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Expense Reimbursement

Harvest simplifies the expense reimbursement process, reducing errors and manual labor by allowing seamless tracking and categorization of business expenses.

EXPENSE REPORT DRAFT

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Understanding Expense Reimbursement

Expense reimbursement is a critical process in which employers repay employees for out-of-pocket business expenses incurred during work activities. This practice is essential for maintaining accurate financial records, controlling costs, and fostering employee trust. However, it can be fraught with challenges, such as errors and inefficiencies. Approximately 19% of expense reports contain errors or missing information, leading companies to spend nearly 3,000 hours annually correcting these mistakes. For a typical 200-person company, this equates to about 330 hours per year dedicated to manual expense report processing.

To streamline these processes, many companies are shifting to digital and mobile solutions. In 2021, mobile apps accounted for 54% of expense report submissions. Harvest facilitates this transition by offering a user-friendly platform that allows employees to track and categorize expenses efficiently, reducing manual errors and improving the overall reimbursement process.

What Qualifies for Expense Reimbursement?

Determining what expenses qualify for reimbursement is crucial for both compliance and employee satisfaction. Generally, reimbursable expenses include travel, meals, supplies, and training. However, the specifics can vary by industry. For example, in healthcare, non-compliance with reimbursement practices can result in severe penalties. Meanwhile, in tech and agency sectors, remote work expenses like internet and technology allowances have become standard. Notably, only 7% of companies currently reimburse utilities for remote work.

Harvest supports businesses by allowing administrators to create custom expense categories. This feature helps track reimbursable expenses across diverse industries, ensuring that all qualifying costs are accurately logged and managed. By providing a clear structure for expense categories, Harvest aids in maintaining compliance with industry-specific practices.

The Role of Documentation in Expense Reimbursement

Proper documentation is a cornerstone of the expense reimbursement process. Itemized receipts are crucial for verification and tax compliance, especially for expenses exceeding certain thresholds, such as $25. Timely submission of expenses is equally important, as some regions require reimbursement within 30 days of a valid claim. Harvest facilitates this by allowing receipt uploads directly through its platform, ensuring that all necessary documentation is stored and accessible.

Additionally, Harvest's mobile app encourages timely submission by making it easy for employees to capture and upload receipts on the go. This functionality not only enhances compliance but also reduces the likelihood of lost or damaged receipts, a common challenge in traditional reimbursement processes.

Streamlining Expense Reimbursement with Harvest

Streamlining the expense reimbursement process can lead to significant cost savings and productivity gains. For instance, automating expense management can reduce processing costs from $26 per report to less than $7. This automation can also save finance teams 5-10 hours per month on accounting and reconciliation tasks. Harvest supports these efficiencies by providing a straightforward platform for tracking and categorizing expenses, thus mitigating the burden of manual processes.

Though Harvest does not automate compliance or policy enforcement, it offers businesses the tools to manage project budgets effectively. By leveraging Harvest's capabilities, companies can ensure that expenses are tracked accurately and reimbursed promptly, enhancing both financial control and employee satisfaction.

Streamline Expense Reimbursement with Harvest

Discover how Harvest simplifies tracking and categorizing expenses for efficient and accurate reimbursements.

Harvest platform showing expense reimbursement features and categorization.

Expense Reimbursement FAQs

  • Expense reimbursement is the process where employers repay employees for business-related expenses incurred out of pocket. It ensures accurate financial tracking and fosters trust.

  • Reimbursable expenses typically include travel, meals, supplies, and training. Specifics vary by industry, with sectors like tech also covering remote work expenses.

  • Documentation is crucial for compliance and verification. Itemized receipts and timely submissions are essential to meet regulatory requirements and streamline processes.

  • Automation reduces processing costs significantly, from $26 to less than $7 per report, and saves finance teams 5-10 hours monthly on reconciliation tasks.

  • Harvest allows businesses to create custom expense categories, ensuring accurate tracking and management of reimbursable expenses across different industries.

  • Manual reporting can be error-prone, with about 19% of expense reports containing mistakes. It also consumes significant time, around 330 hours annually for a 200-person company.

  • Timely submission ensures compliance with regional laws, which may require reimbursement within specific timeframes, and helps maintain accurate financial records.

  • Harvest's mobile app enables employees to capture and upload receipts instantly, promoting timely submissions and reducing the likelihood of misplaced documentation.

  • Using Harvest can significantly lower expense processing costs and improve productivity by streamlining tracking and categorization of expenses.