Expense reimbursement

Expense reimbursement is money paid back to employees for out-of-pocket costs they incur while performing business activities. It ensures employees aren’t financially burdened by company-related expenses.

Expense reimbursement commonly occurs during business travel, where employees pay for accommodation, meals, and transportation.

Once employees pay for an item, they collect receipts and provide an expense report (often via an expense management tool). The manager reviews the report against company policies and approves or flags exceptions. The finance team then processes the claim and issues payment as a separate check, EFT, or addition to the next payroll cycle.