Business expense management | Traveldoo

How to optimise business expense management

Business expenses are expenses that employees incur in the interest of the company. Managing business expenses is often a complicated and time-consuming exercise requiring great care and attention! This is because the expense report reimbursement procedure is subject to certain conditions and specific rules. To prevent the exercise from becoming a headache or even a nightmare, putting in place an automated business expense management process tailored to your company is a necessary step.


The different types of expenses

Business expenses may vary in nature but certain conditions must be met to ensure their reimbursement:

  • Food and drink expenses (business meals or meal expenses during travel, etc.)
  • Accommodation expenses (hotels, etc.)
  • Travel expenses (fuel, tolls, parking, public transport, etc.)
    > For car rentals, the employee must cover all of the associated expenses (fuel, tolls and rental).
    > If his/her own car is used for business trips, the company will reimburse the employee for his/her mileage expenses in accordance with the rules set out by the tax authorities.
  • Business expenses for teleworkers
    In the case of teleworking, the company must cover a portion of the expenses incurred by the employee (percentage of rent, internet and mobile phone package, etc.).
  • NICT expenses (use of new technology tools)
  • Expenses for small office supplies and miscellaneous consumables


Reimbursement arrangements

There are two methods for reimbursing business expenses.  It is important that the company selects the method best suited to its needs, taking into account the type of expenses and its organisational structure. In addition, to optimise the management of business expenses and to make them less “complicated”, an automated, quick and reliable procedure must be put in place.

The two types of reimbursement method

The company may choose between two methods for the reimbursement of expense reports:

> The reimbursement of expense reports based on the actual expense amounts incurred

The company must reimburse the exact amount paid up front by the employee. It is essential that the employee supplies an invoice or payment receipt in order to produce an expense report.

Bear in mind that this type of reimbursement method must be used in the following cases:
– teleworking
– use of new information and communication technologies
– relocation expenses (moving place of work)
– expenses incurred by employees on secondment (in another country).

> The reimbursement of expense reports on a flat-rate basis

If employees make recurring purchases, during regular business trips for example, the company may opt for the flat-rate reimbursement method. The employees will, in this case, be automatically reimbursed to the tune of a fixed, regular amount. This may include a flat-rate monthly reimbursement of mileage expenses, train expenses or food and drink expenses, etc. This method eliminates the need to justify each expense item with an invoice.

Automated and paperless reimbursement process

To simplify the expense report reimbursement process, it is recommended that you:

  • define a reimbursement policy in advance
  • standardise the reimbursement procedure (standard expense report claims, approval path, method of transmission to the accounts department, etc.)
  • maintain a record of expense reports by employee, expense type and customer/client.

This clear and thorough procedure will save a considerable amount of time for accountants and managers as well as employees, whilst allowing them to monitor and analyse costs.

In addition, it also highly recommended that business expenses management is automated and paperless in order to reduce the reimbursement time and to increase the reliability of the process. This will help to achieve considerable time and cost savings.

You can make the process associated with the reimbursement of expense reports much smoother by using an intuitive and comprehensive business expense management software solution. This solution, Traveldoo expense, simplifies expense report management and the reimbursement process through its efficient and customisable tools that facilitate processing and reduce reimbursement times (automated, paperless processing of expense reports and supporting documents, geolocalisation, etc.).

Business expense management requires the establishment of a reliable, standardised and automated reimbursement process. The Traveldoo Expense solution optimises expense report management through its innovative features tailored to the needs of businesses. Test it for yourself now!

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