Expense reimbursement: 5 tips to do it right

Expense reimbursement: 5 tips to do it right

Developing transparent and fair management with employees is essential to maintain harmony and team engagement in the corporate environment. For those who incur expenses during the exercise of their work, it is worth ensuring their full right to reimbursement of expenses.

A policy that contemplates this type of payment to the employee, in addition to acting in accordance with the law, directly contributes to greater commitment during the performance of activities related to the company. If you want to know how to create a good refund policy in your company, read on and check out our recommendations!

What is an expense reimbursement?

Reimbursement is usually a process that involves the financial department of the corporation, allowing the individual who had an expense during the performance of some company activity, to receive that amount back.

Therefore, after making an expense that is closely linked to work, this individual can use the voucher to later be reimbursed by the corporation.

Business trips, external meetings, visits to customers and other activities carried out outside the company’s premises, normally produce expenses that must be covered by the corporation. The most common are the costs related to food, accommodation, transportation, internet access and other communication resources.

How to reimburse expenses correctly?

Having a simple and clear expense reimbursement policy saves your company a lot . Furthermore, it is necessary to make everyone aware of how this process works. Thus, you avoid confusion and gain efficiency. Do you want to learn tips to optimize such a procedure? So read on and check it out below!

1. Define what is refundable

The first step to correctly and efficiently reimburse expenses in your business is to define what is reimbursable. That way, when a contributor makes the request, you’re clear on what is plausible and what isn’t.

In addition, the employees themselves are already aware of what is allowed to claim reimbursement. Thus, when they travel on business, they can make a request within what has been determined.

So have a list of all refundable items. In addition, separate them by categories to make it easier for everyone to understand. This has the potential to make the process more correct and optimized.

2. Collect receipts

In order to ensure that reimbursement is carried out correctly and honestly, it is important to collect proof of expenses that must be reimbursed. Through this document, you prove that the expenses were made and that they are in the reimbursable categories.

In addition, it guarantees more security and has more reliability throughout the process. It also increases financial control and knows where your company’s resources are going.

Therefore, it is essential to demand refundable vouchers. There is also a need for storage, to prevent labor liabilities from arising and to ensure that the company is safe on all fronts.

3. Enter the expenses in the system

After collecting the receipts, it is time to launch them in the system. This gives you more control over what is refunded and when. This information can enter the business cash flow .

It is also possible to create categories in order to understand which are the highest expenses with refundable items. Thus, you can draw up a plan to adjust and reduce your business costs.

Another good tip that can be used at this stage is to scan the documents. Create standard nomenclatures to archive and leave everything in a cloud system. With this, you ensure preservation and guarantee agility in searches.

4. Draw up a receipt

Because it involves money, it is important to make a receipt for the reimbursement and collect the signature of the employee who requested it. This represents a good form of control, in addition to guaranteeing legal certainty in case of labor lawsuits.

By making this receipt and making clear everything that was refunded, you have proof that the money was returned and that your organization does not owe the employee anything. So it’s worth taking the time to make such a document.

It can be done simply. In addition, it is possible to leave a pattern with editable fields ready on the computer. Thus, in situations of need, it is enough to fill them in, collect the signatures, enter them in the system and file them.

5. Make everything transparent

It is essential to have clarity and transparency to reimburse expenses. This process, as it involves the financial sector , has the potential to generate headaches for you. Thus, ensuring that all information is clear and accessible is essential.

In this sense, it is feasible to draw up a reimbursement policy and ask all employees to be aware of it, whether they are newcomers or with some time at the firm. In addition, it is necessary to be clear in the information written and ensure that they are strictly complied with to avoid problems in your business.

Through a transparent and well-established process, refunds tend to be trouble-free for your business. Therefore, it is worth investing in this type of policy to ensure peace of mind.

What are the benefits of making this reimbursement of expenses?

By creating a clear, simple and transparent policy for reimbursement, your company is able to determine exactly which protocols are necessary to carry out the transfer of amounts owed to employees.

Through this strategy, your team is able to focus more on the activities to be carried out than on financial issues, for example. This means that the corporation can offer a service with more quality, performance and practicality for its customers.

In addition, employee satisfaction is ensured through a fair reimbursement policy. After all, when everyone knows exactly what can or cannot be reimbursed, there are no confusions and disagreements between the individual and the corporation.

Have you seen how important it is to take some precautions regarding the reimbursement of expenses? By developing a simple protocol for your team, you ensure that the company’s money is being optimally spent, without causing harm to any member of your team.

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