If you are a regular business traveler then this article is for you. In this article, we will discuss “Expense Reimbursement Claim.” So, read this article if you are looking for an efficient way for an Expense Reimbursement Claim.
It is tedious for workers to ensure that all the receipts are attached to the expense report and the expense report is completed and submitted on time so, they will get their expense reimbursement as soon as possible. If you want to set up an efficient Expense Reimbursement Claim system for your organization then I am going to mention all you need for an efficient Expense Reimbursement Claim for your organization.
What is an Expense Reimbursement Claim?
When workers travel for work or go on any business travel, they file their expenses as Expense Reimbursement Claims. They spend their own money on the behalf of the organization and then claim reimbursement after completing their business trip. They make an expense report for reimbursement claims.
Sometimes, the expenses for which workers claim reimbursement is associated with business travel but this is not the only case. Sometimes they spend their money on office accessories, meals with customers for better interaction, gifts for customers, and much more so, all the situations when workers spend their money, they can claim reimbursement.
The reimbursement process is not too complex but an inefficient system can make it complex. The process may be time taking and effort taking for workers until your company has a clear reimbursement policy.
What is the process for an Expense Reimbursement Claim?
The Expense Reimbursement Claim process is mentioned below:
1. Expense Reports
First, for claiming reimbursement, workers need to make expense reports that include all the information related to their expenses like receipts, the date and day on which they spend their expenses, and much more. Expense report contains an entire summary of expenses that workers spend during business travel or other situations when they spend money on behalf of the company.
Workers make an expense report according to the travel and expense policy of their company. It serves a good purpose for both workers and the finance team. The expense report should contain the following things:
- Worker’s employment detail like name, worker ID, and department
- Select the expense category
- Mentioned the date and day on which they incur the expense
- Payment receipts
- Total expense
After making the reports, workers submitted their expense reports for approval to the managers or suitable departments. Commonly, the HR department accepts such reports but the confirmation, analysis, and the manager or finance team do approval.
Once worker file the expense reimbursement report then they submitted it for approval.
3. Reimbursement claim payment or rejection
After submitting the expense report, workers have to wait for the approval. It is up to the finance team to accept or reject the report. After approval of the expense report, the finance team will reimburse the workers.
How workers receive, the reimbursement relies on the travel and expense policy of the organization. Commonly, the finance team contacts with manager and worker, if there are clarifications in the expense report. It can be time taking.
What are the types of Expense Reimbursement Claims?
Some of the categories that are valid for reimbursement claims are mentioned below:
1. Travel Expense
When employees spend their money on business travel then they can claim reimbursement later. Travel expenses are all the expenses associated with business travel such as airfare, traveling tickets, meals, hotel stay, and everything for which workers spend for business travel.
2. Medical Expenses
Companies should always prioritize workers’ health. Health insurances fill all health-related needs. All organizations have healthcare policies. Medical expense reimbursement will be successful if it came in the category of reimbursement and obey the healthcare policy set by the organization.
3. Other Business Expense
Commonly, reimbursement claims are for traveling but it does not only the case for reimbursement. Anything on workers spends on behalf of the organization can come in the category of reimbursement if they obey the expense policy set by the organization. Such as if workers pay for office equipment, gift for customers, meals at events, and much more, they can claim for reimbursing.
An automated travel or expense management system can make the Expense Reimbursement Claim process efficient and gives a good experience to workers. If you are looking for an automated travel and expense management solution for your organization then you can consider “Happay travel and expense management software.”