If the business traveler elects to fly in business, he will be reimbursed an amount equivalent to an economy airfare. The current mileage allowance rate is 45p per mile for the first 10, 000 miles and 25p thereafter. Mileage should reflect the actual mileage driven using the most direct route. Mileage reimbursement covers fuel, insurance, maintenance and repairs. Therefore, those won't be reimbursed separately. Details of the journey, including reason for the journey, date, starting point and destination, should added to the claim. It's the responsibility of the claimant to use a vehicle that is roadworthy and sufficiently insured. The company will reimburse parking expenses when a supporting receipt is submitted, however, parking fines or other fines won't be reimbursed. Car hire is allowed if it is more cost-effective than taking public transport. In this case GPS hire will also be reimbursed. This section gives guidance on: The type of hotel to book When to book and who is responsible for reclaiming reimbursement when there is a cancelation The price range for what is acceptable.
Make sure yours is visible. Email it to employees, put it on your noticeboards or intranet, or print a copy for every staff member. 1 Travel & Entertainment Expense Management Report, Aberdeen Group, August 2006 11 Tips for Creat ing an Expense Policy 3 7. Emphasize the positives Implementing a new policy will require a period of adjustment for employees. You might hold a training to explain the reasons for implementing/changing the policy so that everyone understands its benefits and purpose. If there's a policy in place that everyone understands, the chances are it will be easier to approve submitted expenses. 8. Help managers lead by example Since almost 20% of all submitted expense claims contain out-of-policy spend, it's sensible to focus on reducing that percentage. Managers who approve expenses are your first line of defense in the expense-claim process, so it's good to get them on your side. Setting management tar gets for policy compliance can drive down the number of out-of-policy claims.
Ask team members to participate in the process. If they help develop the expense policy they'll see why it's necessary and will be more likely to stick to the rules and encourage others to do the same. 4. Use sensible, localized rules Sometimes a one-size-fits-all policy won't work across an entire company. Write your policy to guide behaviour, but be flexible enough to adapt to local requirements— such as higher hotel costs in more expensive cities. You could include a table of acceptable regional rates or use a system that flags out-of-policy spend at the time it's booked, to avoid unpleasant surprises later in the expense-claim process. 5. Make it flat Unless there is a very good reason to have different rules for different people, create a policy that applies to all employees across the company. Keep it fair and simple. All-encompassing policies are also easier to implement, manage and control. 6. Make it easy to find Even the most fair and equitable policy won't be followed unless people know about it.
4. Make it easy to find and easy to use: Your expense policy won't be followed unless people know about it. Make sure yours is visible and easy for company employees to find. Emphasize the positives of a revised expense policy and lead by example Hold a training session for employees, accounting and human resources teams to explain your expense policy's benefits and purpose. Familiarizing managers who approve expenses with the content, the importance of compliance, and the reasons for implementing the policy can help them confidently enforce the rules. Consider helpful software tools and leverage existing technology An automated solution that automatically populates charges from suppliers, credit card companies, common expense categories and receipts such as business meal expenses, car rentals, dry cleaning, hotel rooms and airfare will save time and allow you to focus on your core business purpose. Choose an expense management solution that works with mobile devices and allows for the submission and approval of employee expenses via photographed receipts no matter where you or your employees are.
Other legal expenses that are incurred in connection with legal services are postage and courier fees, photocopying fees, court filing fees, telephone charges, etc. Similarly, traveling expenses incurred by the lawyer and recovered from the company. Legal fees to be paid to attorney differ depending on the type of case, type of attorney, and the region. However, personal legal fees of employees and owners of businesses are not charged to the Profit and Loss Account. Only those legal fees incurred in connection with business are recorded in the Profit and Loss Account of the company. Many times, there is a time lag in the billing of legal expenses. For instance, many legal expenses may be incurred in the financial year 2018-19. However, they may be billed in 2019-20. In such a scenario, they are recorded in the financial year 2018-19 in the Profit and Loss Account. In addition, they are recorded as a liability in the Balance Sheet at the end of the financial year 2018-19. Similarly, in certain cases, legal expenses are paid in advance.