Establishing an efficient expense note reimbursement programme can be a challenge in itself, as if not properly organised, expense management can become a burden for the company.
Therefore, it is essential to implement a clear policy to ensure a smooth and proper process. Manage the reimbursement of expense notes and clearly define which expenses are eligible for reimbursement and which are not, through an expense policy.
What are reimbursable expenses?
Reimbursable expenses are those that the company must pay on behalf of its employees, and while company cards are a good option, certain types of corporate expenses related to business travel always require a reimbursement process, such as per diems, subsistence, mileage and other ad hoc purchases that employees make on behalf of the company.
What types of expenses are reimbursable?
The eligibility of reimbursable expenses depends on the company and the applicable reimbursement and tax legislation. Each company must make a decision as to which expenses it considers reimbursable, always within the legal framework and taking into account the impact on employee satisfaction and well-being.
In Spain, for example, with regard to mileage expenses, there is no specific regulation on the price per kilometre, so companies are free to decide the amount to be paid per kilometre travelled. Another common type of reimbursable expenses is per diem expenses, which includes lunches and dinners in restaurants during a business trip.
In addition, some other common categories of reimbursable expenses include accommodation expenses, team teambuilding and entertainment activities, as well as representation to clients.
How to set up an expense note reimbursement programme?
Managing expense claims can be complicated and time-consuming for all parties involved. Therefore, it is essential to have a clear expense policy that enhances expense control and tracking, along with an expense reimbursement programme to ensure that employees are aware of the rules during business travel.
Implementing an efficient process for expense note reimbursement involves developing an expense reimbursement policy, submitting expense notes to the accounting department, monitoring, validating and managing the reimbursement of expenses where possible.
It is essential to establish deadlines for expense reporting and define methods and timeframes for reimbursement. Also, document and enforce the expense policy in a clear and specific manner by communicating to employees through accessible channels such as internal communication tools and ensuring compliance.
In short, having an effective expense reimbursement policy ensures control of company expenses and prevents fraud, which can save the company money.
How XPENDOR can help you with expense reimbursements
XPENDOR is expense management software that gives financial teams peace of mind by recording, approving and processing all expenses according to the needs of the business and in compliance with the company’s established policy.
Why XPENDOR? It is an easy to use, comprehensive in functionality and affordable tool that ensures secure and efficient management by assisting in the management of expense note reimbursement. It also facilitates a real-time process that allows employees to focus on their work.
Thanks to our convenient and easy-to-use mobile app, employees just need to take a photo of the receipts or invoices and they’re done. Our OCR system automatically extracts the data, eliminating the need for manual input. XPENDOR helps reduce the risk of human error and, as a result, increases the company’s financial security.