Expert Advice: Smarter Ways to Track Business Travel Expenses

Tired of smoothing out crumpled receipts, dutifully filling out expense reports, and realizing that you often end up subsidizing a business trip due to missing receipts?

Check out these easy organization tips from Eric Sikola, general manager of ExpenseCloud, and Kristel Wills, manager of social media at Concur.

LINKEDIN: What are some items that business travelers often forget to document in their expense reports?

• SIKOLA: Many people forget to expense the mileage when driving from home (or office) to the airport. Also, when you get up in the morning and head out to a meeting. On the way, you grab a coffee. Many people think that adding a $4 expense is just not worth it. But if you do this for an entire week, it adds up. It all depends on the company's travel expense policy, but usually any personal meal during a trip is covered... Taking a picture of a receipt has become the norm. Plus the IRS allows digital images, assuming a few policies are met. No more paper or taping receipts!
• WILLS: A lot of people overlook cash expenditures, such as taxis, parking, coffee, and all of the little things you either forget to get a receipt for at the time (or you misplace before filing your expense report). With Concur, people can get a receipt using their smartphone right at the point of purchase. Another way to make sure these expenses aren’t overlooked is for business travelers to use their corporate credit card for all of their purchases. That way, transactions automatically feed right into an expense report.

LINKEDIN: What can you typically not expense?

• SIKOLA: Drinks with your friends, sporting tickets that are not business-related, and magazines (note: many of these scenarios vary by company based on their travel policy). Another one is airline upgrades. Some companies allow it and pay for it; some don't. An example is if you fly more than 7 hours, you can upgrade to business class. Because the airlines are getting creative on making more money for premium seats, now getting an aisle seat upgrade can also be considered an expensable item.
• WILLS: Generally speaking, expense policies vary by company. In fact, they even vary within companies based on department or job title. Some of our clients’ policies are strict and only cover very specific items on a business trip; others have more lenient practices.

LINKEDIN: Can you be reimbursed for tips and gratuities that are paid in cash?

• SIKOLA: It's the honor system. It starts with company culture — if someone lies on his or her expense reports, they need to know it will get them fired. Many companies have a policy that any item under a certain dollar amount does not need a receipt (typically $15-$25).
• WILLS: If your company sets $25 as its cash purchase threshold, then any purchase you make that doesn’t exceed $25 won’t require a receipt or other form of proof. It’s important to learn your company’s policy to make sure you comply.

LINKEDIN: Do you have any stats that show how much money a business traveler ends up paying out of pocket due to lost receipts or incomplete expense reports?

• SIKOLA: We (ExpenseCloud) don't have stats on this since we don't know what they are not submitting. Personally, I can say on average I lose $20-$30 on every trip. These might be from things like mileage I don't expense (to/from airport and home), tips, coffee, little meals, etc.

LINKEDIN POLL: How do you handle tips and gratuities during your business trips?

Photo credit: Dean Shareski/Flickr