Press Release

Why Employee Expense Tracking Matters
Construction projects typically involve multiple sites, remote teams, and frequent travel. Employees may incur costs for:

Transport to and from job sites
Overnight stays for out-of-town projects
Meals and subsistence allowances
Tools, safety gear, and consumables
Training and certifications
If these expenses aren’t properly recorded and allocated to the correct project, it becomes difficult to assess true project costs. Worse, untracked or misreported expenses can lead to budget overruns, disputes with clients, and compliance issues.

Capturing Project-Based Costs
To manage expenses effectively, construction companies must ensure that every cost is tied to a specific project, phase, or cost code. This allows for granular analysis and better forecasting. Here’s how to do it:

1. Use Expense Tracking Apps
Modern expense tracking apps make it easy for employees to log expenses on the go. Popular options include:

Expensify – Allows users to scan receipts, categorise expenses, and submit reports for approval.
Zoho Expense – Offers mileage tracking, multi-level approvals, and integration with accounting software.
Rydoo – Designed for mobile-first expense management, ideal for field workers.
QuickBooks Online – Includes expense tracking features that integrate with payroll and project costing.
These apps often allow users to tag expenses by project or client, attach receipts, and submit claims digitally. Managers can approve expenses in real time and ensure they’re allocated correctly.

2. Integrate with Project Management Systems
Linking expense tracking tools with project management software (like Procore, Buildertrend, or Sage) ensures that expenses flow directly into project budgets. This integration helps:

Avoid manual data entry
Reduce errors and duplication
Provide real-time visibility into project costs
Improve collaboration between finance and site teams
3. Set Clear Policies and Training
Employees need to understand what qualifies as a reimbursable expense, how to record it, and which project it should be assigned to. Clear policies and training help reduce confusion and ensure consistency across the business.

Analysing Project-Related Expenses
Once expenses are recorded and categorised, the real value comes from analysing the data. Construction businesses can use expense reports to:

Compare actual vs. estimated costs
Identify cost overruns early
Spot trends in travel or equipment spending
Improve future budgeting and quoting
Ensure client billing is accurate and transparent
For example, if travel expenses for a remote site consistently exceed estimates, it may be worth exploring alternative accommodation options or adjusting the project plan. Similarly, if tool purchases spike during a certain phase, it could indicate a need for better inventory management.

Best Practices for Expense Management
To maximise the benefits of expense tracking, construction companies should:

Automate where possible – Use apps and integrations to reduce manual work.
Review expenses regularly – Weekly or monthly reviews help catch issues early.
Use dashboards and reports – Visual tools make it easier to spot trends and anomalies.
Encourage accountability – Make expense tracking part of the company culture.
Conclusion
Employee expenses may seem minor compared to materials and labour, but they can have a significant impact on project profitability. By capturing project-based costs accurately and analysing expense data effectively, construction businesses can gain better control over budgets, improve forecasting, and deliver more profitable projects.

In today’s competitive environment, smart expense management isn’t just a back-office task—it’s a strategic advantage.

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