How to manage the professional expenses of the employees of a company

The management of employees’ professional expenses is not easy to set up in a company, especially for SMEs. However, having a precise look at these expenses is not only necessary for the company, for employee satisfaction, but it is also a legal obligation.

What do professional expenses mean for employees?

In the context of his professional activity, an employee may be required to spend money. The company has the obligation to reimburse the costs thus incurred. These concern 5 categories of expenditure:

The meal expenses when the employee is not able to take meals on his regular place of work;

The transportation costs within a displacement of the employee. These may be kilometric allowances if he uses his personal vehicle, the purchase of train tickets, air tickets, etc. Motorway toll tickets or in connection with the rental of a car. Vehicle;

The accommodation costs. When the employee travels several days to more than 50 kilometers from his home or when to make more 1:30 transit to its mission;

The telecommuting costs if the employee works at home, the company must repay a portion of its expenditures phone, internet, rent, etc.

The phone charges or internet caused during a business trip.

To be reimbursed, these professional expenses must be justified and proportionate according to conditions governed by the law in order to guarantee the interests of both employees and the company. They must be the subject, for each of them, of an expense report. The latter must mention the date and nature of the expense, the professional mission to which it relates and the amount advanced by the employee.

Note that the company can absolutely set an expenditure limit or impose economic modes of transportation and accommodation.

The expense reports of each employee are then forwarded to the employer who is responsible for reimbursing these expenses within a set time. And this is where the work becomes tedious to check each expense report and proceed with their refund.

What solutions to better manage the professional expenses of employees?

A company has several solutions to manage the professional expenses of its employees. Some are rather tedious, others, in connection with new technologies, facilitate this management.

Advance Fees

An employer can decide to advance the professional expenses of a collaborator to avoid the latter to take care of them personally temporarily. This solution is often used when an employee is moved very often in the course of his work. It requires estimating as precisely as possible the costs that may be incurred if the employer opts for a permanent advance of expenses. It can also be punctual. But in both cases, the employee must send expense reports that must then be managed.

Prepaid bank cards

The management of business expenses can be greatly facilitated, especially for small businesses. Through membership of an online bank for SMEs that allows benefiting from a bank card set for a predetermined amount of expenditure and connected to an application dedicated mobile. The employee uses it to pay his expenses. Which are transmitted in real time to the bank account of the company? He can also immediately send, via his mobile, the corresponding expense reports to the accounting software of his company. A simple and innovative solution for easier management of employees’ professional expenses.

Leave a Reply

Your email address will not be published. Required fields are marked *