Reimbursement

Repaying an employee for personal funds spent on business needs. It's the final step of the expense process, where approved expenses submitted on an expense report are paid back to the traveller. Reimbursement timelines and methods vary by company but are usually tied to the payroll or accounts payable cycle.

The reimbursement process usually follows several steps: the employee submits an expense report, a manager approves it, the finance team checks it against policy and supporting documents, and the approved amount is paid — either through payroll or by a separate bank transfer. Companies set rules on what can be reimbursed, the documents required, submission deadlines and how foreign currency expenses are converted.

Slow reimbursement is a common source of frustration for business travellers, particularly when they have paid significant amounts out of pocket. It can also discourage employees from travelling or push them to cut corners. Reducing the amount employees need to pay themselves, and automating approval and checking, shortens the cycle and improves the travel experience. Many companies also track reimbursement times as a service indicator for their finance team.

Tumodo helps companies reduce the need for reimbursements. Flights, hotels, rail tickets, transfers and airport services booked on the platform are paid centrally by the company, so employees do not need to use their own money for the main costs of a trip. For remaining expenses, receipts can be scanned in the mobile app and daily allowances are calculated automatically, making the final expense report quicker to prepare and approve.