The term reimbursed expenses might be common to hear. Especially for employees who often use their own money for the company’s purposes. To simply put, reimburse is a repaying system as a form of compensation for the employees. One thing for sure, every business owner has its own regulations to control the reimbursement system.
Curious to find out more? In this article, Clockster will define what reimbursements and several tips to claim it. Check out the information below!
What is reimbursements
When working in a company, there’s a possibility where you will spend your personal money for urgent necessities that involve your company or even yourself. However, it doesn’t mean that you will instantly lose the money you spent. The reimbursed expenses system is what you can propose to the company.
You can say that the definition of reimbursements is a process of repaying a compensation by the company to the workers who have fulfilled the claim’s terms and conditions, usually by handing the invoice. So, if you are planning to do reimbursement, don’t forget to follow your company’s provision, in order to speed up and ensure a smooth run on your reimbursed expenses process.
Things that Can be Reimbursed
Not all expenses can be repaid by the company. Some of the costs that can be reimbursed are:
If you spend any medical expenses such as medicine or treatment, usually your company will accept the reimbursement. However, in some cases, the company might already provide medical facilities such as insurance that you can use without having to do any reimbursements to the company.
Some examples of operational reimbursed expenses would be your phone credit that’s used to contact clients, office’s equipment expenses, rent a place, and others. You can claim them to your company. However, keep in mind to always give detailed evidence of the expenses.
Business travel expenses
As an employee, maybe you will be assigned to do business travel inside or outside the country. Of course, there will be costs such as for the fuel and accommodation. Those things regarding business travel can also be reimbursed as long as your company has not provided you travel allowances.
Tips to claim reimbursement
There are several points that you need to know before you do the reimbursement. Here are some tips to claim it.
Keep the payment proof
The first thing that you need to understand and make sure is to keep all the payment proof. Usually, companies will require their employees to always attach payment invoices and other documents.
Yes reimbursement is a repaying system, but if there’s no evidence then your reimbursement can’t be processed.
Take notes on the terms and conditions
Before submitting a reimbursement file, it would be better if the employees have fully understood all the provisions so you will know what kind of expenses that actually can be covered.
Ensure suitability of the data
When you’re about to process your reimbursement, make sure all the data is in accordance with the real document to prevent any confusion.
Submit it as soon as possible
Last, reimbursements are a process that can’t be done anytime. Generally, there will be a submission deadline and those who passed the time then the expenses can’t be repaid.
Fraud Indicators in Reimbursement
It’s not only a few when mischievous employees do fraud when submitting the reimbursement. With that, a company must pay attention to their employees’ activities regularly, especially those who are about to claim reimbursed expenses.
There are some of the indicators to make sure whether the employee is being honest or not. Here’s the list:
- Expenses that one has is much bigger than other employees who’re in the same position.
- Propose a reimbursement for things that are not related with the business or office’s needs.
- Do a markup or uplift the price in any expenses.
- Use a credit card to its limit.
Reimburse Management Tips in a Company
For a company, employee reimbursement is an important process where the business needs to ensure that all transactions related to the work can be administered and completed efficiently. As a preventional to frauds, here are some reimburse management that can be applied by the company:
Set policy for processes
First, it’s important for a company to set a clear payback policy to be easily understood by the employees. For example, the requirement, reimbursement time period, guidelines, and others. Also draw a clear line whether the employees need to have an approval before making any purchases under the company name.
Form a reimbursement system
According to the policy set, it is important for the company to make a reimbursement system such as whether they can propose it with a hardcopy or softcopy document.
Determine paying period
Next, announce clear information regarding the payback. Don’t forget to also give the payment evidence and information on how the company’s going to do it.
Set expenses legitimacy
Lastly, set a deadline for the submission and how long does the company need to do a review over the file submitted. So, the company can inform the employees if there’s any missing and incomplete documents or if it’s not in accordance with the company’s policy.
That’s all the explanation about reimbursed expenses from Clockster. Reimbursement is an important element to maintain the company’s economic stability. Therefore, it is necessary to have transparency in the management. Read other interesting articles regarding HR management, only on Clockster website!
Also read: What is Overtime Pay? Definition and How to Calculate It