As a business owner, it is crucial for you to set up a system to address your employees’ reimbursement claims, especially reimbursement claims surrounding business trips. Most reimbursement claims are made following a business trip. In order to set up a good reimbursement claim system, one must understand reimbursement claims. In this article, we have covered everything you need to know about reimbursement claims when it comes to business trips. But before we get into that, let us take a closer look at what a reimbursement claim is.
What Is a Reimbursement Claim?
A reimbursement claim is made by an employee when they take out money from their own pocket for a business-related expense. For example, when an employee pays for a flight ticket while on a business trip, they can make a reimbursement claim. They will be reimbursed for the amount they spend on the ticket. The process typically involves the employee submitting receipts, filling out a form online, and waiting for approval from the manager or the finance team. Now that we have understood what a reimbursement claim is, let’s understand what employees can be reimbursed for.
Not all expenses are created equal. Here’s what most companies typically allow under a travel reimbursement claim:
- Transportation – Flights, trains, taxis, ride-shares, car rentals, fuel (if using a personal car), and mileage.
- Accommodation – Hotel bookings, service charges, and sometimes early check-ins or late check-outs.
- Meals – Breakfast, lunch, dinner, and snacks (within a daily allowance or “per diem” cap).
- Business-related charges – Wi-Fi at hotels, local SIM cards, printing services, or entry to business events.
- Miscellaneous – Parking fees, toll charges, visas, and, in some cases, even laundry for longer trips.
Remember: if it’s not pre-approved or doesn’t directly correlate to the business trip, you do not have to reimburse the employee. For example, if the employee spends on a spa, your business doesn’t have to pay for it.
What should a reimbursement claim process look like:
Every company has its own process; you too can change the process depending on your company, but the general flow looks like this:
- Before the employee travels: Ensure that before the employee leaves for the trip, they are aware of the company’s travel and expense (T&E) policy. They should be aware of the per diem rates, approved booking platforms, and what documentation is expected.
- During the trip: While on the trip, ask your employee to save all the receipts. They could also click a photo of it and keep it all together. This makes your work easier as well.
- After they return, ask them to fill out the reimbursement claim form and attach digital copies of all receipts and trip-related documents like boarding passes or confirmation emails.
- Reimbursement claim process: The claim should first go to the manager, then finance. If everything checks out, the money is transferred to the employee’s account. If not, send them an email asking for clarification.
Common mistakes made by employees
Filing a reimbursement claim should be simple. But here’s where things often go wrong:
- Missing or illegible receipts
- Late submissions
- Expenses outside the policy (like alcohol or personal detours)
- Currency conversion errors (for international trips)
Ask your employees to use an expense-tracking app or to take a photo of the receipts the moment they get them to avoid any such errors.
As a business owner, here are some things you should keep in mind:
- A complicated or delayed reimbursement process erodes trust. Employees shouldn’t have to chase down their own money.
- Invest in automation. Set clear, flexible policies. And most importantly, reimburse quickly. A simple reimbursement claim process makes you look professional and people-focused.
- No one enjoys filling out forms after a trip. But when handled properly, the reimbursement claim process doesn’t have to be a dreaded chore.
- For employees, it means financial fairness. You did your job; now the company covers your costs. For companies, it shows professionalism, transparency, and care for the people who represent them on the road.
In short, getting this right is about more than money; it’s about respect.
Business travel is evolving, and so should the way businesses in Singapore handle its logistics. A smooth, timely reimbursement claim process ensures everyone focuses on what actually matters: work that moves the business forward.