T&E

Definition of T&E

T&E, which stands for Travel and Entertainment expenses, refers to the costs incurred by business travelers for activities related to their work. These expenses are generally reimbursed by their employer, as they are considered necessary for the employee to carry out their duties.

The term “travel” includes expenses such as airfare, hotel accommodations, ground transportation, and meals. Travel expenses are typically incurred when employees need to visit other company branches, attend conferences or trade shows, or meet with clients or partners.

The term “entertainment” refers to expenses related to entertaining clients, prospects, or business partners. This can include meals, drinks, tickets to events, and other forms of hospitality. Entertainment expenses are designed to foster positive business relationships and are considered important for promoting company growth.

However, companies often have strict policies regarding T&E expenses to ensure that the expenses are necessary and reasonable. Employees are required to provide detailed receipts and documentation for their expenses, and inappropriate expenses can result in disciplinary action.

In summary, T&E expenses are an important aspect of business travel and entertaining clients or partners. They are designed to facilitate business relationships and are generally reimbursed by employers. However, they must be reasonable and necessary and are subject to company policies and guidelines.