Answered.
Reimbursed expenses are payments made by a company to an employee who has made a claim for expenses incurred out of their own pocket for the business, through work-related activities. In general, reimbursable expenses are determined and communicated well in advance so that employees are clear what they can expense as a business cost and what will be approved and reimbursed. The reimbursement is made based on evidence, or receipts, provided in the expenses claim.
The exact data that needs to be included varies by country, but generally, the documentation must capture the amount, tax, time, date, description of the expense and where it was purchased.
To reimburse expenses, employees must also provide a clear business reason or justification for the expense. For example, common reimbursed expenses include:
For most companies, the biggest challenge – and the reason reimbursing employee expenses may take longer – is keeping track of business expenses. This can be difficult for a number of reasons.
Clearly, there are challenges on both the business and employee side with manual expense management. But in order to better manage expense reimbursements, businesses can leverage expense management automation software.
The fastest and most effective way to reimburse business expenses is through expenses management software that can automatically approve and reimburse small expenses and allow employees to submit on the go. Expenses management technology that also includes OCR (optimal character recognition) can extract key details from receipts that make submission and approval seamless while ensuring compliance data is always captured. This will provides finance teams with high-quality and timely data – rather than waiting until the end of quarter to obtain a view of their expenses and teams will have access to real-time insights.
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Before you go, check out how SalesTrip does expense management.
Go to Expense Management