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The UK’s 2025 Carbon Reporting Requirements

uk carbon reporting 2025

If you haven’t heard, the UK government has confirmed their intention to establish new sustainability reporting standards within the first quarter of 2025with the aim of adopting IFRS Sustainability Disclosure Standards (SDS) by July 2025 

Their goal is to improve transparency and accountability for environmental, social, and governance (ESG) issues, and align the requirements with international standards. This means you’ll likely be required to provide more detailed information about your sustainability practices and climate related risks—a huge step in the right direction for climate change! 

So, with that in mind, we’ll explain what we know about the new regulations so far, and how you can get ready to comply. 

First of all, why a change in sustainability reporting? 

Investors, consumers, and governments are increasingly demanding that companies be open about their efforts to tackle climate change, manage resources, and act responsibly when it comes to ESG. 

That’s why, estimated to start in 2025, businesses will be required to align their reporting with the Task Force on Climate-related Financial Disclosures (TCFD) and International Sustainability Standards Board (ISSB) frameworks as the UK government’s Sustainability Disclosure Requirements (SDR) are set to include these standards. 

What’s the Task Force on Climate-Related Financial Disclosures (TCFD)? 

The TCFD was set up in 2015 to help businesses understand and share information about their climate-related financial risks. The framework encourages companies to disclose how climate change affects their operations, strategies, and financial plans to help stakeholders see how they’re handling climate risks and moving towards a low-carbon future. 

The TCFD framework focuses on four key areas: 

  • Governance: How the board and management oversee climate-related risks and opportunities. 
  • Strategy: The actual and potential impacts of climate-related risks and opportunities on the business, strategy, and financial planning. 
  • Risk management: How the company identifies, assesses, and manages climate-related risks. 
  • Metrics and targets: The metrics and targets used to assess and manage climate-related risks and opportunities, such as greenhouse gas emissions and energy consumption. 

What’s included in the new 2025 reporting requirements? 

While we’re still waiting on the latest announcements from the government about their plans, we can expect ISSB-aligned reporting requirements to cover key areas like: 

  • Climate-related financial disclosures: You’ll be required to report on how climate change affects your business model, financial performance, and long-term viability. This includes risks from climate-related regulations, physical impacts of climate change, and market shifts towards greener technologies. 
  • Carbon and emissions data: Up next is detailed information about carbon emissions, resource use, and environmental impact that must be disclosed. This includes your direct emissions and those from supply chains (Scope 3 emissions). 
  • Sustainability strategy and governance: You’ll also have to show how you integrate sustainability into your corporate strategy and governance, including how boards and management oversee sustainability initiatives. 

Who will be affected by new regulations? 

Businesses must report carbon emissions if they meet one or more of these criteria: 

  • Publicly listed 
  • Issued listed debt instruments 
  • Private company with a turnover exceeding £500 million and with more than 500 employees 
  • Insurance company or bank 

Similarly, LLPs that trade or have a turnover over £500 million and more than 500 employees also have to comply. Listed companies are subject to FCA Listing Rules on a ‘comply or explain’ basis, regardless of size. 

Why are these changes important? 

Mandatory sustainability reporting is a crucial step towards the UK’s climate goals. Businesses are under pressure to show they’re contributing to solving climate change—and the new requirements aim to provide greater transparency, making sure companies can’t overlook or downplay their environmental impact. 

Plus, for investors, the new standards make it easier to compare businesses’ sustainability performance across industries, helping drive greener investment decisions. Companies that fail to comply could face reputational risks and miss out on investment opportunities as stakeholders, these days, tend to prefer ESG-friendly businesses. 

Even if your business isn’t required to report, many companies track their carbon emissions voluntarily. Sustainability initiatives boost your brand reputation and attract investors; and companies that lead in sustainability are increasingly favoured by consumers, partners, and investors. 

Automate your carbon reporting in Capture Expense 

Capture Expense supports reporting of Scope 1, 2, and 3 carbon emissions, helping you achieve your sustainability goals and showcase your commitment to environmental responsibility.  

By tracking your carbon emissions in Capture Expense, you’ll be ready to comply with upcoming regulations and access valuable insights for improving sustainability. Find out more about how it works. 

