Professional Expenses In A Business

Professional Expenses In A Business

As part of the performance of his daily duties, an employee incurs professional expenses. The role of the employer is to reimburse all these various costs in due time so that employees can work in the best conditions.

What Are The Different Professional Expenses Or Fees?

By definition, professional expenses correspond to the expenses inherent in the employment of an employee that he bears in the performance of his duties. These expenses are divided into several categories. Among the most important are the cost of meals. 

The employer must compensate his employee for meals taken in restaurants or outside the company’s premises and when he has to eat at the workplace because of time constraints or the organization in question. internal. Reimbursement of catering costs also applies during business trips that prevent the employee from taking his meals at his usual catering establishments or at home.

Travel expenses also represent a significant portion of professional expenses. These are expenses incurred by the employee in the context of his mobility. There are different types of travel expenses among which are transportation expenses. If the employee’s vehicle is used for professional purposes, he can claim a mileage allowance on presentation of various supporting documents such as fuel costs, toll costs, plane ticket or train ticket. 

These transport costs for professional practice are to be differentiated from home-work transport allowances. Here, it may be a question of subscriptions to public transport or bicycle rental services, for example.

Professional mobility must also be supported by the employer. When the employee has to move for work, he must receive compensation for transport and hotel costs, temporary accommodation costs, travel costs related to prospecting for a new house, furniture storage costs, the expenses generated by the rental of the moving truck or the services of a moving company. The company also reimburses the installation costs such as the fees of the notary or the agency, the installation of the electrical installation, etc.

Finally, employees working from home in telework must also benefit from financial support as part of the performance of their duties. Among the expenses reimbursed are the purchase of a computer, the payment of the internet connection, the acquisition of a work chair, the payment of part of the rent as well as electricity.

How To Reimburse Professional Expenses?

Reimbursement of professional expenses is made in two ways: flat rate or actual. When the employee’s expenses are recurring, reimbursements are generally fixed. This means that every month, the employee receives a bonus intended to compensate for the money he has spent in the performance of his duties. 

This method of reimbursement is especially favored by the so-called “land” sectors of activity. This is the case of salespeople or itinerant people who are always on the road. To compensate for meals and travel, the company directly allocates them a monthly budget. In this way, they do not need to have to justify the prices of their meal each time by presenting catering invoices. Normally,

In addition, the employer can also decide to reimburse professional expenses on their real values. For this, it will be necessary to justify each expense with invoices. The presentation of these supporting documents and the possibility for the employer to prove the need for these professional expenses make it possible to obtain an exemption from contributions. It should be noted that there are also expenses which cannot be the subject of flat-rate allowances such as teleworking expenses, moving expenses, expenses for NICT tools or even expenses for missions abroad.

Please note that not all costs are borne by the employer either. This is the case, for example, of the fuel used by the employee to drive his car from home to his office. Bowl fees are also rarely reimbursed. They correspond to the meals that the employee prepares at home and brings back to his place of work.

Method Of Managing Professional Expenses

Professional expenses require a more or less substantial budget for a company, hence the importance of managing them optimally. An effective technique is to establish a validation policy for professional fees. Thus, employees do not commit to expenses without having received the approval of the employer.

It is also recommended to create an expense report directory and correctly categorize business expenses by employee. Thanks to this approach, it is possible to carry out a relevant analysis and adopt the appropriate actions that are required.

To reduce reimbursement processing times and prevent employees from waiting a long time before receiving their compensation, one tip is also to use online expense report management tools.

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