What is an expense reimbursement policy?

An expense reimbursement policy is a company's established procedure to refund employees for expenditures they've made on behalf of the company. These expenses may include travel, meals, or office supplies, and they're typically incurred while the employee is performing job-related duties.

A good expense reimbursement policy provides clear guidelines about what expenses are reimbursable, the process for getting reimbursements, and any spending limits. Such policies are crucial to prevent misunderstandings, ensure fair treatment, and maintain financial control within the company.