Capture Expense Brochure

Unlock the power of real-time spending insights across your entire organisation. Dive into our brochure to discover how you can stay on top of reimbursements, bills, and credit card transactions as they happen, ensuring smarter financial decisions.

A Guide to Enhanced Reporting Requirements (ERR) in Ireland

enhanced reporting requirements err

Since the Enhanced Reporting Requirements (ERR) kicked in from January 2024, businesses in Ireland had to make some key changes to how they manage and report on expenses.  

The new rules are all about improving transparency and making sure the right information is reported to Revenue, and they impact three key things; remote working allowances, small benefits, and travel expenses. 

So, what does this mean for your business, and how can you stay fully compliant? Let’s break it down. 

What are the Enhanced Reporting Requirements (ERR)?

ERR is a new way of making sure businesses in Ireland report specific employee expenses more accurately. If your company provides allowances for remote working, offers small benefits like gift cards, or reimburses employees for travel and subsistence, you need to report these more precisely to Revenue. 

Here’s a closer look at what needs to be reported under Enhanced Reporting Requirements: 

  1. Remote working allowances: If your team is working from home—whether it’s full-time or hybrid—you might be covering some of their home office costs like electricity, heating, or broadband. ERR means you’ll need to keep track of:  
      • How much you’re paying employees to cover these costs. 
      • Whether the payments stay within Revenue’s tax-free limit (currently €3.20 per day). 
      • Reporting any amounts over that limit, as they’ll need to be taxed

     

  2. Small benefits exemption: Many businesses like to offer non-cash benefits—things like gift vouchers or rewards—as part of their employee perks. Under ERR, you’ll now need to: 
    • Report the value of any small benefits provided to your staff. 
    • Ensure the total value stays under the current exemption limit (which is €1,000 per year). 
    • If any employee’s benefit goes over the limit, the excess will need to be included in their taxable income.
       
  3. Travel and subsistence: If your employees are on the road for work—whether it’s for meetings, conferences, or client visits—ERR changes how you report travel allowances. You’ll need to: 
    • Track and report the amounts paid for travel and subsistence, such as meals, mileage, and accommodation. 
    • Ensure the payments align with Revenue’s daily subsistence rates. 
    • Report any amounts above those approved limits, as they’ll be taxable. 

 Managing employee expenses has always been important, but now, with ERR, the stakes are higher. The key here is accuracy. If you’re offering remote working allowances or covering travel costs, you’ll need to get those details right and report them promptly. Not doing so can lead to compliance issues, tax liabilities, and even penalties from Revenue. 

How to submit your ERR

All ERR reports need to be submitted through Revenue’s Online Service (ROS); the platform that allows you to upload your data and make sure it’s filed correctly. If you’re already familiar with ROS for other tax reporting, it’ll be a smooth transition to include ERR data here as well. 

It’s worth noting that one of the key changes is the need for real-time reporting. This means you’ll need to submit the relevant data to Revenue every time you process remote working allowances, small benefits, or travel reimbursements. 

How does ERR impact your business?

The biggest change is how closely you monitor and report these expenses. You’ll need to keep a detailed record of all qualifying payments and make sure they’re reported accurately each time. Whether your expenses are managed in-house or through an external provider, you’ll need to make sure your systems are up to the task of meeting these new reporting obligations. 

Here’s three areas you can focus on to keep on track: 

  • Tracking allowances and benefits: Every remote working allowance, travel reimbursement, or small benefit needs to be tracked. Make sure these payments fit within the limits set by Revenue, and any over-the-limit amounts are flagged as taxable. 
  • Reporting in real-time: It’s no longer just about logging expenses for internal records; ERR means you need to report this information in real-time to Revenue. This helps makes sure all your spend is up-to-date and compliant. 
  • Being prepared for audits: With the new focus on transparency, Revenue will have a clearer picture of how businesses handle employee expenses. This means audits could become more frequent, so having clean, accurate records will be key. 

