Reimbursable Expense
What is a Reimbursable Expense?
A Reimbursable Expense refers to any business-related cost paid out-of-pocket by an employee and later reimbursed by the employer. These expenses are usually incurred during business travel, client meetings, or work-related activities.
Companies outline expense reimbursement policies to define which expenses qualify, the reimbursement limits, and the required documentation, such as receipts and approval forms. To streamline the process, many organizations use expense management software that allows employees to submit receipts and track reimbursements efficiently.
By ensuring compliance with corporate travel policies, businesses can control costs while supporting employees with necessary business-related expenses.
Examples Of Reimbursable Expenses
1.
Flight For Client Meeting
A Sales Executive Books A Flight For A Client Meeting And Submits The Receipt For Reimbursement.
2.
Taxi To Conference
An Employee Pays For A Taxi From The Airport To A Conference Venue And Logs The Expense In The Company’S Expense Reporting System.
3.
Work-Related Software Subscription
A Consultant Purchases A Work-Related Software Subscription That Is Pre-Approved For Reimbursement By The Company.
Frequently Asked Questions About Reimbursable Expense
1.
What types of expenses are typically reimbursable?
Common reimbursable expenses include transportation, airfare, hotel stays, meals, conference fees, and business-related supplies.
2.
How do employees get reimbursed for expenses?
Employees submit receipts and documentation through an expense reporting system, and after approval, the company reimburses the amount via payroll or direct deposit.
3.
Are personal expenses ever reimbursable?
No, personal expenses are not reimbursable unless they serve a valid business purpose and are approved under company policy.
4.
What happens if an employee submits an expense without a receipt?
Many companies require receipts for reimbursement, but in some cases, a signed statement or alternative proof of payment may be accepted.
5.
How long does it take to receive a reimbursement?
Reimbursement times vary by company, but most organizations process expense claims within one to four weeks after approval.