When your employees put the money from their own pocket up for business expenses, they are essentially saying they are willing to invest in your company and that they trust you to deliver a fair return. However, if your expense claims process takes a long time and your employees do not see their reimbursements for weeks–even months, that trust begins to erode and so does employee job satisfaction. So if your company takes a little while to reimburse your employees you may want to consider streamlining your operations in order to give them a quicker return.
Have A Clear Reimbursement Policy
When creating your company’s expense policies, make sure to have a very clear process outlined for the reimbursement of out of pocket costs. A lot of extra time is spent negotiating with employees about what expense claims are business and what are personal. This is a waste of everyone’s time and can be avoided with clear guidelines about reimbursement. If your employees know exactly what they are allowed to claim, then you can cut back on the time-consuming approval process.
Next you should implement a deadline schedule for your accounting department for a reasonable turnover of reimbursements. The deadline should be integrated right into your company’s expense policy, so that everyone has clear expectations of when they can expect a return on their expense claims. If employees know when they are going to get their reimbursement, they can better manage their own personal budgets, which cuts down on a lot of the frustration.
Automate The Process
Automating the expense claims process is probably the best way to achieve rapid reimbursement. With automation through expense management software, cloud computing, and smartphone apps, you can eliminate a lot of the costly processes of reimbursement. With automated expense claims your employees can enter their expenses in real time, upload images of receipts, and track their mileage. All of this information is immediately sent to management for ease of approval and accounting for workflow processing.
Both your employees and your accounting department can benefit from rapid reimbursement for expense claims. Streamlining the process with clear expense reporting policy and full automation, will make everyone happier. Employees will see their money faster which will make them happier, your accounting team will spend less time on administrative tasks so they’ll be happier, and you’ll be happier because your employees are happy.