How to easily manage your Enhanced Reporting Requirements

To stay ahead of ERR, here’s what your business can do: 

  1. Review your current expense policies: Take a look at how you’re currently managing remote working allowances, small benefits, and travel expenses. Are they properly documented and within the allowable limits? 
  2. Upgrade your software: If you’re not already using digital tools for tracking employee expenses, now’s the time to invest. Automated systems can help you capture and report the required details accurately and efficiently, and automatically generate the reports for you. 
  3. Stay informed on Revenue guidelines: Revenue’s guidelines on tax-free limits and approved daily rates change from time to time. Make sure your team is up-to-date on the latest rules, so you can stay compliant without any surprises. 
  4. Educate your teams: Whether it’s HR, finance, or your employees themselves, everyone needs to understand the changes ERR brings. Ensure teams are trained on how to handle, track, and report expenses under the new rules. 

A Guide to Expense Management Compliance in Ireland

The information you need to make sure your business complies with Revenue guidelines across policies, tax, reporting, allowances, and more—bridging the gap between in-depth explainers and those that lack the extra context you need!

Struggling with ERR?

Capture Expense is built to manage your Enhanced Reporting Requirements, along with other features designed to keep you Revenue compliant across all areas like mileage and subsistence. 

Automatically generate reports tailored specifically for Irish Revenue reporting, including all the necessary data across remote working allowances, small benefits, and travel expenses – so you have everything you need to stay compliant, without the manual work. 

Capture Expense Ireland Brochure

Unlock the power of real-time spending insights across your entire organisation. Dive into our brochure to discover how you can stay on top of reimbursements, bills, and credit card transactions as they happen, ensuring smarter financial decisions.

How to Streamline Your Expense Management Process

Streamline Your Expense Management Process

We know that keeping tabs on expenses can sometimes feel like juggling a dozen flaming torches while riding a unicycle. Fear not! We’ve got your back. With the right approach and some nifty tips up your sleeve, you can turn this process into a breeze.

Whether you’re a solopreneur, a small business owner, or simply someone looking to improve their personal expense tracking, we’ve got you covered.

Streamlining your expense management process is critical to paving a smooth road to financial success. By implementing an efficient expense management system, you’re essentially clearing away the obstacles that can slow down your journey towards financial stability an growth. It’s about gaining a clear, real-time view of where your money is going, enabling you to make informed decisions and allocate resources wisely. Moreover, a streamlined process saves you precious time and reduces the chances of errors, ensuring that your finances are in order and compliant with policies. Ultimately, a well-organised expense management system is the foundation for achieving financial peace, whether in personal finances or within the business realm, fostering a culture of financial responsibility and empowerment.

1. Embrace Digital Solutions

Embrace the wonders of technology! Ditch the old shoebox of receipts and step into the future with expense management apps and cloud-based tools. Modern expense management apps like Capture Expense, make tracking and categorising expenses a piece of cake. They offer features like receipt software, automated expense categorisation, and seamless integration with accounting software. Long-story short, they’re like little money-saving fairies that organise your expenses effortlessly.

2. Categorise and Conquer

Channel your inner Marie Kondo and categorise your expenses with joy. Sort them into neat, meaningful categories to easily identify where your money is going. Regularly reviewing your expenses helps to identify trends, cost-saving opportunities, and potential areas for optimisation. Understanding where your money is going can lead to smarter financial decisions. This way, you’ll have a clear view of your spending habits and can adjust accordingly.

3. Set Realistic Budgets

Budgeting doesn’t have to be a daunting task! Set achievable financial goals and allocate specific amounts for various spending categories. It’s like giving your money a purpose, and watching it work wonders within its designated realms. Setting clear guidelines on what expenses are reimbursable and the submission process creates transparency and reduces confusion. Educate your team on the policy to ensure compliance and smooth expense management process.

4. Automate Approval Workflows

Let’s make it simpler, shall we? Set up automatic payments and transfers to ensure bills are paid on time and savings are squirreled away without you having to even lift a finger. Automating the approval process not only saves time but also ensures consistency and compliance. Many expense management tools allow you to set up automated approval workflows based on predefined rules. Companies that automate their approval workflows experience a 25% reduction in processing time. 

5. Regular Check-ins and Celebrations

Don’t forget to give yourself a pat on the back for a job well done! Regularly review your expenses, celebrate your process, and adjust your budget if needed. Life is a journey, and so is managing your finances.

