Be Candid About Exceptions, Accruals and Other Possible Drawbacks
The relocation process is never 100 percent predictable, and each relocation is as unique as the transferees being moved. For instance, unlike more prevalent type of home appraisals for mortgages, relocation home appraisals are only valid for a set time period and may be adjusted later. Also, your financial department may not be aware that relocations are not always closed in the year they were initiated. We know these as “accruals” in the relocation industry. Utilizing a relocation management company’s tracking system will guarantee you obtain accurate data on accruals to share with your CFO.
In addition to these obstacles, there are exceptions that must be integrated into the budget to satisfy certain transferees’ needs. Effective exception management is critical to decreasing inconsistencies that can sabotage any efforts to predict relocation costs. At RCI, we suggest constructing a strict protocol for permitting exceptions. Another favorable strategy is assigning the responsibility of regulating all exception requests to one person on your team or with your relocation provider. Make certain the person in this position frequently updates your CFO with trends and fiscal data, because it is essential that your CFO comprehends these unexpected complications. When he or she is prepared, unplanned expenses will not seem as detrimental.