Current efforts in tax reform have drawn attention to an issue that’s easily taken for granted: the ability to write off business expense claims. Both small businesses and large organizations rely on this provision. But what economic reasoning supports the idea of tax-free expense claims, and how can organizations make the most of them with expense management software?
According to an article on the POLITICO website, some say that business expense claims and other capital cost-recovery credits offer an incentive to innovate and to invest in new equipment, which may be beneficial to the overall economy. What’s unusual about these tax incentives is that they affect everyone from the smallest businesses to the largest corporations and manufacturers.
Both large and small organizations can make sure they get the most from these tax incentives by using expense management software like Chrome River EXPENSE. Manually processing and tracking expense claims can drain company resources, but an automated system provides good value in many situations. By integrating the organization’s expense policy compliance rules, all expense claims can be automatically validated up front, ensuring that they align with corporate expense policy, governmental regulations and even client billable policies.
This automated process can help ensure that no personal items are mistakenly deducted as business expenses. If your organization uses company credit cards, for example, expense owners can mark the item as personal, which will automatically deduct the expense from their out-of-pocket reimbursement claim. Such a system is more cost-effective than manual compliance review, and it provides superior tracking, analysis and compliance.
In conclusion, both small businesses and large organizations rely on the ability to write off business expense claims, and organizations make the most of these incentives by using expense management software.
We’d like to hear what you think. Are today’s tax reforms a threat to business expense claims? How would losing these tax incentives impact your organization and industry? Share your thoughts in the comments section below!
Source: POLITICO, July 2013
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