6. Educate Yourself

Knowledge is power! Stay informed about financial best practices and keep learning about smart money management. Setting clear guidelines on what expenses are reimbursable and the submission process creates transparency an reduces confusion. Educate your team on the policy to ensure compliance and smooth expense management. In fact, companies with a clearly defined expense policy see a 50% reduction in out-of-policy spending. So keep an eye out! because there are tons of exciting resources out there waiting for you to uncover secrets.

7. Involve Your Team

If you’re managing expenses for a team, collaboration is key! Foster an environment of transparency and encourage your team members to input their expenses accurately and promptly. In general, the longer the delay, the harder it is to remember and accurately categorise expenses.

Incorporating these tips into your expense management routine can significantly streamline the process, save you time, and enhance your financial efficiency. Remember, a smooth expense management process is not just about saving money – it’s about enabling you to focus on what matters most, whether it’s growing your business or enjoying peace of mind in your personal finances. Happy expense tracking!

Ready to revolutionise your expense process?

Unlock the power of expense approval workflows, streamline your expense policy compliance, and experience firsthand how our expense analytics tools can simplify your expense audit. Don’t miss out on this opportunity to shape your future.

Book Your Demo and step into a world of possibilities!

Top 5 Expense Management Tools Every Business Needs

Picture this: you’re running a business, and the expenses are piling up faster than you can say ‘penny wise.’

In the world of modern business, keeping tabs on your finances is like trying to hold onto a fistful of confetti in a gusty British breeze – challenging, to say the least.

But fear not, dear reader, for we’re about to unveil the top 5 expense management tools that will have your business accounts so well-organised, even Elon Musk would give a nod of approval.

How Important is Expense Management?

In the intricate web of business operations, managing expenses is a fundamental thread that can’t be overlooked. An efficient expense management system not only helps businesses maintain financial health but also contributes to their overall success. To navigate this financial landscape with precision, businesses need the right tools in their arsenal.

Let’s explore the top 5 expense management tools that every business needs:

1. Expense Tracking Software

Expense tracking software is the backbone of any expense management system. It provides businesses with the capability to monitor, record, and categorise expenses efficiently. Leading software like QuickBooks, Xero, and FreshBooks offer user-friendly interfaces, making it easy to input and organise expenses. From office supplies to travel expenses, this tool helps keep your financial records in impeccable order.

2. Mileage Tracking Software

For businesses that rely on transportation, mileage tracking software is a game-changer. It allows you to accurately log business-related travel, ensuring you claim legitimate deductions and reimbursements. Tools like MileIQ and TripLog offer GPS tracking features, making it seamless to record every mile travelled for business purposes.

3. Receipt Scanners

In today’s digitised world, keeping stacks of paper receipts is outdated and impractical. Receipt scanners and Optical Character Recognition (OCR) technology come to the rescue. With a simple scan, paper receipts are transformed into digital records. This not only saves space but also ensures that your expense data is easily accessible and searchable.

4. Corporate Credit Cards

Corporate credit cards offer a dual advantage in expense management. They simplify the payment process and offer built-in expense tracking features. Employees can use these cards for business expenses, and the transactions are automatically recorded in the system. This streamlines the expense reporting process and enhances control over spending.

5. Expense Analytics Tools

To make informed financial decisions, you need more than just data – you need insights. Expense analytics tools like Tableau and Power BI provide in-depth reports and visualisations. These tools transform raw expense data into actionable insights, helping you identify cost-saving opportunities, trends, and areas where efficiency can be improved.

Is There a Single Provider That Can Address All Your Business Needs?

Capture Expense is the perfect all-in-one platform because it covers the entire expense management process, from tracking and recording expenses to managing mileage, digitising receipts, streamlining payments, and providing actionable insights.

This comprehensive approach ensures that businesses have a unified solution to manage their expenses effectively and efficiently.

Say goodbye to spreadsheets with Capture Expense

Save time and money by making the process a breeze by automating reimbursements, vehicle mileage and credit card reconciliation.

Ready to Revolutionise Your Business?

Unlock the power of expense approval workflows, streamline your expense policy compliance, and experience firsthand how our expense analytics tools can simplify your expense audit. Don’t miss out on this opportunity to shape your future.

Book Your Demo and step into a world of possibilities!

