Sample Finance Procedure: Expense Reimbursement

This document outlines the standard procedure for employees seeking reimbursement for business-related expenses incurred while performing their duties. Adherence to this procedure ensures accurate tracking, proper authorization, and timely reimbursement.

1. Eligible Expenses

Reimbursable expenses typically include travel costs (transportation, lodging, meals), client entertainment, professional development (conferences, training), office supplies (if not provided), and other pre-approved expenses directly related to company business. Personal expenses, non-business related travel, and expenses exceeding pre-approved budgets are generally not reimbursable.

2. Pre-Approval Requirements

Certain expense types, particularly those exceeding a specified threshold (e.g., travel exceeding $500, client entertainment exceeding $200), require pre-approval from the employee’s manager or department head. A written request outlining the purpose, estimated cost, and business justification for the expense must be submitted and approved prior to incurring the expense. This pre-approval must be retained and submitted with the expense report.

3. Documentation Requirements

Every expense must be supported by original receipts or invoices. Credit card statements are generally insufficient unless accompanied by itemized receipts. Receipts must clearly show the vendor name, date of purchase, items purchased, and amount paid. For travel expenses, boarding passes and itinerary details are also required. If a receipt is lost, a written explanation, including the date, amount, and nature of the expense, must be provided and may be subject to approval on a case-by-case basis.

4. Expense Report Submission

Employees must submit an expense report, typically using a company-provided template or software, within [Number] days of incurring the expense. The expense report must include the following information:

• Employee name and department
• Reporting period (start and end date)
• Date of expense
• Description of expense
• Vendor name
• Amount of expense
• Currency (if other than company’s standard currency)
• Project code (if applicable)
• Attach all supporting documentation (receipts, pre-approval forms, etc.)

5. Review and Approval Process

Submitted expense reports are reviewed by the employee’s manager for accuracy, completeness, and adherence to company policy. The manager will approve or reject the expense report, providing reasons for any rejection. Approved expense reports are then forwarded to the finance department for processing and payment.

6. Reimbursement Method

Reimbursements are typically processed via direct deposit to the employee’s designated bank account. The finance department will process approved expense reports within [Number] business days and notify the employee when the reimbursement has been issued. Alternative reimbursement methods may be available upon request and subject to approval.

7. Policy Compliance

Failure to comply with this expense reimbursement procedure may result in delayed reimbursement, rejection of the expense report, or disciplinary action. Employees are responsible for understanding and adhering to this policy. The finance department is available to answer any questions regarding this procedure.