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Do you run a small business or non-profit organisation? Do you or your employees travel for business purposes?
If your answer to these questions is “yes”, then it’s a good idea to have a policy in place that governs your and your employees’ travelling expenses. Not yet thought about this? — Don’t Panic! — Read on for all the information you need.
A small business travel expense policy outlines rules for employee spending and reporting on work trips. It helps manage and control business travel costs, making sure they match your company's goals and financial limits.
A business travel expense policy contributes to financial responsibility, operational efficiency and employee satisfaction within your organisation. It ensures consistency and transparency, as well as supporting your financial planning and budgeting.
What’s more, having a policy in place provides a level of legal protection for your organisation. It demonstrates that you have clear guidelines and processes in place, which can be useful in the event of any disputes or legal inquiries related to travel expenses.
Small businesses and non-profits need a travel expense policy as a guide for spending on business trips. It helps you manage your limited funds wisely, ensuring you're spending efficiently and within set limits. It also ensures fairness amongst your employees, reduces confusion about what's allowed and makes it easier for your staff to be reimbursed for their expenses.
All in all, it builds trust within your organisation, encourages responsible spending and ensures compliance with legal and tax regulations. Ultimately, a business travel expense policy contributes to the overall financial health, transparency and efficiency of your small business or non-profit organisation.
A comprehensive business travel expense policy should provide clear guidelines for employees and ensure effective management of expenses.
Think about all the possible spending scenarios your employees might face and make sure they know exactly what expenses are covered, how they should go about booking and paying for their trip, how they will be reimbursed for things they pay for themselves and any relevant restrictions they should bear in mind.
Here’s a sample of the different sections you might want to include in your small business travel expense policy.
Purpose and Scope: clearly state the policy’s purpose and specify its scope, including which types of expenses are covered.
Authorisation and Approval: outline the process for obtaining authorisation before making travel arrangements. Define the approval hierarchy and who is responsible for approving travel plans.
Transportation Expenses: detail guidelines for booking and reimbursing transportation expenses, including airfare, train tickets and rental cars. Specify any class or seat restrictions.
Accommodation Expenses: provide guidelines for selecting and reimbursing accommodation expenses, including acceptable options and daily room rate limits.
Meals and Incidentals: establish per diem or daily allowances for meals and incidental expenses. Clarify what types of expenses are considered incidental and eligible for reimbursement.
Ground Transportation: address expenses related to local transportation during the business trip, such as taxis, ride-share services or public transportation.
Communication Expenses: specify guidelines for reimbursing expenses related to communication, such as mobile phone charges or internet fees during travel.
Entertainment Expenses: guide entertainment expenses incurred during business travel, including any limitations or approval requirements.
Expense Documentation: clearly outline the documentation requirements for reimbursement, including receipts for accommodation, transportation, meals and other eligible expenses.
Reimbursement Procedures: detail the process for submitting and processing travel expense reimbursement claims. Specify the timeline for submission and the method of reimbursement.
Spending Limits: set limits on certain expenses to control costs, such as daily or per-meal limits.
International Travel: address specific considerations for international travel, including currency exchange, visa requirements and other cross-border considerations.
Policy Compliance: emphasise the importance of compliance with the travel expense policy. Communicate the consequences for non-compliance.
Updates and Communication: establish a process for updating the policy and communicating changes to employees. Ensure that employees are aware of and understand the policy.
Record Keeping: encourage employees to keep accurate records of their expenses for auditing and reporting purposes.
Legal Compliance: ensure that the policy aligns with relevant tax laws and other regulations to avoid legal issues.
Exceptions and Special Circumstances: define any circumstances under which exceptions to the policy may be considered. Outline the process for requesting and approving exceptions.
Employee Responsibilities: clearly define employees’ responsibilities in adhering to the policy, including timely submission of expense reports and accurate documentation.
FREENOW’s Business Travel Service is a flexible tool that puts organising business travel in the hands of those who need it without adding any extra stress.
You or your employees can organise trips in a way that suits you while keeping synched in with a central management system. With our business travel solution, you get all of these benefits and more, depending on your service type:
Use your dedicated business dashboard to manage your employee profiles, set budget limits and track everyone’s expenses.
Your employees can easily request rides through the FREENOW App, ensuring problem-free, cashless transactions.
The platform provides detailed invoices that include details of each journey, simplifying your accounts processes.
Get detailed expense reports at the click of a button, centralise your payments and pay with one monthly invoice.
FREENOW's business travel services enhance your control, transparency and convenience, optimising your business travel expense management in a user-friendly and cost-effective manner. So, what are you waiting for? Jump on board and let FREENOW help you get your business travel expense policy up and running now.
Sign up for our business travel solution and alleviate your expensing here.
