Expense Authorization Form Training Video
Expense Authorization Form Best Practices
As a business owner, managing expenses is a critical aspect of maintaining financial health. One of the ways to manage expenses effectively is to have an expense authorization form in place in order to pre-approve expenses that employees or departments will incur.
Expense Authorization Form
Description of Expense Authorization Form
An Expense Authorization Form is a document that requests approval for certain expenses that an employee or department intends to incur. It serves as a means of control and oversight to ensure that expenses are necessary, reasonable, and within budget.
The form typically includes the date, the purpose of the expense, the estimated cost, and the name of the employee or department requesting the expense. It also includes a section for approval and a section for documentation, such as receipts or invoices.
An Expense Authorization Form works by creating a formal process for requesting, approving, and documenting expenses. The form serves as a means of communication between the employee or department requesting the expense and the approver.
The employee or department fills out the form, providing details of the expense, such as the date, purpose, and estimated cost. They then submit the form to their manager or another authorized person for approval.
The approver reviews the request, ensuring that it is reasonable and necessary, and approves or denies the request. If approved, the expense authorization form serves as documentation of the approval, and the employee or department can proceed with incurring the expense.
Once the expense is incurred, the employee or department provides documentation, such as receipts or invoices, to support the expense. This documentation is attached to the expense authorization form and stored for future reference.
Benefits of Using an Expense Authorization Form
Using an expense authorization form provides several benefits for businesses, including:
- Control: The form provides a means of control over expenses, ensuring that expenses are reasonable, necessary, and within budget.
- Oversight: The form provides oversight of expenses, enabling managers to monitor and approve expenses, and preventing unauthorized expenses from being incurred.
- Documentation: The form provides documentation of approved expenses, ensuring that there is a record of the expense and supporting documentation for future reference.
- Budgeting: The form provides a means of budgeting for expenses, allowing businesses to allocate funds and monitor spending.
How to Use an Expense Authorization Form Effectively
To use an expense authorization form effectively, businesses should follow these steps:
- Develop a policy: Businesses should develop a policy outlining the process for requesting, approving, and documenting expenses using the expense authorization form. The policy should specify who is authorized to approve expenses and what types of expenses are allowed.
- Train employees: Employees should be trained on the expense authorization form policy and procedures to ensure that they understand the process and are able to complete the form accurately.
- Provide the form: Businesses should provide the expense authorization form to employees and departments and ensure that it is readily accessible.
- Require documentation: Businesses should require employees to provide documentation, such as receipts or invoices, to support the expense. This documentation should be attached to the expense authorization form and stored for future reference.
- Monitor expenses: Managers should monitor expenses regularly to ensure that they are within budget and comply with the policy. Any deviations from the policy should be addressed promptly.
An Expense Authorization Form is a valuable tool for managing expenses in a business. By creating a formal process for requesting, approving, and documenting expenses, businesses can ensure that expenses are reasonable, necessary, and within budget.
Praxie's Online Expense Authorization Form Tools & Templates
An Expense Authorization Form provides a means of control, oversight, and documentation, and enables businesses to monitor expenses and allocate funds. To use an expense authorization form effectively, businesses should develop a policy, train employees, provide the form, require documentation, and monitor expenses regularly.
How to use it:
- Fill in the requested information at the top of the template
- Complete the form with as much detail as possible, including the item being considered for purchase, the reason it’s needed and projected costs
- Have the form approved by someone with purchasing authority
Praxie’s online Expense Authorization Form collaboration tools allow any team or organization to instantly begin working with our web templates and input forms. Our digital platform goes far beyond other software tools by including progress dashboards, data integration from existing documents or other SaaS software, elegant intuitive designs, and full access on any desktop or mobile device.