Preventing Expense Fraud: 7 Strategies for Businesses

Expense Fraud

Expense management is a crucial aspect of running a successful business. In today’s world, where financial transparency is paramount, it’s essential to ensure that your organisation’s expenses are handled efficiently and, most importantly, honestly.

Expense fraud is a real threat and if it’s left unchecked it can cost businesses a lot of money. But don’t worry, we’ll explore how businesses can prevent expense fraud, highlighting the benefits of robust expense management along the way.

The Cost of Expense Fraud

Expense fraud can take various forms, including inflated expense claims, fictitious receipts, and unauthorised spending. These fraudulent activities can heavily impact a company’s bottom line. According to a study by the Association of Certified Fraud Examiners (ACFE), expense reimbursement fraud accounts for 15% of all employee fraud cases, with a median loss of £26,000 per case.

Now, let’s dive into strategies to prevent expense fraud and the significant advantages of effective expense management.

1. Implement Clear Expense Policies

To combat expense fraud, start by establishing clear and comprehensive expense policies. These policies should outline the procedures for submitting expenses, acceptable expenses, and the documentation required for reimbursement. Make sure that every employee understands and acknowledges these policies.

Benefit: Clear expense policies promote transparency and set expectations, reducing the likelihood of fraudulent claims.

2. Demand Detailed Receipts and Documentation

Require employees to submit detailed receipts and supporting documents for every expense. This documentation should include dates, vendors, itemised expenses, and the purpose of the expense. Expense management software can streamline this process.

Benefit: Detailed documentation makes it easier to detect fraudulent claims and ensures expenses are justified.

3. Implement Expense Management Software

Expense management software can be a game-changer for your business. These tools automate expense tracking, streamline approval workflows, and provide real-time insights into spending patterns. They also allow for the integration of company credit cards and mobile expense submission.

Benefit: Expense management software not only reduces the risk of fraud but also saves time and money by simplifying expense reporting.

4. Audit Expense Reports Regularly

Frequent audits of expense reports can help detect fraudulent activities. Consider implementing random or targeted audits to ensure compliance with your expense policies. The ACFE report mentioned earlier show that organisations with proactive auditing experience lower losses due to fraud.

Benefit: Regular audits deter employees from attempting expense fraud, ensuring compliance and accountability.

5. Encourage Whistleblowing and Reporting

Create a culture where employees feel comfortable reporting suspicious expenses or behaviours. Whistleblowing channels can serve as early warning systems, allowing you to address potential issues before they escalate.

Benefit: Encouraging reporting can help uncover fraudulent activities that might otherwise go unnoticed.

6. Educate Employees on Expense Fraud

Regularly train employees on the dangers of expense fraud and the importance of adhering to expense policies. Awareness can be a powerful deterrent against fraudulent activities.

Benefit: Educated employees are more likely to be vigilant and compliant, reducing the risk of expense fraud.

7. Use Data Analytics

Utilise data analytics to identify unusual spending patterns and outliers. Advanced algorithms can flag potentially fraudulent expenses for further investigation.

Benefit: Data analytics can significantly enhance your ability to detect expense fraud in real time, preventing losses.

In Summary

Expense fraud is a serious threat to businesses, but with the right strategies and tools, it can be effectively prevented. Implementing clear expense policies, requiring detailed documentation, using expense management software, conducting regular audits, encouraging reporting, educating employees and leveraging data analytics can help protect your organisations financial health.

The benefits of effective expense management can go beyond fraud prevention. They include increased transparency, reduced administrative burdens, improved financial control, and ultimately, greater profitability. By prioritising expense management, businesses can not only safeguard their resources but also enhance their overall financial wellbeing.

Ready to Revolutionise Your Business?

Unlock the power of corporate card reconciliation, streamline your expense policy compliance, and experience firsthand how our integrated expense solutions can simplify your expense audit. Don’t miss out on this opportunity to shape your future.

Book Your Demo and step into the world of expense automation.

Effective Expense Tracking for Small Businesses

Expense tracking for small businesses

We’re about to embark on a journey that’s essential for the success of your small business: effective expense tracking. Whether you’re just starting out or looking to up your financial game, this guide is here to help you steer your ship towards smoother waters while keeping that friendly smile intact.

