T&E Reports: What to Include and How to Manage Them

T&E Reports: What to Include and How to Manage Them

What is T&E?

T&E is an acronym that stands for “travel & expense” or “travel & entertainment.” T&E spend policy guides employees on how they can spend money on work-related purchases or purchases made while on business travel. Oftentimes a company’s T&E policy and corporate travel policy are packaged together because they are interrelated.

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What T&E expense reports typically include

Corporate travel policies and T&E policies can vary from company to company. Typically, they cover categories such as:

  • Travel: Including spending limits and preferences for flights, trains, buses, etc. For example, you may allow your travelers to fly in premium economy on flights shorter than five hours, and in business class on flights longer than five hours.
  • Accommodations: Including spending limits for each country or city during various times of year.
  • Food allowance: The GSA provides a guide on per diem rates to see what a reasonable allowance is for meals in cities around the country.
  • Corporate credit card policies: Guidelines for who gets access to the company card, when it can be used, etc.
  • Reimbursement policies: How employees can get reimbursed for out-of-pocket spending.
  • Telephone usage expenses: What type of telecommunication costs the company covers
  • Entertainment expenses: Employee expenses incurred while taking a business client out to a meal, sporting event, or other form of entertainment.
  • Mileage counting and reimbursement policies: When employees drive personal cars for work, this policy explains how they should count how much they drove and what they have to show to get a reimbursement for this expense.
  • Parking - If someone drives their car to a business meeting or conference, these policies explain where the employee can park, such as whether they should look for free street parking or the company would pay for a valet.
  • Resources for safety while traveling - What to do in case of a missing credit card or how to handle unexpected travel advisories.

How to develop a corporate T&E policy

Having a good travel and expense policy is important for several reasons. First, it keeps your company on-budget. When travelers know what they can and cannot spend company money on, and what they will and will not be reimbursed for, they can make smart purchasing decisions.

Second, a clear T&E policy speeds up the employee travel reimbursement process. When employees understand what they can and cannot get expense reimbursements for, they can file expense reports quickly, which is beneficial for both the accounting team and the employees requesting reimbursements.

The more thorough your T&E policy, the more easily it will be adopted.

Before you begin to develop a corporate T-and-E policy, it’s important to explore several questions that will help make your policy a success.

First, who will use the T&E policy? Will it be junior associates who are jetting away every week, or vice presidents? Will you need separate policies for different teams and ranks? If not, how can you write the policy so that it’s applicable to and understood by everyone at the company?

Second, what’s the overall budget for T&E? How is the budget divided? By department, by individual, etc.?

After you’ve created the policy, how will you share it with the company? How will you make it accessible to travelers on the go? Will there be a mobile version of the policy?

Once you’ve discussed these considerations with key stakeholders, it’s time to develop your company’s T&E policy. Follow these steps:

  1. Look at examples of other T&E policies. This exercise will give you a sense of how detailed yours should be, will give you an idea of the format you should use, and will help you come up with comparable rates. This T&E policy from GuarantCo is a comprehensive example.
  2. Use a tool that will help guide you as you write your T&E policy.
  3. Test it out. After you’ve created your T&E policy, share it with an internal focus group consisting of employees from different departments. Ask them if anything is unclear.
  4. Finalize with feedback. After you’ve received feedback, incorporate it into the policy.

Remember that your company’s T&E policy is a living document and should change with the times and with your company’s needs. Update it when appropriate.

Tools and resources for T&E management

After you’ve released your T&E policy into the wild, consider equipping your team with T&E management tools to maximize efficiency.

These are the top tools and resources available for T&E management:

Creating and managing a T&E policy shouldn’t cause anxiety. By looking at examples of other policies, knowing which elements to include, and breaking the process down into steps, you’ll be on your way to creating a successful T&E policy in no time.

About the Author: Rebecca Morrison
As VP of Finance and Operations, Rebecca Morrison oversees financial reporting and analysis, forecasting, and budget management for Lola.com. Previously, she was VP of Global Finance and Operations at Midaxo, and has held various roles in Finance and Operations at HubSpot and EMC.