With the new administration coming in, you might have heard some talk of regulations changing and government positions being purged. However, we won’t know for sure what’s happening until it actually happens. Politics can change quickly as situations change and different people weigh in on key issues.
U.S. Government Per Diem Rule Changes
If you’re a government contractor, you must use the General Services Administration (GSA) per diem tables to calculate city-specific travel expenses. Many other organizations with employees who travel also use these rules as a standard. As you may be aware, the per diem rates are changing this year.
For 2025, most counties in the continental U.S. have the same GSA per diem standard rate of $178, which includes $110 for lodging and $68 for meals and incidental expenses. There are 296 defined non-standard areas with higher per diem rates, with meals and incidental expense rates between $68 and $92.
Some locations that previously had non-standard rates have now been moved into the standard rate category. These include Ft. Wayne, IN (Allen County); Canton, OH (Stark County); Mentor, OH (Lake County); East Greenwich / Warwick, RI (Kent County); Waco, TX (McLennan County); and Wisconsin Dells, WI (Columbia County).
Government per diem rules usually update around the new year, but they can also update at other times for different jurisdictions. Changes occasionally happen in the middle of the year.
If you’re still tracking GSA per diem rates and related expenses manually, you might want to look into a more efficient expense tracking system like DATABASICS. This system is designed to help you adapt to rule changes like these with minimal friction. As soon as the government releases new rates, we feed them into our system so they’re automatically updated for you.
IRS Mileage Reimbursement Changes
IRS mileage reimbursement rates change every year, and your organization needs to be prepared. This year, we’re up 3 cents per mile driven for business use, bringing you to a total of 70 cents per mile. However, the mileage rates for charitable organizations, as well as medical and moving purposes for certain active-duty members of the military, have stayed the same at 14 cents per mile and 21 cents per mile.
DATABASICS adapts to the new IRS mileage reimbursement rules immediately after they change. Our tool automatically updates the rate when you add your data.
Best of all, working with us means you’re getting a continually updated and improved tool. On top of keeping our system up to date with changing government standards, we’ve been developing our AI tool, DB, which now lets you do natural language queries about expenses.
For instance, if you’re wondering how much your organization has spent on a specific project, you can directly ask DB. The tool will quickly answer the question. DB also works for tasks like reconciling credit card transactions. We’re already working on some additional capabilities, so stay tuned for more updates about DB.
SEC and FASB Segment Reporting Rules
The Securities and Exchange Commission (SEC) and Financial Accounting Standards Board (FASB) has begun requiring public companies to meet new segment reporting standards. Under the new rules, your company may need to incorporate new disclosures about certain expenses in your 10-K filings this year. You may also need to meet new quarterly requirements throughout 2025.
As a reminder, significant segment expenses under the rules are expenses that are:
- Significant for your segment
- Regularly reported to or easily derived from information provided to the chief operating decision maker.
- Included in the reported measure of segment profit or loss.
Direct expenses, shared expenses, allocated corporate overhead, and interest expenses can all be significant segment expenses.
DATABASICS can help you keep track of significant segment expenses. Our expense tracking system can help you capture all relevant segment expenses so you can stay in compliance with the new reporting requirements.
Make Expense Management Easy With DATABASICS
DATABASICS can help you track, calculate, and manage expenses more efficiently than ever. Our system automates repetitive processes, including reminders, notifications for missing data, and updated per diem and mileage rates.
Curious about what DATABASICS can do for your accounting and finance team? Request a demo with us today.
