Paying for Travel Unit 7a. Click to return to Sum up page Types of Expenses incurred Cost of package...

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


Methods of Paying for Travel

Cash Cheque

Business Credit card

Business Debit card

AccountTravellers’

Cheque


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


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.


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


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


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 .


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.


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


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


Travel Expense Claim Form cont

• Employee only claims for legitimate expenses

• Employee includes receipts

• Finance dept check all claims

• Check receipts and calculations


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


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

Paying for Travel Unit 7a. Click to return to Sum up page Types of Expenses incurred Cost of package...

Documents

Transcript of Paying for Travel Unit 7a. Click to return to Sum up page Types of Expenses incurred Cost of package...