Why Use Multiple Expense Report Templates?

Why Use Multiple Expense Report Templates?

Why Use Multiple Expense Report Templates?If your business pays for any employee travel expenses, you need to have an expense report sheet to log these costs, either as a physical sheet or as an electronic sheet the employee can access with a laptop or a smartphone. It’s easy enough to just create one sheet and hand it out to all the employees who need to go on business trips, but there are a few reasons why you might want to create several expense report templates.

1. Different Employees Go On Different Trips

Depending on the size of your company and the nature of its business, you could employ a travelling sales staff that solicits customers and clients, managers who regularly meet with other companies to negotiate contracts and supply routes, and drivers who spend most of their workday on the road. All of these groups go on business-related trips, but these trips are much different experiences. If that’s the case for your company, the expense report templates should reflect the different ways they spend money.

2. Different Trips Provide Different Tax Deductions

On an average business trip, a company can deduct half the cost of food, entertainment, and lodgings according to Canadian law. However, these deductions can go up to 80 percent when the employee’s job is driving full-time. Special rules also apply to the person or group you send to an industry convention, although it depends on where the convention takes place. Maintaining different expense report templates for each situation makes it easier to keep track of how much you can deduct from each trip.

3. Creating New Templates Can Be Easy

With the right expense report software, developing different templates for every kind of trip can be even easier than putting one together in a spreadsheet program. And if you don’t know what sort of format you should use, you can easily find dozens of examples with a quick online image search. Between these two resources, any company that regularly sends employees on business trips can create as many expense report templates as they need.

While many small and medium-size businesses don’t need to create more than one simple expense report, a larger company or one with a lot of travelling employees has no excuse not to create as many templates as they need. It’s quick, it’s easy, and it makes the later accounting job much less of a headache.