Incidental Expenses

Incidental expenses are the small, often unplanned costs that arise during business travel. Unlike major expenses such as flight tickets or hotel bookings, incidental expenses are typically for things like meals, tips, baggage fees, or other minor services. These expenses can add up quickly over the course of a trip, and they are generally considered necessary for the completion of a business trip, although they are not always reimbursed under standard travel policies.

For businesses, managing incidental expenses is important for both budgeting and employee satisfaction. Employees may need to submit receipts for reimbursement for these small, day-to-day expenses, which can include things like transportation costs, snacks, or parking fees. Businesses often set daily per diem allowances to cover incidental expenses, simplifying the reimbursement process and ensuring that employees are not financially burdened during business travel.

Many companies use travel expense management tools to track incidental expenses, helping ensure that employees adhere to company policies and that reimbursements are processed smoothly. By maintaining clear policies and categorizing incidental expenses, businesses can avoid confusion and improve overall efficiency in their expense reporting systems.