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What is a reimbursement? #

A reimbursement is a payment made by a company to one of their employees to repay the employee for purchasing something out of their own pocket on behalf of the company. Typically reimbursements are only made in cases where the purchase was necessary for the employee to perform their job, or where the company and employee previously agreed that the costs would be reimbursed.

Common examples include purchases of small items on an ad hoc basis at a lumber or hardware store; meals or hotels if the employee is forced to travel; or tolls paid by the employee in cash as they travel to/from a jobsite. Most companies will require reasonable documentation demonstrating that the reimbursement request matches the expense; employees should be prepared to present receipts or pictures of receipts to justify the reimbursement request.

Also known as: Pay back

Example of a reimbursement process #

A tradesman on a jobsite discovers that he’s missing some important fasteners needed to complete a job. He makes a quick run to a local hardware store and pays for them in cash, making sure to hold on to the receipt.

At the end of the day, he submits a reimbursement request to the office noting the value of the purchase, the job it was for, and other info; he also includes a picture of the receipt.

The office reviews the request and approves it, then sends the employee a check (or includes it in their next paycheck).

Reimbursement management in Knowify #

Knowify offers reimbursement requests from both the main web application and from the mobile (phone-based) application, ensuring that your employees can quickly and easily submit their requests along with any associated backup. We also help owners and office managers track and review outstanding reimbursement requests. This feature is particularly important for contracting companies with significant amounts of travel—for example, cell tower contractors.

See how it works: