How Should We Handle Travel Expenses for Our Marketing Manager's Field Trips?

Hello, we have recently hired a marketing manager in our firm. He has started going into the field for marketing activities, so I am looking for a good travel plan. Moreover, he is using a two-wheeler (his own vehicle).

Ideal travel expenses for petrol charges

What would be an ideal travel expense as per the petrol charges? Additionally, we have other branches as well. In that case, if he is not using his own vehicle, what will be the cost (by bus/train)? Is it appropriate to give the actual bill, or is there any specific methodology followed in the industry?

The region I am talking about is from Cochin (Kerala, India) to Bangalore, India.

Considering the travel expenses for your marketing manager, especially in terms of petrol charges and alternative transportation costs, it's essential to establish a clear and fair reimbursement policy. Here are some practical steps to address these aspects:

Petrol Charges Reimbursement:
- Methodology: It is common practice to reimburse employees for petrol charges based on actual expenses incurred. However, to streamline the process and ensure transparency, you can consider implementing a standard mileage rate for two-wheeler travel. This rate should align with the prevailing rates in the industry or government guidelines.
- Documentation: Request your marketing manager to maintain a detailed log of their travel, including the date, starting point, destination, distance traveled, and petrol expenses. This log will serve as the basis for reimbursement calculations.
- Reimbursement Calculation: Calculate the petrol reimbursement based on the standard mileage rate or actual expenses, whichever is lower. Ensure that the reimbursement process is efficient and timely to avoid any delays or discrepancies.

Alternative Transportation Costs:
- Methodology: When your marketing manager uses public transportation like buses or trains for official travel, you can opt for a reimbursement policy based on actual ticket expenses. Alternatively, you can establish a fixed daily allowance for such travel.
- Receipt Submission: Require your marketing manager to submit valid receipts or tickets for bus or train fares to claim reimbursement accurately. This practice helps in verifying the expenses and maintaining financial transparency.
- Fair Reimbursement: Ensure that the reimbursement for alternative transportation costs is reasonable and aligns with the actual expenses incurred. Consider factors like distance, ticket prices, and the frequency of travel between branches.

By implementing clear policies and procedures for petrol charges reimbursement and alternative transportation costs, you can streamline the travel expense management process for your marketing manager while ensuring fairness and compliance with industry standards.