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:
- If there is not an official policy, create one.
- 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.
- Distribute to all employees via all avenues: hard copy, soft copy, email, and post on the internal company directory.
- Include an easy-to- use form.
- Require receipts & documentation for all reimbursements.
- Task accounting personnel with review of each expense report.
- Review the policy annually for any applicable changes based on business.
- Republish (even if there are no changes) once a year.
For small organizations with little or infrequent travel, the policy should at least cover:
- Mileage – reimburse at the rate published by the IRS
- Personal telephone expense
- Parking, bridge & tool fees when traveling on business. Vehicle infractions are not reimbursable.
- Customer Meals & Entertainment with documentation.
All reimbursement requests must be approved by a supervisor or manager.