Employees can charge for purchases that help them get their jobs done. Each company has its policy regarding expense reporting and what can be claimed. Under this policy, companies generally reimburse all reasonable business expenses incurred from work performed by employees for their employers. But when an employee purchases something for non-business purposes and recovers the cost from the employer, it becomes an asset. Moreover, it counts as compensation and is taxable to the employee.
Nowadays, you can experience the benefit of a claims process built into your operating account. Most importantly, you can claim your disbursements with a single click and delight your teams because it appreciates not having to wait until the end of the month to get reimbursed.
How will companies reimburse the out-of-pocket costs of billing?
- An easy solution for billing cardless purchases seamlessly tagged on your budget.
- Configure and customize the approval matrix to meet your organization’s needs and transaction size.
- Employees can easily claim a tax deduction and submit receipts through an online expense management platform.
- Review, approve, and pay claims from a single dashboard. Sync everything, including receipt photos, with your accounting integration.
How do I sync all my expenses with my accounting software?
- Close books twice as fast and reduce the risk of errors.
- Quickly identify transactions without receipts and request them with a single click.
- With the click of an icon, you can sync photos of card payments, employee bills, and receipts.
- Store all your business expenses and supporting documents using our online expense management platform as your central document repository.
Different types of expenses an employee can claim:
1. Arrivals and departures include accommodation, transportation, and parking fees. Employees can also request legal documents such as visas and medical bills if vaccinations are required. Travel expenses usually include meals and a per diem.
2. Companies may allow claims for business collateral or business entertainment. Guidelines for this vary widely. There may be real business needs for executives to entertain customers and prospects, such as purchasing event tickets or paying for meals and snacks during meetings. Some organizations may not allow claims for alcohol or certain types of entertainment.
3. Employees may need to purchase materials not provided directly by the company, like batteries, notebooks, flipcharts, and pens.
4. Employees are entitled to certain types of subscriptions, such as memberships in professional associations related to their work and subscriptions to trade publications.
5. Employees can charge for calls and related costs if they use their mobile phone or office for work.
If you want employees to submit expenses by a specific time or date, make that clear in your policy. Establish how and when they are approved, so managers understand their commitments. But an automated online expense system makes it easier for employees to submit expenses quickly and accurately. Businesses can also turn on auto-approval for low-value or generic items for instant refunds. The expense management system with a mobile app allows you to submit receipts instantly.
