Waiting for reimbursement for job-related expenditures is one of the most annoying aspects for any employee. It is a daunting and time-consuming task for the management as well.
Your accounting team takes days and weeks to streamline and reconcile expense reimbursements. Meanwhile, your company staff keeps racing with time to submit the required documents. And the waiting period for employee reimbursement becomes short. So, both employees and employers need help.
However, when you do it correctly, employee reimbursement will be smooth and convenient. There are a few smart strategies that will help you to overcome all these obstacles. Please read The blog to learn about it.
Recognize reimbursement expenses
Employees are legally entitled to full reimbursement from the company when they incur expenses on the company’s behalf and pay for them out of pocket. However, employees are not permitted to request refunds for every payment.
Rather, only purchases with a distinct business purpose are eligible for reimbursement. Employees are much less likely to submit unnecessary reimbursement requests if you establish clear guidelines for what qualifies and doesn’t qualify as a reimbursable expenditure.
Here are some typical areas of reimbursable expenses:
- Travel and lodging
- Meals and coffee bills during the business tour and client meetups
- Medical reimbursement
Execute a practical reimbursement policy.
You can prevent excess employee claims that are outside of the reimbursement policy when employees are well known about the reimbursement policy of the organization and follow it. Employee credit card is as necessary as prioritizing employee reimbursement policies.
As the first step, make sure your policy is exhaustive. Organize a company-wide brainstorming session that involves numerous stakeholders from the HR, finance, legal, and procurement teams.
As a result, it will be simpler to draft the policy because you will be able to incorporate their perspectives and experiences, ensuring that the priorities and objectives you establish for the procedure are the best points from the start. This makes it easy for the finance team to process reimbursements more quickly.
Use mobile app
Employees could also file claims through the mobile application at any time and from any location. They can submit all of their reimbursement requests that happened before a work trip or corporate event. Finance managers and those working in the CFO office can also quickly approve the reimbursement requests filed by employees while on the go.
Receipt submission should be easy.
Receipts, as previously mentioned, are a major source of frustration for most employees when they submit reimbursement requests. Your employees can handle their receipts easily when they can quickly click a snap of their receipts with their smartphones thanks to a robust payables dashboard and mobile app.
This way, employees and approvers can also have visibility over their reimbursements’ status and whether they have been approved and paid out accordingly.
Pay the employees directly into their bank account.
This can cut out extra steps and streamline the employee reimbursement procedure by transferring the reimbursed funds right to the employee’s bank account.
Additionally, you can step in to automate this direct-funds-transfer process, requiring workers to enter their bank account information just once to initiate automated reimbursements.
This significantly reduces redundancies and frees time for employees and the finance teams, allowing them to concentrate on their remaining duties! It also offers a different method for workers to track and keep track of the progress of their reimbursements in real-time.