What is expense reimbursement?
Expense reimbursement is the process of reimbursing employees for business-related expenses they have incurred on behalf of their company. These expenses can include travel expenses, meals, lodging, transportation, and other expenses that are necessary for conducting business.
Typically, employees are required to submit receipts or other documentation to support their expenses, and the company will review and approve the expenses before reimbursing the employee.
What are some common types of expenses that are reimbursed?
Some common types of expenses that are reimbursed include:
- Travel expenses, such as airfare, rental cars, and hotel stays
- Meals and entertainment expenses, such as meals with clients or business partners
- Office supplies and equipment
- Professional development expenses, such as conference fees and training courses
- Transportation expenses, such as mileage or public transportation costs
How do companies typically handle expense reimbursement?
Companies typically have a formal expense reimbursement policy that outlines the process for submitting and approving expenses. This policy may include guidelines for what types of expenses are reimbursable, the documentation required to support expenses, and the timeline for submitting expenses.
Employees are typically required to submit their expenses through an online system or by submitting paper receipts and other documentation to their manager or the finance department. The company will review and approve the expenses, and then reimburse the employee either through direct deposit or by issuing a check.
What are some best practices for managing expense reimbursement?
Some best practices for managing expense reimbursement include:
- Having a clear and concise expense reimbursement policy that is communicated to all employees
- Providing training to employees on the expense reimbursement process and policy
- Requiring employees to submit expenses in a timely manner
- Reviewing expenses carefully to ensure they are legitimate and comply with company policy
- Using technology to streamline the expense reimbursement process, such as an online system for submitting and approving expenses
Nick Simpson
Founder @ WorkMade
I started working for myself at 9. My first tax bill showed up at 14. I didn’t understand it, and nobody around me could really explain it. If you’ve been there, you get it. Twenty years later, after creative directing for brands in New York and buying and selling a few companies, I kept seeing the same thing: smart, talented people losing money to a system that wasn’t built for how they work. That’s why I built WorkMade. Not to make taxes “easier to understand” but to make them disappear into the background, so you can get on with your life.