One of the first rules of thumb to remember when you are grouting is to understand how cement works. Because cement is a basic building component within grout, tile grout takes on the characteristics of cement. This means it hardens like cement does and also expands and contracts with the weather. It also holds moisture and needs to breathe to void the condensation, similar to a sponge.
All tile projects need expansion joints around any termination point of the overall installation. This means that anywhere the tile comes up against another surface and terminates against that other object or material, there needs to be a gap so that the movement of the tile floor as it expands in the summer months and shrinks in the winter months doesn’t pop the tiles off the floor with pressure.
Caulking is the preferred material for any termination point within a tile installation. That means that all inside corners utilize caulk instead of grout, as well as the areas where tile ties into another object, such as around toilets, cabinets and bathtubs. This allows the tile to move with the seasons while the joint still remains full with caulk. Grout, on the other hand, will crack out with movement.
If you have plenty of expansion joints around the perimeters of the room, you don’t have to stress so much about the joint around any flanges, such as for the toilet. The reality is that you have the option to grout the flange or fill it in with caulking, depending on if you are working within a wet area such as a bathroom, or a dry room like a living room installation. Just remember that while you can technically grout the flanges in, the grout will crack out eventually with movement as the tile presses the grout against the flange.