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Expenses receipt format for corporations

receipts and expense reporting trends there's an interesting trend revolving around these two issues and it's not driven by tax reporting requirements but rather corporate distrust of employees welcome to accounts payable soundbytes the program where we explain simple and complex accounts payable issues in short concise soundbites i'm mary schafer founder of ap now and today we're going to talk about receipts and expense reports i want to start off with just briefly going over the irs requirements the irs requires that you have a receipt for every expenditure over 75 dollars now what i find especially interesting about this requirement is that the irs raised the level to 75 in 1995 and very few companies have followed now you can do the math just as easily as i can and you can realize that 1995 was 27 years ago and most companies have not followed in fact they've done something completely different now just an fyi and we're going to talk a little bit more about it towards the end of this video currently the irs does not require the detailed meal receipt okay so what's going on why did most companies not follow the irs well there's the little talked about what i call the 2495 problem most companies if you went back a number of years like 10 years had a receipt requirement of 25 what these companies found over and over again if they did some data analytics is that there was a preponderance of meals put in for 24.95 24.50 something along that nature a lot more than the analytics would imply now think about it you're on a business trip you go out for a meal and maybe just go to mcdonald's you tie it you grab a burger you go back to your room you watch a movie and you go to bed and so you've got a receipt for 8.95 but your company will give you up to twenty five dollars for that meal so many people were throwing the receipt out and instead of reporting the mcdonald's meal just reporting that they had spent 24.95 for dinner and you know making a few bucks on that okay so you know companies figured that out they did some data analytics and needless to say they weren't real happy about it now before i get to the trends and predictions which i think are kind of interesting i'd like to invite you to subscribe it's free completely private and you can unsubscribe at any time you want and by ringing that bell next to the subscribe button on youtube you'll be notified when we post new content which we're doing now on tuesdays and thursdays when it comes to accounts payable content and at least for the foreseeable future we're going to be posting wordle videos on saturday mornings at 9am and by the way you don't need to have a youtube account to subscribe you can subscribe if you have a gmail account okay so the two trends number one there is a move towards getting all receipts regardless of the dollar amount i've done a few talks recently online to various different groups about expense reporting and when we ask questions there have been a preponderance of attendees who are getting all receipts in one group recently there were over 200 people listening and when we asked the question only three percent three percent had matched the irs level of 75 dollars with almost three quarters getting all receipts okay now when we talk about getting all receipts you may be sitting there thinking mary what are you talking about we're overworked as it is just because you get all the receipts doesn't mean you have to check them all you can spot check also almost three quarters are now requiring the detailed meal receipt and half of those are requiring the detailed meal receipt regardless of how much money was spent on the meal while the remainder were requiring that you get the meal receipt only if you were over whatever the receipt requirement was so prediction i believe in fairly short order very short order getting all receipts plus the detailed meal receipt will become a standard industry practice and remember spot checking just because you get all those receipts doesn't mean you have to look at every single one now if you're wondering why this focus is on and instead of just trusting employees you're not alone in sound bite number 55 we discuss questionable employee expense reporting habits and how that could cost your company dearly and we'll have a link to it in the show notes and on youtube a link will appear momentarily to the left as always we appreciate your comments your thumbs up your subscribes and your shares they're always appreciated