Why Claim Travel and Business Expenses?
Employees who travel for work incur costs that are directly related to the performance of their duties. Reimbursing these costs serves several purposes:
- Fairness: Employees are not outofpocket for money they spent on behalf of the company.
- Compliance: Accurate records help organisations meet tax and audit requirements.
- Budget Control: Tracking expenses provides insight into travel spend and supports better budgeting.
- Employee Satisfaction: A clear, prompt reimbursement process improves morale and productivity.
Company Travel Policy Key Elements
Before you start a trip, review the official travel policy. Most policies include the following components:
- Eligibility Who may travel and for what purposes.
- Preapproval Required manager or finance approval before booking.
- Preferred Vendors Approved airlines, hotels, and carrental companies.
- Travel Class Economy for flights under 5hours, business for longer journeys, etc.
- Perdiems & Allowances Daily rates for meals and incidentals.
- Receipts Which expenses need original receipts and electronic copies.
- Submission Deadline Usually within 30 days of return.
Tip: Keep a copy of the policy handy on your phone. Most organisations host a PDF on the intranet.
StepbyStep Claim Process
The following workflow works for most companies that use an online expenses platform (e.g., Concur, Expensify, Zoho Expense).
1. Prepare Before You Go
- Obtain travel authorization and note the approved budget.
- Save the booking confirmations (flight, hotel, car). Store them in a cloud folder for easy access.
- If a perdiem applies, note the daily rate for the destination.
2. Capture Receipts During the Trip
- Take a clear photo of every receipt within 24hours.
- Label the image with the date and expense type (e.g., 20240503MealTokyo).
- Record cash tips or tolls in a small notebook if you cannot scan immediately.
3. Enter Expenses in the System
| Expense Type | What to Include | Documentation Needed |
|---|---|---|
| Airfare | Ticket price, taxes, baggage fees | Electronic ticket receipt |
| Accommodation | Hotel bill, taxes, WiFi fees | Hotel invoice (PDF or photo) |
| Meals | Food and nonalcoholic drinks | Itemised receipt; perdiem alternative if allowed |
| Ground Transport | Taxi, rideshare, rental car, public transit | Receipt or rental agreement |
| Miscellaneous | Parking, tolls, internet, business supplies | Receipt or official invoice |
4. Review & Submit
- Check that totals match the approved budget.
- Attach all receipt images to the corresponding line items.
- Select the appropriate cost centre or project code.
- Submit for manager approval.
5. Followup
- If the claim is returned for correction, act promptly.
- Once approved, finance will process payment typically within 510 business days.
- Save a copy of the final reimbursement report for your records.
Tips & Best Practices
- Use a dedicated credit card for business travel; it simplifies tracking and often provides extra purchase protection.
- Combine expenses where possible. For example, a single receipt for a restaurant bill that includes multiple meals can be split in the system.
- Know the exchangerate rule. Most policies require the rate published by the central bank on the transaction date.
- Avoid personal expenses. Items like entertainment for family members, personal souvenirs, or fines are nonreimbursable.
- Leverage mobile apps. Many expense tools allow you to scan receipts directly from your phone, automatically extracting date, vendor and amount.
- Check tax implications. Some countries require a VAT receipt for the full amount to be reclaimed.
- Plan for unexpected costs. Keep a small contingency budget and document the reason for any unplanned expense.
Frequently Asked Questions
Q: What if I lose a receipt?
A: Most policies allow a signed statement or a bank statement as a backup for amounts under a certain threshold (e.g., $25). Contact finance for the exact requirement.
Q: Can I claim a perdiem instead of individual meal receipts?
A: Yes, if the destination is covered by the perdiem schedule. Ensure you do not submit both a perdiem and itemised meal receipts for the same day.
Q: How are international travel expenses treated?
A: Convert all foreigncurrency expenses to the companys base currency using the official exchange rate on the day of the transaction. Keep a copy of the conversion source (e.g., OANDA, XE).
Q: Who approves my claim?
A: First your direct manager, then the finance department. Some organisations require additional approval for expenses over a set amount.
Q: What happens if my claim is rejected?
A: Review the rejection notes, correct any missing documentation or policy violations, and resubmit. Persistent issues may require a discussion with your manager.
