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Expense Reimbursement

Definition

Paying back employees when they spend their own money on business needs. A fair system keeps everyone happy and records clear.

What to consider

  • Keep policies clear and accessible.
  • Review and update regularly.
  • Ensure all employees understand the guidelines.

Real world scenarios

  • A small firm distributes a handbook outlining what expenses are eligible for reimbursement.
  • An entrepreneur sets clear spending limits for travel and entertainment.
  • A company updates its expense policy annually to reflect new business needs.

Related terms

Growth Strategy
Cash Budgeting
Small Business Administration (SBA)
Business Plan
Business Overhead

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