The Oxford Dictionary defines reimbursement as “the action of repaying someone who has spent or lost money.” In a working environment, it is an action whereby the company or the business venture repays an employee or a group of employees for paying for certain expenses that were incurred by using their own money.
In simpler words, it can be understood as nothing but the paying back of money by the organization for incurring expenses that they were supposed to pay for primarily. The reimbursement or ‘paying back’ process is done in various forms such as cash, kind, bank transfer, NEFT, RTGS, etc.
A reimbursement account is an account where the employees are repaid for all the business-related expenses that have been incurred. Generally, this account is linked to the employee’s salary account, and there are no minimum charges or interest rates.
Following are some of the purposes for which it is usually paid for:
Here are certain types of reimbursement paid to an employee in the organization:
In organization the word reimbursement is used to gave money back to the employee who has spend for office related tasks.
Reimbursement is the amount that the employee will get only after they have spent it and can be claimed by some proof.
A reimbursable expense is an expense that a business incurs on behalf of the customer while conducting their business
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