Have you ever returned from a business trip with a mountain of receipts and a sinking feeling of dread about the travel expense reports you’d have to submit?
Well, you’re not alone. Sadly, a travel expense report (T&E report) is the key to ensuring your reimbursements arrive on time. We’ll tell you how you can make the process easier and even let you in on a little secret–that you’d never have to spend another second on it ever again.
How? Read on to find out.
What is a Travel Expense Report?
Think of a T&E report as a detailed log of your business travel expenses. It documents everything you spent on your trip–from flights, hotels, meals and miscellaneous expenses–for reimbursement by your employer.
It also serves as a record-keeping tool for the company, ensuring there’s proper visibility into spend and compliance with company policies.
Contents of a Travel and Expense Report
A typical T&E report includes the following sections:
- Employee Information: Your name and department.
- Trip Details: Destination, travel dates, and the purpose of your trip.
- Expense Categories: This is where you’ll breakdown your spending into clear categories:some text
- Transportation: Airfare, train tickets, mileage (if using a personal vehicle)
- Accommodation: Hotel stays, Airbnb rentals.
- Meals: You can either use a per diem rate (a pre-set daily allowance) or itemize each meal with receipts.
- Other Expenses: This includes any miscellaneous business-related expenses like local transportation, laundry charges, or business phone calls.
- Receipt Attachment: Receipts are crucial for verifying your expenses. Staple or scan them and attach them to your report.
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Why are T&E Reports Important?
Travel expense reports are more than a documentation hurdle–they’re really the cornerstone of financial discipline, transparency, and compliance within your organisation. Here’s why they matter:
- Budgeting and Cost Control: Travel expense reports clearly show your company’s travel expenditures. This empowers finance teams to track spending, manage costs effectively, and forecast future travel budgets more accurately.
- Policy Compliance and Streamlined Reimbursements: Detailed expense reports ensure employees adhere to company travel guidelines. This reduces errors and facilitates timely, accurate employee reimbursements, keeping employees happy and productive.
- Tax Compliance and Audit Trails: Itemized expense reports act as vital audit trails. They support tax deductions and ensure compliance with regulations, saving your company money in the long run.
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5 Ways You Can Simplify Travel Expense Reporting
Conquering travel expense reports doesn’t have to be a battle. Here are some tips you can use:
- Collect and Organize Receipts Diligently: Don’t let receipts disappear in the abyss of your bag or shoebox.
- Categorise Expenses Accurately: This makes tracking and reporting easier.
- Submit Expense Reports Promptly: The sooner you submit, the sooner you get reimbursed.
- Utilize Online or Mobile Apps: These can streamline the data entry process.
Or use the ultimate choice, a travel expense report software. You can automate the entire process to save yourself (and your company) time and money.
Templates can be a helpful starting point, but let's delve deeper and explore just how they’d stand up against a travel expense report software.
Travel Expense Report Template vs Travel Expense Report Software
The age-old question: Should I use a free travel expense report template or pay for travel expense report software? But did you know that a free expense report template might be costing you more than you realise?
Travel Expense Report Template
Travel expense report templates are free and readily available online, making them a seemingly attractive option. They’re simple and the perfect choice for an organization's most basic needs. However, they can be time-consuming (manual data entry), prone to errors, and cumbersome for frequent travelers.
Did you know? The average expense report takes a massive 20 minutes to process.
But this is just the tip of the iceberg. Here’s a breakdown of the true time cost when travel expense reports are processed manually:
- Employee: 5 minutes to fill and file (fiddling with receipts and data entry)
- Manager: 5 minutes to review and approve (chasing down missing receipts or seeking clarifications in the process)
- Finance team: 10 minutes to review, reimburse and reconcile (while correcting errors and chasing for approvals)
The Math Doesn’t Lie. That’s a total of 20 minutes per claim on average. But wait, there’s more! According to the Global Business Travel Association, a shocking 19% of all expense reports contain errors. And correcting each one takes an additional 18 minutes! Suddenly, that 20-minute claim balloons to a 38-minute ordeal.
Do you feel the time drain? It’s not just you. Imagine the productivity lost for both employees and your finance team. This inefficiency translates to real costs. GBTA found the average expense report costs a staggering $58 to process (and it’s likely that the number is even higher today.)
Let’s crunch these numbers together:
Imagine a company processing an average of 30 expense reports per month. Without errors, that's roughly $21,600 spent annually on the reporting process.
However, factor in those error corrections, and the annual cost jumps to nearly $33,120. That's over $11,500 wasted on fixing mistakes!
And it's important to remember this is just an example for a medium-sized company. For larger organizations with higher volumes of reports, the potential cost drain can be even more significant.
While templates seem like a free option, they’re costing you in hidden ways. Consider this: wouldn’t your time and money be spent focusing on core business functions?
Travel Expense Report Software
Now, why is this the superior alternative? Because it can automate the entire process for you at just $11:99 a month. But what does this really mean?
- Automated Receipt Capture: Tools like Fyle let you submit receipts via text message. Employees can text receipts for reimbursable or credit card expenses on the go.
- Real-Time Credit Card Feeds: Tools like Fyle integrate with all major credit card networks like Visa, Mastercard and American Express to give you instant text message notifications of all credit card spending.
- Automated Compliance: Travel expense report softwares perform policy checks in real-time to ensure policy violations are caught even before expense reports are submitted.
A travel expense report software doesn't just save time, it saves money. Imagine the cumulative effect of automating receipt collection, eliminating errors, streamlining approvals, and boosting employee productivity.
In Conclusion
Travel expense reports don’t have to be a source of stress. By understanding the purpose, components, and available tools, you can easily navigate the process.
While free templates can help you get started, exploring a travel expense report software is a no-brainer for growing organizations looking for better efficiency and cost savings.
Schedule a demo today to see how Fyle can help your travel expense reporting process!
FAQs
How to Save Money on Travel Expenses?
Smart spending habits go hand-in-hand with efficient reporting. Here are some things you can do:
- Compare Travel Options: Look for deals on flights and hotels.
- Plan Your Meals: Avoid unnecessary dining expenses by packing snacks or researching budget-friendly options.
- Explore Alternative Transporation: Consider public transportation or ridesharing apps.
- Leverage T&E Software: Gain insights into your spending habits to identify areas for cost reduction.
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What Are Acceptable Business Travel Expenses?
This can vary depending on your company’s specific travel policy, so it’s always best to check their guidelines first. Generally, acceptable expenses fall under these categories:
- Transportation: Flights, taxis, mileage, and parking fees.
- Accommodation: Hotel stays, Airbnb rentals, and incidental charges (reasonable room service or laundry).
- Meals: Per diem rates (a pre-set daily allowance) or itemized receipts for meals considered work-related (business lunches or client dinners).
- Other Expenses: Miscellaneous business-related costs like local transportation, laundry charges, business phone calls, or visa applications.
Pro tip: When in doubt, err on the side of caution and save all receipts. You can always clarify with your finance team later.
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How Long Do I Have To Submit A Travel Expense Report?
This varies by company, but it’s typically within 30 days of your trip’s completion. Some companies might offer shorter deadlines (like 15 days) of een allow for extensions under specific circumstances. Check with your company’s travel policy or finance department for their specific timeframe.
What Happens If I Lose A Receipt?
Inform your manager or finance team as soon as possible. Depending on the company policy, they might require an explanation or ask for alternative documentation (like credit card statements) to verify the expense.
