Business trips are an important part of a business as they help it effectively pursue its activities. Employees who go on a business trip must inform the company of the travel expenses that occurred and which the company needs to pay. Travel may probably be one of the biggest expenses that a company will have.
It is important to track where the cash has been spent and why it was spent there. A professional way should be present to do this. A properly made travel expense statement can help out here.
What is a travel expense statement?
This is a statement which reports all the costs that are connected to some business trip. It looks at different expenses such as overnight lodging, meals, etc. Employees get reimbursed for any expenses that occur.
What does a travel expense statement do?
The statement will let the employer know where the employee spends money during a business trip. Incidental travel costs can be stated in the report and companies will be able to claim any travel costs connected to tax purposes. This report can prove that an employee went on a business trip.
Travel Expense Statement File 97 KB
How to create a travel expense statement?
No formal way is present when you are making the statement but the reader must know about the expense that has been incurred when the employee went on a business trip. The following details can be considered when making the statement:
Details about the employee:
It is important to include details about the employee who took the trip. You need to include the employee’s name, their post, employee number, etc. The employer must know who the employee is when they look at these details.
Details about the trip:
There needs to be an area on the statement that states information about the trip. The details to add can be how long the trip lasted. The date that the trip began and the date that it ended should be provided as well. The destination needs to be stated clearly. Include a section on the statement that will tell what the reason for the trip was.
Signatures:
Signatures must be present on the statement to make it valid. The respective employee’s signature needs to be present.
Attachments:
The travel expense statement should include attachments of all the receipts of costs involved. When these are attached, the reader will know that the costs were present.
Simple:
The statement should be easy to fill in and even read so that it is used properly. It should be made in a format. A heading needs to be present like “Travel Expense Statement”. The top area of the statement should include the details of the employee and the trip as well. A table can be made which will include the date the expense happened, details of the expense, how much was involved, etc.
Importance of a travel expense statement
A travel expense statement is important for an employee and the company as well. The employee can professionally inform the company about the different costs that happened when they were on a business trip. The employee needs to be reimbursed for these as the trip occurred for the company. The employee can state the different expenses and provide proof that these occurred when receipts are attached.
The employer will also know of the costs involved and so can consider taxes accordingly as well. In most countries, travel is deductible if it has a proper business purpose. A business needs proof if they want this to be deducted and this statement can be used. If business travel costs are too much, the company can know about this and try and limit them.
The company will have real-time insights concerning travel expenses and can therefore make the right decisions within their budget. The statement can be presented as proof in case the employer claims that a certain expense was not incurred. The employee will even not be able to get extra cash for expenses that did not occur as proof of the costs will be present.
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