and effective expense policies among businesses.
“If you don’t have that policy in place, there’s nothing to check transactions against to ensure you have proper controls,” warns Jennifer McNamee, Float’s Senior Finance and Accounting manager.
To help address this problem, the Canadian fintech released a report titled “How to Create an Effective Expense Policy.”
The crux of a successful policy lies in its scope, the report affirms, which should be broad enough to cover every possible scenario but specific enough to prevent misuse. It should categorically define permissible costs, such as travel and meals, while also setting boundaries with spending caps and outright prohibitions.
The report also points to how companies can integrate digital tools in this domain. Tech interventions can act as robust systems to minimize errors, ensure adherence to policies, and expedite the overall reimbursement procedure.
To get the most out of these policies, Float’s report recommends an inclusive approach that involves various departments in the creation process. Once drafted, a strong communication strategy should be in place to ensure every employee is aware of the nuances.
Check out Float’s full report own crafting the perfect expense policy here.