Expense reimbursement is a major thing that companies have to deal with. If you are working in an organization then you should be aware of the term expense reimbursement. If you do not know about it or getting information about it then you are at the right place. This article will tell about it in detail.
What is Expense reimbursement?
If a worker incurs a cost on the behalf of the organization on the expenses that he/she experience for the organization then the repayment of the amount from the company is known as Expense reimbursement.
It is the cost that workers spend on the behalf of their company and then claim back from the company.
Following are some example that helps you to easily understand the concept of Expense reimbursement:
If you go on a business trip to represent your organization then you will experience many expenses. If you do not get money for them from your company and pay them by your pocket then you can claim Expense reimbursement from your company after returning from the trip.
To do this, you need to create an expense report, which will include all the expense detail that you spend from your pocket. You need to attach the receipts or handwritten bills as proof. Then you need to submit the report to the manager and the finance team.
Every company has its own travel and expense policy. The manager and finance team check the validity of your expense report and analyze whether the report obeys the T&E policy of the organization. If your report is valid and according to the company’s T&E policy then the manager and finance team approve your report and you will get your Expense reimbursement.
How to get Expense reimbursement
If you want to make a professional expense report to claim your Expense reimbursement then you should follow the steps below:
1. Make expense report
It involves following things:
• Mention name, department, and contact information
First, the report should contain the name, department, and contact information of the workers who want to be reimbursed. Your employer and finance team need to know which department you are in to analyze the purpose of the expense.
• List the expense’s name
After mentioning your name, department, and contact information, you need to enlist all the items or expenses you pay for from your pocket. You need to give detail that when and how you incur your cost. Mention the dates and payment method also.
• Attach Receipts and bills
To proof the expense, you need to attach all the receipts and handwritten bills with the report. If you do not save and attach the receipts and bills, it will be hard for you to be reimbursed.
If your organization uses Travel and expense management software then you can take pictures of receipts and handwritten bills and automatically make an expense report, otherwise you need to collect and attach the hard copies of the receipts and bills with your report.
• Total amount
In the end, you need to mention the total amount that you want to be reimbursed. Remember that your report should be valid and you should attach all the receipts with the report to prove the validity and legitimacy of your report.
2. Submit expense report
After making the expense report, you need to submit the report to the manager or related department like the finance department.
3. Analyzing report
After submission, your report will be analyzed. The manager and finance team check the legitimacy of your report and analyze whether the report is prepared according to the company’s Travel and Expense policy. If your report complies with the T&E of the company then it will approve.
4. Expense reimbursement
After the approval of the expense report, you will get your expense reimbursement.
The process of being reimbursed can be long and time taking but if your company uses an automated travel and expense management tool then you will be quickly reimbursed.
What are the types of Expense reimbursement?
Expense reimbursement is divided into following types:
• Business travel expense
If you experience expenses during a business trip and incur your cost then you can claim Expense reimbursement after the trip. You need to create and submit an expense report, wait for the approval then you will be reimbursed.
• Customer’s entertainment
If you arrange a meal for your customer on the behalf of the organization to build strong relations with customers or buy some gifts then you can claim Expense reimbursement.