Guidance and Knowledge for Value Investors
Travel expenses are generally divided into four groups. The actual cost of transportation, lodging, meals and incidental expenses. There are several different methods used to handle travel expenses. The most common method is the Per Diem rate method.
There is much more to transportation with bookkeeping than accounting for vehicle operations, addressing mileage reimbursements or tracking auto costs related to owners and family members. Bookkeepers must track the following too:
When an employee travels for the company the question often arises as to how to best take care of the associated costs. By far the easiest and most efficient tool is using one of the accepted per diem methods advocated by the Internal Revenue Service.