#16 Claiming Expenses
Feb 9th, 2009 by pfi
As a professional pastime, accountants are experts at claiming expenses. This practice has also been called expensing it, charging it, running it through, and so on. Accountants call it whatever they want since it’s a perk of the job, though the IRS doesn’t need to know that.
Here’s how it works:
1.) Buy something possibly work related
2.) Claim it as an incurred, necessary expense
3.) Profit!
Accountants, as you can imagine, have claimed or tried to claim pretty much everything over the history of time. Legitimate claims include meals, mileage, office supplies, airline tickets, recruiting, etc.
Accountants are so good at this pastime of theirs that everything gets upgraded and overspent. Meals become full course feasts with enough extras to take home for days. Airline tickets involve upgraded seats and extra luggage. Recruiting is a special circumstance since there is no limit to spending and any fixed “budget” is merely a suggestion. Recruiting says $50 per person and the accountant knocked the bill out of the ballpark? No problem.
Note that the above examples are only a fraction of what gets run through and claimed as expenses. There is no limit really to what qualifies. Cell phone data plans, professional publications, rental car upgrades, and bar tabs are only the tip of the iceberg for claimed expenses.
Of course in this economy, all companies are trying to reduce costs and survive. The reality is that companies with big egos need to maintain an expensive image to recruit future accountants, who work and claim outrageous expenses.
All you need to know is that if an accountant offers to “run it through” during your lunch, you should feel free to order whatever you want and maybe the dessert as well. The accountant won’t care, you don’t care, and the Company paying for it doesn’t care since it’s immaterial.
Nice site. There
I agree. When I’m out to lunch or dinner with clients or partners, you know they are going to cover the tab so what you do is order a drink, something expensive that you usually wouldn’t order, and dessert.
Another common expression to denote a claimed expense = “Banging it through” or “Bang it through.” Note that increasingly tight expense policies result in many expenses getting “kicked back” with requests for a “business purpose.” So, that happy hour tab you picked up the other day? You better start getting creative on the ‘ole expense report if you really want to get paid…
Oh that’s an easy one: just use code “11181593: New Business Development/Practice Development- Local Office”
I used to have this staff who charged overtime meal and transport expenses for a day where she was off work. When I confronted her, she said, “oh that’s right..”
I had this colleague who has a client code for each house improvements, e.g. a new gate is “IDL007”, a new fridge is “CIT050″…
[…] accounting, you typically have the summer internship which is all about learning how to claim expenses. The winter internship falls in busy season and manages to involve something called work. […]
At PwC they have given the useless HR drones the task of reviewing peeps expense report dating back as far as a year or more and firing and/or forcing the employee to cover the expense out of their own pocket.
Has anyone seen that forward where the manager’s Sky Mile membership expense claim gets denied, and then he replies back asking for an expense code for when you’re gone 8 months out of the year and your wife is banging your Realtor? Epic.
Dear Daniel,
Your expense submission for Payroll Posting Date (10/07/06) contained item(s) which is not reimbursable under the firm’s Expense Reimbursement Policy (XXX)
Charge Type – Dues – Airline and Hotel Clubs
Expense Date – 9/21/06
Expense Amount – $350.00
Adjustment Reason
Airline club dues are reimbursable for senior managers and above that have flown 15+ roundtrip flights in the past 12 months.
An adjustment of ($350.00) was applied to your 11/17/2006 expense reimbursement.
__________________________________________
RE: Quick question, since I’m out of town 7 out of 12 months, is there a charge code for when your you girlfriend is f*cking her appraiser while you sit in Chicago by yourself on your birthday? Just checking, since you a-holes are so keen on keeping $350.
__________________________________________
RE: Dan
I am not sure that was the best response. I understand your frustration. Let them know that I and the engagement partner approved this expenditure