This Free Travel Expense Policy Template Could Boost Your Program

Corporate travel is often one of the largest company expenses, typically falling just behind employee wages and real estate payments. And keeping these costs in check requires a clear, travel-specific expense policy.

In this blog post, we’ll explore why a travel expense policy is vital, outline key elements to include, and provide you with a free downloadable template to get started.

What is a Travel Expense Policy?

A travel expense policy defines which travel-related expenses are reimbursable, how they should be submitted, and what documentation is necessary for compliance. This kind of policy is indispensable for setting expectations and making sure that business travel spending aligns with company goals.

5 Reasons a Travel Expense Policy is Important

• Set employee expectations: With clear guidelines, employees know exactly what travel expenses are covered and can confidently plan trips.
• Control travel spending: Clear travel guidelines prevent unexpected costs, so every travel dollar is well spent.
• Simplify the reimbursement process: Defined steps for submitting travel expenses reduce confusion and speed up reimbursements.
• Foster accountability: A travel-specific policy promotes responsible spending, making travelers more mindful of their choices.
• Enhance compliance and auditability: Travel expense policies help ensure adherence to tax laws and make audits simpler with detailed recordkeeping.

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“As you put together a formal travel and expense policy, it becomes obvious that you need a tool that allows you to book travel against that policy and aggregate expenses that fall into that policy.”

Vinay Shiriwastaw

Chief Commercial Officer

Key Components of a Travel Expense Policy

Here are some important sections to consider for your travel expense policy:

• Purpose: Explain the policy’s objective and why managing travel expenses is important.
• Scope: Clarify who the policy covers — such as all employees or just specific teams traveling for business.
• Expense categories: Define reimbursable expenses, like flights, lodging, meals, and ground transportation.
• Spending limits: Set specific limits for each category (e.g., maximum daily meal allowance).
• Approval process: Outline the steps needed for travel approvals, including pre-trip approval requirements.
• Submission guidelines: Detail how and when to submit travel expenses, including the required documentation.
• Reimbursement timeline: Set expectations around when employees can expect reimbursement.
• Non-compliance consequences: Clearly outline any penalties for policy violations to promote adherence.

Download and Customize Your Free Travel Expense Policy Template

To help you get started, we’ve created a free template you can download and tailor to your organization’s needs:

• Download the template: Access our travel expense policy template below.
• Customize the content: Adjust the template to reflect your company’s travel practices and limits.
• Collaborate with stakeholders: Get input from HR, finance, legal, and any other key teams.
• Communicate the policy: Share the policy with your employees and consider hosting a Q&A session.
• Review and update regularly: Keep the policy current to reflect changes in company practices or regulations.

A travel expense policy simplifies travel for your employees and helps protect your company’s bottom line. Get started by downloading our free template, designed to help you build a comprehensive travel expense policy that suits your organization’s needs.

Challenges With Static Travel Expense Policy Documents — And a Better Solution

Crafting a travel expense policy is a key step in managing business travel costs. However, static policy documents can quickly become outdated, leading to enforcement issues and extra work for everyone involved.

Here are some of the challenges that come with static policy documents:

For Administrators:

• Manual updates: Revising and distributing updated documents takes time and resources, especially in fast-evolving industries.
• Compliance oversight: Enforcing policies requires ongoing oversight and frequent checks, adding to the administrative load.
• Limited transparency: Without real-time visibility, administrators miss opportunities to monitor policy adherence or spot areas for improvement.

For Traveling Employees:

• Confusing changes: Outdated documents can create misunderstandings, resulting in inconsistent compliance.
• Inconvenient access: Static policies are harder to reference while on the road, especially when employees need quick answers on allowable expenses.
• Rigid guidelines: Fixed documents can’t easily accommodate unexpected changes, leading to frustration or non-compliance.

Above: With Navan, employees see expense rules in real time as they book, with clear, up-to-date guidelines right in the mobile app.

The Solution? Dynamic, In-App Travel Expense Policies

Navan’s travel and expense platform breathes new life into static travel policies. Employees see expense rules in real time as they book, with clear, up-to-date guidelines right in the mobile app. They’ll know exactly what they can spend on meals, lodging, and more — saving time and boosting compliance.

Find out how Navan can simplify your travel expense management needs. Request a demo and get started in just a few minutes.