A loophole is defined as an ambiguity or inadequacy in a set of rules. We see this all the time in business expense reporting. Let’s look at the role of a sales professional, for example. He is in a niche field — selling a customer service training program for auto parts retailers.
In this hypothetical case study, the sales rep’s company is headquartered in Michigan — but he lives in San Diego, covering the SoCal region. His sales manager recognizes that Southern California is a primary market. EVERYONE drives a car, starting at age 15 with a learner’s permit. And the number of auto parts stores per square mile is triple that of other markets.
So the sales manager instructs his rep to visit as many retailers as he can. In the process, gas and travel expenses are reported. Meals and entertainment expenses for clients and prospects are reported. And on a semi-regular basis, office supplies are reported as expenses for customizing sales presentations. Since the rep fills out a paper expense form, the manager has no insight or control over his rep’s spending.
With ExpenseWire, expense management is an opportunity to set rules that align with your company’s objectives.
For example, the sales manager can identify the number of retailers in the sales region, and determine how many can realistically be visited within a month’s timeframe. With that simple arithmetic at hand, the sales manager can then set monthly spending limits for his sales rep.
Spending caps don’t limit the sales rep’s work. Rather, they focus him on the key accounts for which more expenses are warranted.