What is an expense category?

Key principles of an expense category:

• Purpose: To categorise expenses into distinct groups based on their nature or purpose.
• Classification: Expenses are categorised based on common types incurred during travel, such as transportation, lodging, meals, and miscellaneous.
• Consistency: Standardised categories ensure uniformity in expense reporting across the organisation.
• Policy Compliance: Expense categories align with company travel policies and guidelines
• Reporting and Analysis: Categorising expenses allows for easier tracking, reporting, and analysis of spending patterns, budget adherence, and cost allocation.
• Reimbursement: Expense categories determine which expenses are eligible for reimbursement and at what rates.

Examples of expense categories

An employee submits an expense report for a business trip, categorising expenses into various categories such as airfare (transportation), hotel accommodation (lodging), meals (meals and entertainment), and parking fees (miscellaneous). See additional expense category examples here.

The benefits of an expense category

• Stay organised – Keep all expenses in one clear system that’s easy to track and manage.
• Stick to the rules – Make sure every spend follows company policies, automatically.
• See the bigger picture – Spot trends and track budgets with clear insights into spending.
• Pay back the right way – Know exactly what can be reimbursed, and at what rate.

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