Accounting expense reports | Traveldoo
What is an accounting expense report? Expense reports track expenses incurred on behalf of the company during business trips (plane tickets, accommodation, restaurants, taxis, other activities, etc.). These professional expenses must be accompanied by proof (tickets, invoices, etc.) and additional information. These documents are submitted to the accounting department, which in turn is responsible for recording and storing them so that they can then be reimbursed. This process of accounting and recording expense reports must be done carefully because they are frequently examined during inspection or tax audit. But it requires time and resources. That’s why Traveldoo – a subsidiary of Expedia Group and a provider of travel and expense management platforms – supplies accountants with comprehensive expense management software, Traveldoo Expense. This allows them to record and save business expenses quickly and easily. Here’s how it works.
How to record expense reports
Posting expense reports is particularly important for accounting. Specific rules must be adhered to and it needs to be carried out with care and organisation. But it is often considered a very time-consuming exercise.
The Traveldoo Expense solution is ideal for performing this operation quickly and efficiently.
Rules to be respected when recording an expense in an expense report
To record expenses, it is essential to have proof (invoices, tickets, receipts, bills, etc.), additional information (place, reason, number of miles travelled in the case of a trip, for example) together with the expense report created.
Expenses must then comply with certain rules in order to be recorded in expense reports:
- In the case of a meal at a restaurant, the names of the guests and the reason for the meal must be recorded.
- To claim for a night at a hotel, the hotel must be located more than 31 miles from the company or more than an hour-and-a-half’s drive from the employee’s home.
- “Business gifts” must be for a reasonable amount. VAT is deductible for gifts with a value of less than €65.
- For mileage reimbursement, it is necessary to provide specific information (vehicle used, tax rating, route taken, vehicle registration, etc.).
In addition, each employer is free to define their own rules to avoid any abuse, such as a maximum amount not to be exceeded per category (accommodation, restaurant, transport, etc.).
How to account for expenses with Traveldoo expense
The Traveldoo Expense solution has been created to facilitate expense report accounting, which is often a long and tedious process.
Employee costs could be:
- Hotels, restaurants, transport (train, plane, car rental) when travelling
- Taking customers for meals in a restaurant
- Gifts for customers, employees or suppliers
- Purchase of supplies and resources.
By using Traveldoo Expense software, you will be able to easily and quickly record your company’s expense reports by not only reconciling order flows and expenses or payment flows, but also by controlling and validating budget allocations.
This solution offers a real time saving in the accounting of expense reports and allows you to:
- Automate the control and validation of expense reports (multi-criteria and multi-level).
- Promote compliance with your travel and expense policy.
- Check the breakdown of expenses, budget allocation and justification (based on receipts provided by employees in the system).
- Reconcile order flows and expense or payment flows, to process the reimbursement of expenses according to your company’s rules and to prepare for VAT recovery.
In addition, the mobile application of Traveldoo Expense allows approvers (accountants, etc.) to use their smartphone or tablet to check and validate employees’ expense reports at any time.
This intuitive process makes it easy to reconcile expense reports and process reimbursements faster.
What are the risks in the event of incorrect expense report accounting?
Expense reports are often looked at during an inspection or tax audit. Therefore, the management and recording of expense reports must be optimised. If fraud is detected, you will be subject to social, employee and employer charges.
Recording expense reports
Each expense is linked to a category belonging to a specific account. As for vendor invoices, expense reports are posted using different accounts. The most frequently used categories are:
- Travel expenses (plane tickets, train, underground, etc.)
- Accommodation costs (hotel, etc.)
- Work expenses (for example, taxi receipts)
- Reception expenses (restaurant meals, etc.)
- Administrative supplies (small purchases, etc.)
- General supplies (books, magazines, etc.)
There are also other types of reimbursement such as mileage allowances (to be entered into the “Miscellaneous allowances and benefits” account), and transport costs (to be entered into the “Other company costs” account).
With Traveldoo Expense, the expense accounting and recording solution, you can easily identify expense types and simplify their accounting processes. This innovative solution allows you to link expense types to accounting codes to integrate them into your ERP or accounting solution in the best way for you.
The Traveldoo Expense software is essential to manage expense reports as efficiently as possible. It simplifies the often lengthy and complicated process of expense accounting by making it more fluid, fast and reliable. Reimbursement times will also be shortened.