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      HomeProductsDocumentUnderstanding Reimbursement and Its Benefits for Employees

      Understanding Reimbursement and Its Benefits for Employees

      Usually, in fulfilling the tasks that the company gives, it requires us to spend personal money. As long as the money is used for the company’s benefit, employees can make reimbursement. In this situation, you can use HR Software to help manage claims and reimbursements online.

      But what is reimbursement? What should we do to make a reimbursement? And what are the benefits of reimbursement? See the following article for further explanation.


      What is Reimbursement?

      What is reimbursement? Reimbursement is compensation or refund of employees’ personal funds used for the company’s business interests. The one who provides the compensation is, of course, the company. Usually, this cost compensation is related to business travel, including hotel, food, ground transportation, and flight costs. Don’t forget; usually, employees will have different refund budgets according to their position and position. Simplify it by using the HRM Software by HashMicro.

      We need to know the policies that apply when we want to make a reimbursement. Because the company can reimburse not all the money that employees have personally spent. Of course, the company will replace the funds that employees spend because they must have proof of payment, invoices, etc.

      Types of Reimbursement

      Generally, there are several types of reimbursement. Here are the reviews:

      Reimbursement of transportation costs

      Employees are assigned to travel both within and outside the city. The money used in the trip is what gets reimbursed. Usually, the costs are in the form of airline tickets, hotel rentals, and other accommodations. We need to remember that the provisions on the compensation policy of each company are different.

      Health compensation costs (Medical)

      This type of company provides health facilities to its employees. It is usually in the form of health insurance, such as BPJS, and health benefits. Besides, if an employee has a work accident, it is also possible to apply for refund to the company.

      Reimbursement of business operations

      Finally, sometimes employees also have to spend operational funds that come from personal sources. Of course, you can apply for a reimbursement to replace these expenses. An example usually happens when discussing a client using a cellphone that costs credit, internet access, and many others.

      download skema harga software erp
      download skema harga software erp

      Applying Tips for Reimbursement

      Reimbursement has many benefits for employees. In filing a refund, there are several tips for employees who want to do it. Here are some reviews on tips for applying for a refund application:

      Prepare the required documents

      The main requirement is the completeness of the documents before making a reimbursement—documents in the form of invoices, proof of payment, and others. Don’t forget to keep the copy before applying for a refund application. Also, make sure the document is original and stored neatly so that it is easy to find. And also, you can manage the company’s documents by using the Document Management Software by HashMicro.

      Make it as soon as possible

      Companies usually take a long time to process applications from other employees. For that, do it as soon as possible if you want to reimburse the personal funds used. Because as discussed earlier, companies have different policies in the reimbursement process. Several companies set a time limit for applying for a refund.

      Understand the terms and procedures for submitting reimbursement

      Like the first point, there are several requirements to make a refund. If these conditions are not met, it will most likely not be able to submit it. Therefore, understand what conditions you need. So later, the refund application is successful, and the company will replace the personal funds.

      Check again what you want to submit

      Even though reimbursement has many benefits, we must be careful before applying for it. Because the personal data that is used and its nature has nothing to do with the company’s needs, it will be considered a fraud. Therefore, it is essential to double-check the funds we want to reimburse before submitting them to the company.

      Recalculate the refund

      We need to recalculate the refund application that the company has approved. If the company has already paid it, try to recalculate the funds. We can ask the company back if, after submitting a reimbursement, there is a lack of funds.

      Use HashMicro’s Accounting Software for a more accurate and automatic recording of company financial flows.

      Read related article: What is Revenue? Definition, Type, and How to Calculate It

      Frauds in the Reimbursement Process

      Avoid scams such as:

      • Submit a claim for some form of proof of payment that is owned outside the company’s needs
      • Faking expenses or fabricating purchases to claim it.
      • Deliberately increasing the nominal expenditure from the actual value
      • Submit personal expenses as company expenses.
      • Maximizing the use of company credit cards
      • Primary Considerations that Become References in Assessing Fraud in the Reimbursement Process
      • Employee expenses are more significant than the expenses of other employees in the same position
      • Claim twice for the same expense
      • Submission of expense claims that are not related to the company
      • Rounding up expenses, maximizing credit card usage, and so on

      Don’t forget to use the Document Management Software by HashMicro to manage company documents digitally and centrally.

      Sample Reimbursement Form

      1. Example of an operational and transportation form

      Understanding Reimbursement and Its Benefits for Employees

      2. Example of a health form

      Understanding Reimbursement and Its Benefits for Employees


      That’s the discussion about a refund. In essence, it is compensation for the personal money we spend for the benefit of the company. We need to remember that in filing a refund application, there are several things that we need to pay attention to so that the company will approve the refund application that we have submitted.

      If your company needs software that can handle all HRM activities, don’t hesitate to contact us. HashMicro provides the best HRIS Software that manages HR processing, from payroll to reimbursement. Click here to try the demo or directly register and cooperate with our company.


      Chandra Natsir
      Chandra Natsir
      A content writer with a strong interest in writing and technology. Chandra is dedicated to writing useful, entertaining, and relevant information for readers, and he continues to develop content that connects and inspires them.

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