Business expense reports | Traveldoo
How to manage your expense reports? Business expense reports relate to expenses incurred by employees in the interest of the company during business trips (transport, accommodation, restaurants, etc.). These expense reports must be managed carefully to avoid any risk of tax adjustment. In doing so, it is important to meet the specific requirements relating to the expense report processing stages, from accounting through to reimbursement, and to adhere to certain tax rules.
The management of expense reports
Expense reports are frequently examined during a tax audit. It is therefore very important to approach them with particular care. To manage your business expenses as effectively as possible, you need to know about the different methods of reimbursement in order to choose the one that best suits your needs and to complete expense reports correctly.
The different methods of expense report reimbursement
In order to be reimbursed, expense reports must be reasonable and accompanied by receipts or invoices. There are 3 methods for reimbursing business expense reports:
The reimbursement of actual expenses incurred
If you choose this reimbursement method, you must reimburse the exact amounts paid up front by employees. This may include toll tickets during business trips or restaurant bills for business meals.
The flat-rate reimbursement of expenses
This involves reimbursing employees on the basis of a flat-rate scale. In the case of regular business trips, the company may opt for this reimbursement method. Employees will, in this case, be automatically reimbursed to the tune of a fixed, regular amount. This method eliminates the requirement to justify each of the expense items with an invoice.
Completing an expense report
Expense reports are usually created at the end of the month, but it is possible to request an advance from the company. The law does not stipulate any deadline in this respect, but it should, however, be reasonable.
When completing an expense report, you must:
- Indicate all of the required information
- Attach all of the receipts or invoices.
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An efficient expense report management tool
The Traveldoo Expense solution has been created to facilitate the management of expense reports, from accounting through to reimbursement, which is often a long and tedious process. This intuitive application offers accountants, managers and business travellers efficient and customisable tools that facilitate processing and reduce reimbursement times.
Can all expenses be included in expense reports?
Expense reports are subject to strict rules and a specific tax framework, which must be followed, in order to avoid the risk of a tax adjustment. So not everything can be included in an expense report! Certain business expenses must comply with specific conditions to be reimbursed.
Any other expenses paid up front by the employee on behalf of the company may be included in the expense report provided that they are accompanied by supporting documents and comply with certain rules.