For many businesses, the process of managing employee travel expenses can be overwhelming. Traditional expense reporting and reimbursement can be time-consuming, confusing, and often leads to ill-will between employees and management. Fortunately, there are other approaches, such as combining per diem with the CLC trip card, that can simplify accounting, preserve relationships, and maximize the value of company travel.
What is per-diem?
“Per diem,” which means “per day,” is a flat, daily allowance provided to employees for travel expenses. The funds are intended to cover the costs of lodging, meals, transportation, and other expenses. This approach has several advantages, including:
- It clarifies what your company is willing to pay for travel expenses, without having to set caps for individual categories or running the risk of conflict between your company and the employee over excessive spending.
- Per diem allows employees to make their own decisions about spending on accommodations, meals, and transportation, making choices that fit their schedules, personal preferences, and health needs.
- Prevents employees from having to use their own funds to cover travel expenses and then wait for reimbursement. This can improve employee morale and can make it easier for traveling workers to enjoy non-working time while on a business trip.
- Simplifies bookkeeping by eliminating the need to review expense reports and issue reimbursements.
- Simplifies tax issues, as the IRS recognizes and authorizes per diem amounts based on your location.
At CLC Lodging, we can further simplify per diem with the CLC Trip Card. These virtual cards are assigned with funds authorized by your management team. Employees view the cards on any device and use them to pay travel expenses. Purchases are automatically tracked and recorded, reducing the need to collect and submit paper or electronic receipts.
Since your company sets the card’s expiration date, any unused funds are not charged to your business, so there is no need to request the return of unused funds from your employees. All expenses charged to the card are provided to your company for easy reporting and record keeping.
Want to see how this approach works in real life?
View our recent case study that tells the story of how a move manager at Two Men and a Truck - Fort Worth uses the CLC Trip Card to send money to traveling team members on a minute’s notice. The business found that it could reduce paperwork, expenses, and hassle by solving traveler expenses with the CLC trip card.