Keeping tabs on your expenses is one of the most important things you can do to ensure that you’re investing money in the right places. While monitoring how much you spend on certain things is probably not possible for anyone who lives and works from home, it’s still a good idea to know how much your company spends on travel and accommodations. By keeping an eye on these expenses, you’ll be able to ensure that you’re not being overcharged or spending too much. Even if you only have to track these expenses when booking a new job or contracting with a new supplier, it’s still a good idea to know how much your company is spending. Keep in mind… These tips are just the very basics. You should always check with your accountant and other professionals to see if having a formalized expense policy makes sense for your company. Depending on the nature of your business, there may be other factors that need to be taken into account before setting up a formal travel and expense (t&e) policy for your company.
What is t&e policy?
t&e policies are a key part of any business’s bookkeeping. The goal of the policy is to establish what is fair and reasonable for the company and its employees. While some companies require their employees to keep a formal t&e policy, others have a more informal policy that employees can use on a case-by-case basis. Regardless of the formality of your company’s policy, the idea is the same: You’ll know how much your company is spending on travel and accommodations and you’ll be able to take steps to ensure that it’s being spent responsibly.
Set up a t&e policy before you hit the road
One of the best things about working from home is that you don’t have to go to the doctor’s office or build a car from scratch. While you don’t have to drive a fancy car to make money as a home-based business owner, it’s still a good idea to know how much your company is spending on travel and accommodations. By knowing how much your company is spending on travel and accommodations, you can take more control of your expenses so that you’re less likely to overspend. You don’t have to be a doctor or a carpenter to figure this one out. While there are many expenses that are unique to working from home, the majority of them can be tracked using software like Expenses and Travel Tracker. These tools make it easy to keep tabs on your company’s t&e. You can even create a custom expense tracking system if your company maintains a detailed accounting system.
Track the cost of travel first
If you have an expense tracking system in place, it’s a good idea to track the cost of travel first. This way, you’ll know how much you’re spending on your own trips as well as your team’s travel and accommodations. By keeping track of your own t&e, you’ll be able to see where you’re overspending and take steps to correct the situation. For example, if you know that your company’s travel budget is $2,000 for the year, you can see if there is anything you can do to lower your costs. By using an online travel agent or researching local hotels and resorts, you can save money on your company’s travel expenses. Similarly, if your company owns a vacation rental property, you can see if there is a way to save on your own expenses.
Don’t overpay for accommodations
As an Entrepreneur on the Go, you’ve probably encountered people who are looking to overcharge for hotels, flight tickets, and rental car prices. There are a few things to keep in mind when it comes to avoiding overpayment. First, if you’re the only one who uses a hotel or rental car, you might not notice a difference. However, if you have a small company, overpayment could put a significant dent in your company’s kitty. Depending on your company’s size, one overpayment could be enough to seriously impact your company’s cash flow. Another thing to keep in mind is that some expenses are more expensive overseas than in the United States. While it may cost less to fly from Boston to San Francisco than from New York to San Francisco, the latter is still less expensive than staying in San Francisco.
It’s fine to have multiple categories in your expense tracker
Creating a separate category for each expense isn’t a good idea. The expense tracker you use should have the ability to automatically add categories so that you don’t have to manually add them one by one. Instead, try to keep your expenses organized in one place so that you can quickly see at a glance how much your company is spending on each category. You can also try to use an app like Expenses or Travel Tracker to keep tabs on your company’s t&e.
Be transparent with your expenses
One easy way to avoid being unclear with your expenses is to list them all out on a piece of paper so that you can easily see at a glance what you’re spending money on. This helps you avoid spending more money than you intended to. When you know how much your company is spending on travel and accommodations, you’ll also be able to see at a glance where your company’s money is going. Ideally, you’d have an accountant or other professional keep an eye on your company’s expenses so that you can easily see where your money is being spent. However, since you’re on a budget, you could also keep track of your company’s expenses on a spreadsheet or use a data tracking app. Be as transparent as possible with your expenses and your company’s finances will have a much better chance of staying in check.
Wrapping Up
t&e policies are a great way to ensure that your company is spending money wisely. They not only provide you with a written list of what your company is spending money on, but it also gives you a clear understanding of how each dollar is being spent. While setting up a formal t&e policy is a good idea, you can also make use of a few extra tips to ensure that your company is spending money responsibly. First, you can track the cost of travel and accommodations using a t&e tracker. By keeping tabs on these expenses, you’ll be able to ensure that you’re not being overcharged or spending too much.