A further deep dive into different expense reporting topics in Russia
Accounting database / Balance sheet and Profit and Loss statement
In standard situations travel costs are expensed and are visible on the profit and loss statement.
In case an employee received cash advances (for bigger trips) or used a company credit card, and for both did not document the expenses on the balance sheet, then the employee has a liability towards the company, documented on the balance sheet. These can become substantial sums and several month after a business trip it needs an extremely high effort to collect copies documenting expenses.
Outstanding balances – missing documents from employees
Outstanding balances of employees should be reviewed from time to time, since when an employee leaves these amounts sometimes come as a surprise to the employees – (he remembers that he still needs to e.g. hand in the hotel documentation for a business trip several month ago) – and can create tensions. The same goes for the company as this debt of the employee.
Foreigners working in Russian companies
For smaller foreign companies in Russia one advise is to especially check the situation concerning a lack of documents with their foreign employees. They often do not understand these concepts about documents and are also often higher up in the hierarchy and accountants might not follow up active enough with them. Or sees it as responsiblity of the employee to provide the documents.