It’s also worth reviewing the booking tools that employees can use, how far in advance they should book to maximize savings, and how they should pay. And whilst a large corporation might need to include maximums for every major city and route in the world, a sufficient travel expense policy for small businesses might include just a few popular cities and routes that the company travels. It’s also important to bear in mind that budgets can fluctuate with the seasons, so you should aim to provide a general rule. This should be based upon your business’ current financial situation. There’s a lot to consider when arranging business travel.įor starters, it’s important to define budgets. What do small businesses need to include in their expense policy? They’ll thank you for this come tax season. An added benefit of having a documented expense policy is that your employees won’t need to declare their reimbursements as taxable income.Whoever is dealing with the business’ finance (in smaller companies, this might be the office manager) will have an easier time controlling company spending when there are restrictions in place that determine how much employees can spend. It makes employee spending more predictable.The most common expense policy violations arise from a lack of understanding of policy, alongside an unwillingness for having to search for the answer. It provides clear guidance to employees-they won’t have to check with finance every time they need to make a payment.But as far as expense management goes, a little bit of structure goes a long way, and there are benefits of having a travel expense policy:
#SMALL BUSINESS TRAVEL EXPENSES FREE#
One advantage of working in a small company is getting to work in an environment free of the bureaucracy that’s so common in larger organizations. Why should small businesses make a travel expense policy? It’s therefore suggested that you draw up a travel expense policy that falls somewhere in the middle. While companies are focused on cost, compliance, and safety, employees look for comfort, luxury, and convenience. It’s needed because when it comes to travel and expense management, the priorities of the organization and those of the employee don’t always align. What is a travel expense policy in a small business?Ī travel expense policy is a set of company rules setting out how employees can book corporate travel as well as spend money on work-related expenses. A well thought out travel expense policy will help your small business to minimize costs and maximize compliance when you have employees who travel on business. And it’s just as important for small businesses as it is for large ones - indeed, with tighter funds, it’s even more important in many cases. A simple guide to writing a travel expense policy for a small businessĮmployee travel and expenses is the second largest controllable cost after salaries, so it’s only sensible to create a travel expense policy.
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