Most employers have employees who travel on business and entertain clients at least occasionally. To keep expenses under control and ensure ease of administration, most companies develop policies and procedures for company reimbursement of travel expenses. Policies for business travel and entertainment should be designed to support the employer's overall business objectives as well as limit employee abuse.

Policies vary considerably. For example, some employers have employees travel first class. Others limit travel and entertainment expenses to the bare minimum. Most employers have a policy that fits between the two extremes. Some employers reimburse for actual expenses while others pay a set daily amount to cover some or all cost (per diems).

An effective policy should include specifics on what--and how much--the employer will pay for travel, hotels, registration fees, meals, and miscellaneous expenditures.