Date post: | 12-Jan-2016 |
Category: |
Documents |
Upload: | marian-norton |
View: | 213 times |
Download: | 1 times |
Payin
g fo
r Travel
Unit 7a
Click to return to Sum up page
Types of Expenses incurred
Cost of package to travel
agent
Travel, eg train ticket
Accommodation, eg hotel
Food, eg to
restaurant
Click to return to Sum up page
Methods of Paying for Travel
Cash Cheque
Business Credit card
Business Debit card
AccountTravellers’
Cheque
Click to return to Sum up page
Cash
Cash must be exchanged into foreign currency for use in other countries eg Euro for most of Europe
Used for paying for small expenses or where other methods are not acceptable.
For example bus or taxi fares, car parking
Click to return to Sum up page
Cheques
Cheques are used for larger expenses but not used commonly now.
Often used by businesses to pay bills received from travel agents or hotels.
Click to return to Sum up page
Business Credit CardCredit cards allow people to “buy now and
pay later”. Used for expensive purchases like hotel bills, car hire and meals.
Travellers needn’t carry large amounts of cash and employees are not out of pocket.
Credit cards are accepted worldwide.
The organisation can check the itemised statement and control expenditure
Click to return to Sum up page
Business Debit CardsDebit cards allow holders to pay for large
purchases directly from their bank accounts. They can also be used to withdraw cash at ATMs.
Travellers needn’t carry large amounts of cash.
They are not acceptable worldwide but can be used in most of Europe.
The organisation can check the itemised statement and control expenditure
Click to return to Sum up page
Travellers’ Cheques
Travellers’ cheques are bought before travelling – they can be exchanged for cash or in some countries to pay for goods and services.
If stolen they will be replaced .
Click to return to Sum up page
Account
When an organisation uses a Travel Agent, the Travel Agent usually sends the organisation an account/invoice/bill for all travel costs. The account will be checked carefully before being paid.
Click to return to Sum up page
Deciding Which MethodExpense Method
UsedJustification
Pay for a meal in restaurant abroad
Credit card Credit card can be used worldwide. Saves carrying cash
Paying for hotel bill in Edinburgh
Debit card Widely accepted in this country. Payment straight from bank
Taxi fare Cash in currency of country
Taxi drivers unlikely to accept other forms of payment
Click to return to Sum up page
Travel Expense Claim Forms
Smaller organisations do not issue credit cards – employees use their own and then reclaim expenditure from the company. They do this using:
• Travel Expense Claim Form
• Receipts of all expenses
Click to return to Sum up page
Travel Expense Claim Form cont
• Employee only claims for legitimate expenses
• Employee includes receipts
• Finance dept check all claims
• Check receipts and calculations
Click to return to Sum up page
Advantages of Claim Form• Employees know what can
be claimed for• Easier for Finance
Department to check if a standard form is used by all staff
• Easier for organisation to monitor and analyse expenditure
• Can be placed on intranet for all staff to access
Click to return to Sum up page
To Sum Up …• Types of Expen
ses • Methods of pay
ing for travel• Cash• Cheque• Business Credit
Card• Business Debit
Card
• Travellers’ Cheques
• Account• Deciding which
method to use• Travel Expense
Claim Form• Advantages of
using a Claim Form