Expenses are part and parcel of running an enterprise. They can include anything from salaries, rent, legal fees, advertising, and equipment. Not all of these costs are reimbursable.

However, there are circumstances when a company will reimburse an employee for expenses, frequently under specific guidelines.

What are reimbursable expenses?

Reimbursable expenses are any expenditures incurred while carrying out work-related tasks. Here are some examples:.

1. Travel & Transportation

Many businesses will pay for their employees’ travel expenses. This may include airfare, accommodation, taxi, car hire, fuel, and other related costs. However, this expense only usually applies to work-related travel.

For example, a sales rep that has to fly to another city to meet a client.

2. Professional subscriptions

Professional subscriptions include licenses, subscriptions, and memberships utilized to conduct work-related tasks. For example, a lawyer that has to subscribe to a particular legal research database.

3. Training & Development

An employee might attend training and development courses to improve their work-related skills. This could include courses, certificates, books, and conferences along with other relevant expenses needed while attending the course.

4. Office Supplies and Equipment

Office equipment and supplies required to conduct work are reimbursable expenses. Examples include computers, phones, tablets, printer ink and paper, and others.

5. Entertainment

Entertainment expenses could include taking clients out for dinner or hosting a team activity. Such expenses must have strict guidelines, including the number of attendees and maximum amount of money that can be spent.

Additionally, the entertainment expenses must be directly related to work. These expenses may also require approval by management before they can be reimbursed.

6. Telephone and Internet Bills

Since many job roles require communication with clients via phone, companies may reimburse employees for phone and internet bills. However, this depends on the role of an employee and whether they are expected to stay in contact with clients.

7. Medical Expenses

Companies often reimburse employees for expenses related to medical treatment. In most cases, these expenses cover treatment of work-related illnesses or injuries. In some instances, the firm can even provide additional health insurance coverage.

However, all cases usually have to be documented thoroughly.

Many businesses reimburse employees for the cost of business meals, e.g. dining with clients, as previously discussed. However, proof of attendance and purpose must be kept in paperwork.

9. Home Office Set-up

With more employees working remotely at home, businesses may reimburse employees for home office costs. These expenses may include internet, phone, desk chair, etc.

Conclusion

Although not all enterprise expenses are reimbursable, there are instances when companies reimburse employees. There must be specific guidelines to adhere to and documentation to support the requests.

Expenses are part of doing business, and while it’s prudent for employees to keep their expenses in check, the company should be open to reimbursing them where applicable.