How do you count work expenses in your budget?

[mayodt]

Hey guys,

Title really asks it all, anybody that gets work reimbursed costs, how do you count these work expenses in your budget? For example, if you get a per diem of say $50 and you spent $30 on food that day, would you put on that day for "dining out" at $30-$50 = -$20 and then when you get your pay stub, subtract all the expense reimbursements to find your true income? This is how I have been doing it but I was wondering if there is a better way.

Thanks!

[jlcnuke]

I count spending for food (in or out) as spending period. Per diem I count as part of my income. I figure I'm going to eat either way (whether on the road or not) so that spending should be accounted for. I'll make a note that the per diem was used to cover higher restaurant spending due to being on the road for months that it's applicable though, just so I have perspective on why those costs where higher (though I've taken to trying to avoid eating out much on the road unless I"m only gone for a day or so).

Hotel/airfare/etc expenses that I wouldn't have EXCEPT due to being on the road for work, I zero out (subtract the spending from my budget and the reimbursement from my income both).

[Zikoris]

I just cancel it out on both sides of the equation, which is easy because I only get reimbursed for the exact amount, not extra. I don't have a lot of these, but my boyfriend does somewhat regularly (like, ordering a lunch for 20 people or booking a venue).

If I got extra, I think I would probably have a separate card for those expenses to keep it totally separate, then do some sort of monthly reconciliation to split the reimbursement from the extra. I'd cancel out the expense and reimbursement, then list the "bonus" money as income.

[joonifloofeefloo]

I basically do it like jlcnuke does.

A bit further: In my software (I use YNAB), I created a few extra categories, e.g.

1. Business Reimbursable - The outgoing expense is logged here. When it's repaid, it's income in the same category.

2. Business Portion - These are personal expenses that I get to claim a portion of on my taxes. So in the past my rent, phone, etc, went in here, and end of year I knew what to claim the percentage on.

If I'm reimbursed more than I spent, I just count it as income.

Sounds to me like essentially the same as what you do, OP, but the math is done for me (and there isn't a single cheque combing all of it).

[2Birds1Stone]

Since my food budget when traveling is use it or lose it, I don't count it at all.

Spending goes on the corporate card, expenses are done, employer pays off the card.

If I was getting that same money tax free regardless of if I used it, then yes I would try to eat less expensive food and count the spending, as well as the per diem as income.