Expense reports accounting | Traveldoo

Accounting for business expenses via expense reports

Business expenses incurred by employees in the interest of the company (plane tickets, accommodation, restaurants, etc.) are reimbursed to them after they have completed an expense report. The process of accounting for and recording expense reports must be carried out with particular care and follow certain rules because they are frequently examined during a tax audit.  Let’s take a look in detail.


Expense report accounting: which expenses are covered?

During business trips or in the course of their professional duties, employees may be required to pay for the following expenses up front:

  • hotels
  • restaurants
  • trains, planes or car rentals
  • customer/client restaurant invitations
  • business gifts to customers, clients, suppliers, prospects, etc.
  • purchases of documentation and supplies.

To be accounted for in an expense report and then reimbursed, employee expenses must comply with strict rules relating to accounting and tax practices.


Expense report: what are the accounting challenges?

Expense report accounting must follow specific rules and must be carried out carefully and methodically.

Which rules must be followed? 

To account for expenses incurred by employees in an expense report and to optimise the expense report management process, it is essential to:

  • Provide supporting documents (invoices, tickets, receipts, restaurant bills, etc.) and additional information (place, reason, number of miles travelled in the case of a trip, for example) along with the completed expense report.
  • File the supporting documents by purchase date
  • Group the expenses in the expense report by expense type: restaurant expenses, travel expenses, etc.
  • Indicate the following amounts in the expense report: Amount excluding taxes, the VAT amount and the total excluding taxes, as the company can recover VAT (if indicated on the invoice and if the purchase falls within its scope).

It is important to note that expense reports are frequently examined during a tax audit. If fraud or improper accounting is detected, you will be liable for national insurance, employee and employer contributions.

It is extremely important that expense reports are clear and detailed in order to facilitate and simplify accounting processes. Standardising the expense report management process (by offering a standard expense report form, etc.) is therefore key.

A simplified process of accounting for and recording expense reports

The Traveldoo Expense solution is designed to facilitate expense report accounting and recording. This solution provides genuine time savings and allows you to automate the review and approval of expense reports, easily identify the expense types and simplify their accounting treatment. This intuitive process makes accounting for and recording expense reports simple and speeds up reimbursement.

Expense report accounting therefore needs to be carried out carefully and methodically. It is essential that certain accounting and tax rules are followed. The Traveldoo Expense software allows you to simplify this often long and complicated process, making it more efficient, quicker and more reliable. Find out more about all of its innovative features now!

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