Controlling corporate travel expenses is meticulous yet crucial task. Having online expense report software is not just enough, you need to have some expense policies in place as guidelines for handling the expenses pertaining to employee travel. These policies will help your employees understand what expenses are reimbursable and what can be submitted as expense claims.
If your employees are not given a company vehicle, establishing a mileage policy will help you auto-calculate the distance traveled by the employee. Each company can have its own policy and the policy set will differ based on the department or designation of the employee.
Policy on Rules
The rules you define should be specific to the company, and every company can set different rules as they see fit. For instance, you can set a specific rule for per diems and meals, travel expenses, miscellaneous expenses and so forth. Each company can set its own policies for different categories so as to control the employee spending. These policies should be enforced strictly to avoid company money being exploited.
Policy on Receipt Processing
Each company has its way of processing receipts. Some companies might use Optical Character Recognition technology to verify and validate expenses, while some use corporate cards to reconcile transactions. Mandating receipts is also a way to process expense reports. So, establishing a way to set validate receipts can help companies combat expense fraud.
Policy on International Travel
When it comes to international travel, currency exchange is something that bothers all of us. You have to clearly state which currency employees will be paid in and how they will be reimbursed for expenses. As the currency differs from country to country, your expense report solution should automatically convert currencies in the default currency configured by the company. Insurance cover – medical and travel insurance is another thing that employees require traveling overseas. So, your expense management system should have this configured.
These are some of the travel expense policies your company should have. However, depending on the sector in which your company works in, other policies can be enforced in accordance with your business.