Expense Reimbursement

Expense reimbursments are used when you're repaid for business expenses you've paid out-of-pocket. For freelancers, if a client reimburses you for an expense, it typically doesn't count as income.

What is expense reimbursement?

Expense reimbursement is the process of reimbursing employees for business-related expenses they have incurred on behalf of their company. These expenses can include travel expenses, meals, lodging, transportation, and other expenses that are necessary for conducting business.

Typically, employees are required to submit receipts or other documentation to support their expenses, and the company will review and approve the expenses before reimbursing the employee.

What are some common types of expenses that are reimbursed?

Some common types of expenses that are reimbursed include:

  • Travel expenses, such as airfare, rental cars, and hotel stays
  • Meals and entertainment expenses, such as meals with clients or business partners
  • Office supplies and equipment
  • Professional development expenses, such as conference fees and training courses
  • Transportation expenses, such as mileage or public transportation costs

How do companies typically handle expense reimbursement?

Companies typically have a formal expense reimbursement policy that outlines the process for submitting and approving expenses. This policy may include guidelines for what types of expenses are reimbursable, the documentation required to support expenses, and the timeline for submitting expenses.

Employees are typically required to submit their expenses through an online system or by submitting paper receipts and other documentation to their manager or the finance department. The company will review and approve the expenses, and then reimburse the employee either through direct deposit or by issuing a check.

What are some best practices for managing expense reimbursement?

Some best practices for managing expense reimbursement include:

  • Having a clear and concise expense reimbursement policy that is communicated to all employees
  • Providing training to employees on the expense reimbursement process and policy
  • Requiring employees to submit expenses in a timely manner
  • Reviewing expenses carefully to ensure they are legitimate and comply with company policy
  • Using technology to streamline the expense reimbursement process, such as an online system for submitting and approving expenses

What is Workmade?

WorkMade is an all-in-one banking and accounting app designed specifically for freelancers! WorkMade gives you access to: zero-fee business banking, automated bookkeeping, fast and easy invoicing, and quarterly tax estimations and payments.

About Workmade
An artistic photograph of a freelancer getting paid

The banking app that pays your taxes, finds write-offs and gets you paid fast.

Free to download. Sign up in 60 seconds.

Learn More

Do your thing.

It only takes 60s to

Get Started

Scan to download the app.