Understanding Reimbursable Expenses: Key Categories
Reimbursable expenses are essential for accurate financial management and compliance within a business. Typical categories include travel-related costs, such as fuel, tolls, and repairs for company vehicles, as well as client entertainment expenses. In fact, travel expenses alone can account for a significant portion of a business's operational costs. For instance, the IRS mileage rate for business travel increased to 72.5 cents per mile in 2026, highlighting the need for precise tracking.
Harvest assists businesses by providing customizable expense categories, ensuring that all relevant expenses are captured accurately. This capability allows for better budgeting and financial control, reducing the risk of errors and fraud, which can cost companies up to 5% of their annual revenue. By distinguishing between reimbursable and non-reimbursable expenses, Harvest aids in maintaining clear financial records, crucial for audits and compliance.