Is Creating a Travel and Expense Policy Right for Your Business?

Without a clear travel policy in place for your employees to follow, your business's travel expenses can easily exceed your budget. Although it is important to have one, many businesses do not. If your business does not have a travel and expense policy in place yet, here is what you need to know.  

Why Do You Need a Travel and Expense Policy?

The most obvious reason for creating and enforcing a travel and expense policy is that it can save your company money. The right plan places limitations on what your employees can spend on everything from transportation to hotel stays. Instead of taking advantage of a lax policy, your employees will know that they have to make their travel arrangements according to the restrictions set in place.  

A policy can also help increase productivity in the workplace. The policy will require employees to follow a strict set of rules and complete the appropriate documentation to travel. Instead of you and your accountant having to sort through receipts to create expense reports, your employees will have to do it. 

The policy also helps to ensure that your business is following any regulations and laws that are in place at the state and federal levels. This helps to reduce the chances of you facing consequences for failing to track your employees' travel arrangements and spending.  

What Should Be in Your Policy?

Your travel and expense policy does not have to be overly complicated. Before starting it, you should talk to your employees to get recommendations on what the policy should and should not include. You have the right to discard the recommendations, but in talking to your employees, you have a chance to discover what does and does not work.  

You also should consider creating agreements with travel partners like A&A Limousine & Bus Services so that you can include those contacts with the presentation of your policy. For instance, if your business contracts with a specific corporate transportation provider, you can ensure that your employees are aware that they are to use that service when they have to travel.  

Once you have your policy in place, it is important that you take action to enforce it. You need to make sure your employees feel supported, but at the same time, they need to know that the policy needs to be followed. It is important to note that getting occasional feedback from the employees can help to perfect your policy.