SAP Concur have been in the business of expense management for over 25 years. So, it’s easy to forget that there are still employees out there who have never submitted an expense claim.
If expense management is a new concept for your business, here’s some basics to get your started…
What is a business expense?
A business expense is a cost incurred as part of doing your day job. If you were wanting to know, ‘what is a corporate expense?’, then don’t worry, it’s the same thing. Basically, anytime you spend money on behalf of your company or spend money that you expect to be reimbursed for, you’re creating a business expense.
What are some common business expenses?
Business expenses are often incurred through travel. Perhaps you’re visiting a client, working from a different office location or travelling overseas for an event. Whatever the scenario, if you’ve ever travelled for work then you’ve probably incurred some of the expense types outlined below:
- Travel fees e.g. train tickets, airfares, taxi fares
- Mileage or fuel costs
- Hotel or accommodation fees
- Personal food and beverage costs
- Entertainment costs e.g. client lunch
What are the different types of business expenses?
There’s an easy way to split out the different types of business expenses. Consider what would require an invoice and what would go into an expense claim. Generally, low cost or “on the fly” expenses – like travel fees or a client lunch – would usually go into an expense claim. Whereas more complex, higher cost or ongoing expenses – like office furniture or a training subscription – would usually go into an invoice.
Before we get into invoicing, consider your current situation. If you’re thinking ‘we have a lot of business expenses but no process to manage them’, it might be time to do some research into expense management systems.