The Oxford Dictionary defines reimbursement as “the action of repaying someone who has spent or lost money.” In a working environment, reimbursement 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, reimbursement 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, the reimbursement account is linked to the employee’s salary account, and there are no minimum charges or interest rates.
Following are some of the reimbursements that are usually paid for: