The costs of costs are an essential subject in the daily management of a company. They affect both financial management and the relationship with employees, whether managers or employees. However, these costs, if they are not well supervised, can become a source of confusion and conflicts. Errors must therefore be avoided and guarantee healthy and transparent management. But what about the rules that apply on one side as on the other? Decryption of good practices to follow.
The role of costs of costs in business management
The costs of costs are documents allowing an employee or an manager to be reimbursed for the professional expenses incurred within the framework of their functions. This may include travel, catering, accommodation, or even purchases necessary for the smooth running of the missions.
For the company, the management of costs must be rigorous in order to avoid abuses or errors. As manager, it is important to set up a clear framework, both for management and for reimbursement. This not only complies with the legislation in force, but also to maintain a good relationship with your employees, guaranteeing transparent and fair rules.
The rules to follow for the reimbursement of the costs of employee on the employee
On the employee side, the costs of costs must be justified and in accordance with specific criteria to be reimbursed. Here are the main rules to follow:
Professional expenses only
The costs of costs must exclusively relate to professional expenses. For example, a meal taken during a business trip or the purchase of equipment necessary to achieve a mission are reimbursable costs. On the other hand, personal expenses, such as a lunch with friends or the purchase of items not linked to the mission, cannot be reimbursed.
Compulsory supporting documents
The employee must always provide supporting documents detailing the nature of the expense: invoices, cash receipts, etc. These documents are essential to prove that the expense has been carried out in the context of professional activity. Without valid proof, the company can refuse the reimbursement of the expense.
Respect for ceilings and internal rules
Some companies impose expenditure ceilings for specific costs of costs, such as meals or accommodation. These ceilings may vary depending on the sector of activity or the internal policies of the company. Employees must therefore ensure that they respect these limits, under penalty of not being reimbursed. For example, it may be specified that the amount of a meal outside the city must not exceed a certain sum.
Procedure for submission of costs
Employees must generally comply with a specific time to subject their costs. This period may vary from one business to another, but it is often a few weeks after spending. In addition, the costs note must be correctly filled, with all the information required to facilitate validation by the accounting service.
The obligations of leaders concerning the costs of costs
Business leaders, although they are often responsible for the management of finance and expenditure of the company, are also subject to specific rules when it comes to their own costs. However, their conditions may differ slightly from those of employees according to the structure of the company (for example, a SARL, a SAS, etc.).
Compliance with professional expenses
Like employees, managers must also ensure that the costs are exclusively professional. However, in the case of managers, the question of the nature of expenses can sometimes be more complex, especially when they have to move for events or business meetings in more informal contexts.
Internal control: avoid abuse
Managers must be particularly vigilant to the expenses incurred to avoid any risk of confusion with personal expenses. As responsible for financial management, the manager must set up a strict policy of control of costs. For example, it may be necessary to apply an internal procedure where the costs are validated by an official other than the manager himself (especially in large companies).
Refund and taxation
Managers are subject to the same tax rules as employees concerning reimbursements of professional costs. On the other hand, the methods of reimbursement of managers can be slightly different, in particular with regard to social status or social contributions. It is crucial that these expenses are well justified and processed transparently so as not to lead to tax recovery.
Disguised personal expenses
An additional point of vigilance for managers is the risk of abuse, such as invoicing personal expenses disguised as professional expenses (for example, the purchase of personal goods as “representation costs”). Tax authorities can be particularly attentive to these practices and impose fines if they believe that spending is unjustified.
The role of leaders in the implementation of internal rules
To avoid any misunderstanding or conflict, it is essential that managers define and clearly communicate the internal rules relating to costs. These rules must be accessible to all employees and updates regularly. A good frame includes:
- A clear policy on reimbursable expenses : The types of costs accepted must be well defined (meals, transport, accommodation, etc.), as well as the reimbursement conditions (ceilings, supporting documents).
- Tools for submission of costs : The use of digital tool management tools can simplify the process, allowing rapid submission, electronic validation and real -time expenditure monitoring.
- Team training : It is essential to train employees in the professional expense management policy so that they are well informed of the rules and expectations of the company.
The risks involved in the event of non-compliance with the rules
The consequences of ill -treatment of the costs of costs can be serious. On the one hand, the employee can see his refused reimbursement if he does not provide the necessary supporting documents or exceeds the ceilings. On the other hand, a manager can expose himself to tax sanctions if costs are deemed unjustified or excessive.
In the event of control of the tax administration, it is therefore recommended to have a rigorous and transparent policy to avoid tax adjustments or penalties.
