Importance of Travel and Subsistence Expenses

Have you ever been on a business trip? If you have, then you have come across the things called travel and subsistence expenses. As you are traveling some other place from work, all of the expenses you spend, that are usually fully or partially funded by the company itself, counts as travel and subsistence expenses. In this article we are going to list some of the terms you need to know to understand what travel and subsistence expenses mean.

• Normal place of work:

You will find this term in every receipt connected to business trips. Normal place of work is exactly what the name of it tells you. It is the place where the one works every day. This place can vary from company to company. Sometimes it will be the place where the head of the company is, but more often, in case of a bigger company, it is one of the bases of the company. normal place of work should be equipped with the equipment you need to perform your duties.

• Business travel or trip:

Chances are, you can’t tell the difference between the normal trip and business travel. Business travel is specially associated with your duties in your work. Business travel does not necessarily mean, that you will be traveling abroad, but usually it will be out of the city, in which you usually work. When you are on a business travel, you will get the information prior to it. The information will include everything you need to know about the trip: destination, distance from your normal work place from, finances for the spending. Notice that travel and subsistence expenses never include personal spending not associated with duties of work. 

 

• Reimbursement:

As we have already mentioned, business travels should be fully or partially funded. Reimbursement rates are constantly changing and different for different companies. We are going to count down some things that are reimbursed in travel and subsistence expenses. Transportation is the first thing that is reimbursed in the business travel. Transportation can be different depending on the distance, from trains to planes. Sometimes, you might be given some amount of money to spend only on transportation, but it is your choice, how to spend it.

• Other important things:

Usually, there will be someone who will be supervising the travel and ensuring that everything goes as planned. They will also provide guidelines, instructions and any advice you might need. Sometimes, you might have some free time, to spend as you wish, or you can stay longer on a travel, but that will not count as a business travel anymore and will not be funded or reimbursed.   

Now that you know enough about travel and subsistence expenses. So, next time you go on a business travel, you will not be confused anymore. If you still are, you should not hold back to ask questions to your supervisor or anybody else relatable. 

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