The movements of employees for work reasons are the order of the day in companies,which means a series of travel expenses that must be controlled and managed correctly to avoid problems in the economy that could jeopardize the viability of the company.
That said, controlling travel expense management isa complicated task, as different events, meetings, meals, customer visits, travel, etc., complete a long list of expenses that are increasingly long than if not controlled, will generate significant costs for the company.
In these cases having an effective strategy for the management of travel expenses is indispensable, carrying outa structured analysis and integrating any expense related to travel that allows us to know at all times the expenses of our employees.
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How to control travel expenses in your company?
If you want to keep a good control of travel expenses in your company you should pay special attention to the available budget and what type of expenses each worker will have covered:
> Budget available for travel expenses
The first and most important thing is to be clear about the budget available for travel expenses,and for this you will need to make a budget planning taking into account the possibilities of the company, as well as the future needs that will have to be addressed.
> What travel expenses will workers have covered?
Defined budget, the following is to define what travel expenses workers willhave covered, as well as to set a limit budget for each of them, and to take action measures should they exceed that limit.
You will need to review all the components of a trip (transportation, accommodation, diets,… etc.).
Tips for managing travel expenses in the most efficient way, and saving costs
Once we have prepared the budget available for travel and travel expenses and know what expenses workers will have covered, now we will see a series of tips that will help to manage travel expenses in the most efficient way and save cost.
> Control spending policy
You will need to define and control the company’s expense policy,differentiating between the expenses borne by the company and those that will not be refundable.
- Expense per mileage : if abusiness car is not available, a price per mileage will have to be agreed.
- Regulations:Regulations vary by company, but it is important to set a price per diet or transport, as this will make it easier for you to make an expense forecast and avoid scares.
- Ticket processing : itis important to manage the processing and control of tickets generated during a trip or travel.
- International travel: you must establish a specific policy for international travel, taking into account currency exchange as well as the contracting of travel insurance.
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> Company cars
Having company cars will help control travel expenses, beingeasier to keep track of each worker’s mileage.
Although at first you will have to make a significant investment in the vehicles, in the long run it will be profitable and also improve your image in front of the public. Here business renting is one of the best options available for company cars.
> Travel agency
It is also highly recommended collaborate directly with a travel agency that processs our travels, as this will make it much easier to control expenses and enjoy significant economic savings, as it is very likely that the travel agency will apply discounts or promotions when working with them.
Also, collaborating with a travel agency will save time,since we should not waste time preparing a trip, minimizing the working hours of the team itself and having expert advice.
> Bet on digitization
Travel and travel in companies generates a large number of invoices, receipts and documents that must be stored correctly to manage them correctly.
To avoid problems it would be ideal to digitize and automate this process,using some management tool that allows you to upload expenses directly to a platform. This will avoid possible losses and will favor the management of travel expenses, being able to have them better controlled and access them comfortably whenever we need it.
In short, a company’s travel expenses can generate significant end-of-year costs that must be known and managed in the right way, both to avoid unforeseen events and to keep more effective control.