One of the most unpleasant things for any employee is having to wait for reimbursement for expenses linked to their employment. The management also finds it to be a difficult and time-consuming task.
The process of streamlining and reconciling expenditure reimbursements takes days and weeks for your accounting team. In the meantime, your employees are rushing to turn in the necessary paperwork. Additionally, there is a shorter wait time for employee reimbursement. Thus, assistance is required for both employers and employees.
Employee reimbursement, however, will be easy and convenient if you do it right. You can get beyond all of these challenges with the aid of a few clever tactics. To understand more about it, please read the blog.
Acknowledge the costs of reimbursement
When employees incur costs on the company’s behalf and pay for them out of pocket, they are legally entitled to full repayment from the business. Employees are not allowed to ask for refunds for each payment, though.
Instead, reimbursement is only available for goods that have a clear commercial purpose. If you clearly define what constitutes a reimbursable expense and what does not, employees are far less likely to submit needless reimbursement requests.
Typical areas of reimbursable expenses include the following:
- Accommodations and travel
- Bills for coffee and meals during client meetings and the business tour
- Payment for medical services
Implement a sensible reimbursement policy.
When employees are aware of and adhere to the organization’s reimbursement policy, you can avoid excessive employee claims that do not fall under it. Prioritizing employee reimbursement procedures is just as important as having an employee credit card.
Make sure your policy is comprehensive as a first step. Plan a brainstorming session for the entire organization that includes a large number of participants from the procurement, legal, finance, and human resources departments.
It will therefore be easier to create the policy as you will be able to take into account their viewpoints and experiences, making sure that the procedure’s priorities and goals are optimal from the outset. The finance team can handle reimbursements more swiftly as a result.
Utilize a mobile application
Additionally, workers may use the mobile application to submit claims from anywhere at any time. They are able to submit all of their reimbursement requests prior to a company function or work travel. Employee reimbursement claims submitted while on the go can also be promptly approved by finance managers and CFO office staff.
Submitting a receipt should be simple.
As was already indicated, when most employees file reimbursement requests, receipts are a big source of frustration. Thanks to a powerful payables dashboard and mobile app, your staff can manage their receipts with ease when they can snap a fast picture of them with their smartphones.
In this manner, both approvers and employees may see the status of their reimbursements and determine whether they have been authorized and disbursed appropriately.
Employees should be paid straight into their bank accounts.
By moving the reimbursed monies directly to the employee’s bank account, this can eliminate unnecessary processes and expedite the employee reimbursement process.
You can also intervene to automate this direct-funds-transfer procedure, requiring employees to only input their bank account details once in order to start automated reimbursements.
Employees and the financial teams can focus on their remaining responsibilities as a result of the large reduction in redundancy and time savings! Additionally, it provides an alternative way for employees to monitor the status of their reimbursements in real time.
