The various expenses for the accomplishment of a mission in favor of the company are part of the expense reports. It should be noted that only expenses for the benefit of the company are taken into account in these expense reports.
Expense report reimbursement system
In the management of expense reports, business expenses can be reimbursed in three different ways. One of them is the system of reimbursement of actual expenses. This is a system that consists of reimbursing the exact amount of the sums incurred, upon presentation of the purchase invoice (a restaurant bill, a transport, parking or toll ticket, etc.). The second system is the lump-sum system, which is a reimbursement according to a fixed amount, the scale of which is set up by the URSSAF (the Organizations for the payment of social security and family benefit contributions). This reimbursement method, though, is only available to employees. Managers cannot benefit from it. The last reimbursement system is the tax deduction for professional expenses. This method is applied to the remuneration of the employee concerned by the mission, within the framework of their personal income tax. The tax deduction amounts to approximately 10% and is capped (approximately 7,000 euros per year).
How to establish an expense report?
For a good management of expense reports, there are rules to follow in their establishment. These specificities are especially to be noted for catering expenses, accommodation tickets and travel allowances. For catering expenses, the reason for the invitation and the name of the beneficiaries must be mentioned in the invoice. Travel expenses are applicable if the executive or the employee uses his or her own car for the purpose of the mission. This does not take into account a rental even if the car was rented under the name of an employee or the company manager. Any other expense incurred in the interest of an institution, which can be returned and supported by evidence, may be adopted in an expense report.
How to keep an expense report?
A simple accounting system in Excel is sufficient to manage your expense reports. You just have to make sure to indicate all the information to be in conformity with the internal regulations without forgetting to attach all the receipts. No time limit is really provided by law for the reimbursement. But generally, expense reports are established at the end of each month. If necessary, this is done during the payroll or the transfer of wages.