Why Effective Expense Tracking Matters

Ah, the thrill of running a small business – the late nights, the big dreams, and the satisfying sense of creating something from scratch. But amidst the excitement, there’s one crucial task that can’t be overlooked: tracking your expenses. Why, you ask? Because it’s like having a treasure map to navigate your financial voyage.

Picture this: you’re at the helm of your business, and you’ve got a clear view of every pound coming in and going out. That’s the power of effective expense tracking. It’s not about being a finance guru; it’s about gaining control, making informed decisions, avoiding pitfalls, and chartering a course of growth.

Budgets, Budgets, Budgets

Think of your budget as a compass guiding your business decisions. Allocate funds to different categories and stick to them. It’s like a game – how can you optimise your spending to reach your goals faster?

Setting a budget is one thing; sticking to it is another. Your expense management system keeps an eye on your spending habits, sending gentle reminders when you’re near your limits. This proactive approach prevents overspending and keeps your financial goals on track.

So, why should you consider jumping on the expense tracking bandwagon? Well, here’s the scoop: small businesses often overspend by 30% due to inefficient expense management (Certify, 2020). But when you bring in an expense tracking system, you’re arming yourself with a solution that slashes unnecessary costs leading to improved cash flow and increased savings – helping to keep you within that all important budget.

Real-Time Visibility for Smarter Decisions

Just like sorting beads for your craft project, categorising expenses is the key to a beautifully organised financial picture. Label expenses as marketing, utilities, salaries – whatever fits your business. This simple step brings clarity to your spending habits. With an expense management system, like Capture Expense, you can easily categorise expenses – from office supplies to client meetings.

Imagine having a crystal ball that shows you where your money is going. With an expense tracking system, you get just that. An expense management system allows you to track expenses as they happen, giving you a real-time view of your financial landscape. No more surprises, just clear insights. Nearly 87% of small businesses find real-time expense tracking to be a game-changer (Association of Certified Fraud Examiners, 2022). You can monitor spending trends, identify areas for cost-cutting, and make informed decisions that shape your financial future.

Simplifying the Tax Season Shuffle

Oh, tax season – the time of year that sending shivers down every business owner’s spine. But fret not, an expense tracking system can make it a breeze. A survey showed that businesses using expense management systems reduce their tax preparation time by up to 25% (Certify, 2022). That means less stress, fewer errors, and more time to focus on growing your business.

Unleashing Your Team’s Full Potential

Let’s talk teamwork. When your team can easily submit expenses and track them, they’re more productive and motivated. About 65% of small business owners report improved teamwork and collaboration after adopting an expense tracking system (PayStream Advisors, 2019). An expense management system allows your team to submit expenses effortlessly, streamlining the approval process. No more chasing down receipts or deciphering handwritten notes meaning your team can put their energy into what truly matters.

The Financial Future You Deserve

If you’re still wondering whether an expense tracking system is worth the investment, consider this: businesses that use these systems reduce their operational costs by up to 20% (GBTA, 2021). That’s a fifth of your expenses saved, which can be reinvested into your growth strategies, marketing efforts, or simply boosting your profits.

In fact, small businesses that implement expense tracking systems have been found to increase their profit margins by up to 10% (Aberdeen Group, 2020). That’s right, a simple tool can translate into more money in your pocket. By keeping an eye on your expenses, you’re not just managing your finances; you’re boosting your bottom line.

Your Time to Shine

Congratulations, you’re well on your way to becoming a small business financial guru! By mastering the art of effective expense tracking, you’re not only saving money but also setting the stage for growth and prosperity.

So, whether you’re a budding entrepreneur or a seasoned small business owner, remember that expense tracking isn’t a chore; it’s your secret weapon for financial success. With every pound accounted for, you’re charting a course towards brighter horizons, more confident decisions, and a business that’s ready to conquer new heights.

The time has come to take control of your finance and steer your ship towards success. An expense tracking system isn’t just a tool; it’s your companion on this exciting journey. By implementing this system, you’re not just managing expenses – you’re transforming the way you do business, reaping financial rewards, and setting yourself up for long-term growth.

Ready to make your mark? The path to success starts with effective expense tracking. Start your journey today.