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Expense reimbursement

Expense reimbursement

What is expense reimbursement?

When employees spend money while travelling on business for the company and then request compensation from the firm, this is known as expense reimbursement. Repayments to employees may differ depending on the restrictions outlined by the company in the spending policies.

Examples of expense reimbursement

When an employee purchases office supplies for the company and then claims the charge, this is a straightforward illustration of expense reimbursement. The employee saves the receipt after making the transaction and submits an expense report. Once employees gain clearance, it qualifies as a legitimate employee expenditure reimbursement.

Additionally, employees can submit an expense report at the conclusion of the trip to recover their costs for travel, lodging, and daily living expenditures. When employees submit a claim for travel costs to a customer location, this is another illustration of travel reimbursement. The normal mileage rate provided by your company is used to determine the cost of the trip.

You can get the reports even as the charges are incurred if your organisation uses a travel and expense management platform. Employees claiming compensation for travel expenses for business purposes is another wonderful illustration of expense reimbursement.

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What counts as employee business expenses?

There are various ways to categorise company expenses. However, the only thing that matters is that any personal expenses paid by employees must adhere to the organization's specified travel and expenditure policy.

The business expenditure reimbursement is valid if the expense fits into one of the categories listed below.

Is the business expense actually required? Any employee in your position would they incur the same costs?
The cost of travel is necessary and inevitable for the job to be completed.
when workers pay for expenses incurred while working.
An expense that the employee individually paid for has been claimed for reimbursement.
Employees incurred the costs just to carry out their duties.