Travel expense software

Definition

With the right travel expense software, companies can digitise their travel expense accounting and thereby account for travel more effectively and quickly. This is made possible by setting up and automating accounting processes through software.

1. This is why companies benefit from travel expense software

In traditional paper-based accounting, employees spend many hours each year sifting through, filing and processing expense reports. In addition, many business travellers curse because they have to save receipts and stick them on paper sheets, print out credit card statements and fill in Excel spreadsheets if they want to be reimbursed. Digital accounting makes life easier for both business travellers and companies.

1.1 Benefits for employees

For professionals, the effort required for their expense report is noticeably reduced if receipts can be scanned during the trip with the help of a mobile app and receipts can be added to the expense report with just a few clicks. If a GoBD-compliant app is used and the receipt scan meets the legal requirements, the physical document does not even have to be kept. For companies, travel expense apps offer tangible economic advantages. With the right software, accounting clerks need only a fraction of the time to process travel bookings, which leads to considerable cost savings. At the same time, staff gain time to devote to really important strategic tasks. Tasks that put the company ahead of the competition.

1.2 Advantages for companies

For companies, travel expense apps offer tangible economic advantages. With the right software, employees in the accounting department only need a fraction of the time to process travel bookings, which leads to considerable cost savings. At the same time, employees gain time to devote to really important strategic tasks. Tasks that put the company ahead of the competition.

1.3 Advantages of GOBD-compliant travel expense apps

• Changes to submitted travel expenses are traceable
• Avoidance of transmission errors
• Simple handling supports compliance with deadlines
• Audit-proof storage of receipts
• Integrated approval procedure
• Support for the development of best practice procedures
• Saves staff time for processing paper documentsof paper documents

2. How companies map travel expenses in accordance with GoBD

As expense receipts, travel expense receipts are tax-relevant documents. Therefore, the regulations of the GoBD apply. Travel expense apps make it easy for companies to comply with all legal requirements. It is important that companies pay attention to a GoBD test certificate of the apps. This ensures that they can map the legal requirements at all.

2.1 Zeitvorgaben für die Erfassung von Buchungen

Travel expenses must always be recorded with exact time data. With the help of travel expense apps, the information can be registered in the system with just a few clicks. The costs are recorded at the moment of entry, making it easy to record travel expenses to the day.

2.2 Correctness of records

If travel expense receipts are scanned with a mobile app and digitally processed, the manual typing of expense items is no longer necessary. This also eliminates one of the biggest sources of error in the processing of travel expenses. However, the prerequisite is that OCR software is used to recognise the information on the receipts.

2.3 Unalterability of Records and Verifiability and Traceability of Entries

To ensure legally compliant traceability, a travel expense app should be used for the entire process of recording travel expenses. Tested apps store data directly in approved file formats so that companies meet the requirement of immutability.

2.4 Availability and retention of documents

If companies use a GoBD-compliant travel expense app for travel expense reporting, it should automatically fulfil all requirements for audit-proof data storage, and this for the entire duration of the prescribed retention period. Companies should inform themselves in advance about the audit procedure used: In Germany, various audit standards are specified by the Institute of Public Auditors in Germany (e.g. IDW PS 880). Travel expense apps usually already offer integrated approval processes so that companies can implement the requirements for an internal control system without additional software.

3. Handling paper documents - document replacement scanning

In very few companies, the paperless office has already been fully implemented. Especially for travel processes, paper documents continue to be produced in practice. Companies can easily combine digital and physical documents in their travel expense reports. The GoBD does not stipulate that all receipts must only be available digitally. As for all other documents covered by the GoBD, it also applies to travel documents that digitisation may only take place in a GoBD-compliant scanning process.

When selecting their travel expense software, companies must ensure that both the pre-systems (e.g. for the cash register or travel expense accounting) and the main system (e.g. for financial accounting) meet the requirements of the GoBD. Only then is it possible to scan and digitally archive receipts such as travel expense receipts in replacement. Main systems from providers such as DATEV and Addison, but also pre-systems such as the LocaFox POS system are GoBD-compliant.

4. Choosing the right travel expense software

The range of travel expense software is large. It is not always easy for companies to see where the exact differences lie. They should definitely take the time to compare the functions, the suitability for their company and the service in detail. An application should have the following features if companies do not want to change providers after a short time in frustration.

4.1 Mobile application:

In order to effectively simplify the processes, the travel expense software should enable the mobile entry of travel expense receipts. Employees should be able to scan receipts with their smartphones and create and submit their expense reports directly from the mobile app. This can reduce the workload of the finance department enormously (e.g. up to 80 % with Circula).

4.2 Mapping of the entire business process:

The travel expense software should offer sufficient interfaces and be able to be integrated with other financial applications without any problems. Companies that use DATEV Unternehmen Online should also make sure that the application supports a connection here. It is also important that the tool allows for the creation of travel expense guidelines in order to give the user the possibility to define regulations for budgets on a departmental and individual level.

4.3 Audit-proof:

Not all travel expense software meets the strict requirements of the GoBD and DSGVO for traceability and unchangeable archiving. Some providers adorn themselves with certifications, but if these do not fulfil the GoBD and DSGVO requirements, they are worthless for German companies. It is important to always keep a critical eye here to avoid getting into a problematic situation in the future.

4.4 Usability:

The best travel expenses app is of no use if it is not (sufficiently) used by employees. If employees have difficulties finding their way around the interface of the application, the processes will not be faster and the potential of the software will be wasted. Every reputable provider will give companies the opportunity to get to know the application free of charge for a trial period. This allows them to check whether the usability meets their own requirements and whether processes can be adapted to the company structure.

4.5 Internationality:

Companies with many trips abroad should make sure that the travel expense software automatically converts currencies into euros in travel expense processing and saves users from having to use third-party tools. In addition, the software should support the languages relevant to the company.

4.6 Automated:

Travel expense software is only efficient when it works automatically, recognises problems early on and thus relieves the accounting department and the employee from future problems. This includes, for example, the creation of bookings, scanning of receipts or the identification of duplicates and other tax regulations (e.g. 3-month rule). But the automatic flat-rate calculation of lump sums and kilometres can also make work much easier.

Travel expense management with Circula Expenses

With Circula's travel expense software you can automate your travel and expense reporting quickly and easily. Get first insights into the advantages of our software and why more than 1000 companies already rely on Circula:

More about the benefits of Circula Expenses.

Conclusion

For a long time, the high effort involved in preparing travel expense reports was a nuisance. With the digitalisation of travel expense reports, however, this is now a thing of the past. With the help of digital software, companies can increase internal processes enormously and save high costs in the long run. Of course, it is important to ensure that all GOBD and German tax law requirements are met. In addition, it is crucial to find a suitable and intuitive travel expense software so that a system introduction and process conversion can be carried out without complications

Fazit

Lange Zeit war der hohe Aufwand bei der Erstellung der Reisekostenabrechnung ein Ärgernis. Mit der Digitalisierung der Reisekostenabrechnung gehört das aber nun der Vergangenheit an. Denn Unternehmen können mithilfe von digitaler Software interne Prozesse enorm steigern und langfristig hohe Kosten einsparen. Natürlich gilt es darauf zu achten, dass sämtliche Bedingungen an die GOBD und das deutsche Steuerrecht erfüllt werden. Darüber hinaus ist es entscheidend eine passende und intuitive Reisekosten-Software zu finden, damit eine Systemeinführung und Prozessumstellung ohne Komplikationen durchgeführt werden kann.