Canadian businesses frequently work with European Union countries. Yet, even though there is an impetus toward greater financial and legal integration, any executive can tell you that things are by no means simple throughout the European Union.
In a smaller geography, the United Kingdom, you can still run into many issues that challenge your ability to develop cogent and correct travel expense reports. The plain fact of the matter is that tax codes are becoming more complex, not simpler, with time.
Consider that — and compound the problem with business travel where you could pass through a dozen countries in a week — and you can see forward-thinking Canadian businesses need newer compliance solutions to ensure their travel expense reports are accurate.
Accuracy The First Time May Be Worth Its Weight In Gold
How important is accuracy when it comes to travel expense? Although travel expenses might seem to be among the more esoteric expense categories, that category can conceal some of the most complex compliance issues.
Of course, government regulators are not the only audience when it comes to keeping your travel expense reports accurate. Shareholders also have a tendency to scrutinise items relating to travel in detail. There is a perception that travel could easily be overstated or understated.
When an oversight in compliance leads to issues with the government, it can result in significant fees. Those fees, once assessed, may come with penalties in the way of substantial interest that may be calculated from the date of the original error — perhaps years ago.
At the same time, shareholders can do just as much damage to the forward motion of a business. If a shareholder concludes, rightly or wrongly, that there was a major oversight, consequences can be disastrous. One error could impact a company’s market position for months or years.
Invest In Compliance Now For “Smooth Sailing” Worldwide Later
All of these issues begin with taxes and other factors within your expense reports. Luckily, there is a new generation of cloud-based software that can help ensure travel expenses are accurately and immediately captured.
If your IT enterprise is mature enough to integrate cloud software, now’s the time to lock down your travel-related compliance. If your enterprise hasn’t introduced the cloud yet, the right “software as a service” platform could make it easy for you.