Accounting: Travel & Entertainment Reimbursement

Every company, large or small, should have an expense reimbursement policy. Here are some helpful hints to ensure consistent travel spending:

  1. If there is not an official policy, create one.
  2. Make sure the policy is known. Employees can’t be expected to follow T&E policies if they don’t know what they are. Set company standards that apply to all staff equally.
  3. Distribute to all employees via all avenues: hard copy, soft copy, email, and post on the internal company directory.
  4. Include an easy-to- use form.
  5. Require receipts & documentation for all reimbursements.
  6. Task accounting personnel with review of each expense report.
  7. Review the policy annually for any applicable changes based on business.
  8. Republish (even if there are no changes) once a year.

For small organizations with little or infrequent travel, the policy should at least cover:

  1. Mileage – reimburse at the rate published by the IRS
  2. Personal telephone expense
  3. Parking, bridge & tool fees when traveling on business. Vehicle infractions are not reimbursable.
  4. Customer Meals & Entertainment with documentation.

All reimbursement requests must be approved by a supervisor or manager.

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