If you are running a business and deal with expense reimbursement on daily basis then you are looking for the best ways to simplify this task. If you want to make this task accurate and fast then you are at the right place.
Here, you will get information about it. You will get everything that you need to know about it. So, read this article from start to end to get useful information.
What is expense reimbursement?
Employees experience some expenses when going on business travel or in the daily experience expenses that they pay from their pocket on the behalf of their organisation. The process of repaying the expense that they pay from their pocket is simply known as expense reimbursement.
Expense reimbursement is the amount that employees claim from the company that they pay for the expenses on the behalf of their company. This repayment relies on the company’s Travel and Expense (T&E) Policy.
I am going to give some examples here to clarify your concept of expense reimbursement.
Employees may experience a different type of expense by working in a company and if the employee pays for that expense, he can claim reimbursement from the company. Such as, if a worker buys office supplies for the company then he/she can claim reimbursement. Once the worker purchases anything and pays for it on the behalf of a company, he/she needs to collect and save receipts and create an expense report.
Then the expense report is submitted to the manager and finance team. If the expense report complies with the company’s travel and expense policy (T&E Policy) then the manager and the finance team will approve the report. It will become a reimbursement after approval and the employee will be reimbursed.
Workers can also claim travel expenses if they pay for anything during their business travel. It also needs to follow the process above like saving receipts, making and submitting an expense report, approval, and then reimbursement.
The process of expense reimbursement makes easier by using the automated expense management tool. If your company uses such tools, you do not need to collect the receipts; you can make and pull the report as you spend money. Another major example of expense reimbursement is when employees claim for the money that they spend during a business trip.
What are the types of expense reimbursement?
Expense reimbursement is categorised into several types. Some of the major types of reimbursement are given below:
The major type of reimbursement that companies have to deal with commonly is travel expenses. During a business trip, there are many expenses that an employee experience and pay for them on the behalf of the company. If you also experience such expenses and incur costs then you can claim reimbursement by making and submitting the business travel expense report. The report should contain the detail of all the expenses that you experience and pay for during your business trip.
You can submit the expense report for approval. The finance team and manager verify the legitimacy of your finance report. If your report obeys the T&E policy of the company, then it will approve and you will get your travel expense reimbursement. This process is usually made with great ease thanks to integrations with BSM (Business Spend Management) software, watch a demo if you’re looking to learn more.
Customer support and meal
To grow the business relationship, employees may arrange a meal with the customers to provide them with better customer support and to grow better relations with them. There are some situations when employees pay for meals from their pocket. This meal and customer support can be in the company’s better interest so it can be reimbursed.
The employees only need to make an expense report and submit it for approval. The finance team will approve it after examining its legitimacy and compliance with the company’s policy. The employee will be reimbursed.
Communication expense/office supply
If you are running a global business then there is a chance that your workers are working from different locations. Companies set reimbursement connectivity expenses to ensure connectivity between employees.
Many companies pay for employees’ cellular phone charges, internet, and smart devices. Employees can claim such expenses from the company by making and submitting expense reports.
Medical or healthcare expenses
Some companies provide medical and healthcare facilities to their employees. Employees can claim reimbursement if they pay for their healthcare by making and submitting an expense report. They should attach all their medical reports with the report to get expense reimbursement.
Zuella Montemayor did her degree in psychology at the University of Toronto. She is interested in mental health, wellness, and lifestyle.