Over two-fifths (43%) of those asked reported losing receipts for their expenses led to expenses being reported incorrectly, and one in five (22%)  said that the process was too difficult.

If business travel expenses are not reported correctly, it can lead to significant financial and compliance issues for the employee and the organization. Misreported expenses may result in inaccurate reimbursements, causing economic losses or discrepancies in company budgets.

Creating an effective travel policy can help to minimize the number of incorrectly reported business expenses.

Tips for creating an effective travel policy:

• Define clear guidelines: Specify what constitutes a business expense, preferred vendors, and any cost limitations. For example, if a specific flight class or accommodation type is required, this should be stated clearly.
• Simplify the approval process: Use technology to streamline approvals. Implement digital approval workflows that can be tracked easily.
• Encourage real-time reporting: Utilize expense management tools that allow for real-time reporting. Tools that integrate with travel booking platforms can significantly reduce the time and effort involved in the process.
• Provide training and resources: Ensure that all employees know the travel policy and how to report expenses correctly. This can be done through training sessions, webinars, or easily accessible guides.
• The study also found that nearly 2 in 5 (40%) of small businesses do not have a travel policy
• 16% of companies still use Excel or similar software to capture business costs during business travel.