When it comes to narrowing down expenses and determining where certain money goes, one expense that some individual come across is a business travel expense. Here is a look at what is considered a business travel expense and how it is covered.
In short, a business travel expense is an amount that is spent for anything that is related to work. This can be in many forms. If you are traveling for business and have to drive a certain ways you can mark the gasoline used to travel as a business expense. If you have to rent a car, this can be considered a business travel expense as well. Lodging is another business travel expense. If you must go somewhere overnight and your business or company you work for gives you this type of allowance, then you would consider the price of the hotel room as a business travel expense. Even food is considered a travel expense so long as you are eating during your business trip or during business hours.
For those who are wanting to claim a business travel expense they will need to be sure to bring along receipts for each of their purchases. This includes gas purchases, food purchases and hotel room receipts. These will all be needed in order to receive compensation from employers as well as for tax purposes.
How business travel expenses are paid for varies from each individual employer. Some employers will pay for their employees travel expenses up front while others will ask their employees to make the purchase and them reimburse them later. Others may give their employees actual business credit cards and ask for the receipts.