Reimbursement is money received in form of cash for repayment of expenses made by an individual or a group of individuals on behalf of an entity. Such an entity is often related to business houses that repay their employees for paying out of their pockets for expenses related to business travel, food, accommodation, fare, etc.
Invariably, reimbursement is nothing but the money that you get by spending on someone else which was in ideal case to be borne by the person repaying you. The repayment of expenses may not necessarily be in cash but can be in any other form like a cheque, online transaction, bank transfer, etc. The word reimbursement in itself implies paying money to the individual who has spent it for someone else’s benefit without his/her sole interest.
When it comes to business houses following are some common types of reimbursements that companies pay for-
- Transport- This includes travel expenses incurred for local or international travel via any suited means of travel by the company.
- Accommodation- The expenses incurred while staying in a space for business meetings or to carry out any other operation for the business.
- Meal Expenses- The expenses made by the employee for eating during business hours or during business travel.
- Miscellaneous expenses- This includes everything apart from the above like cost incurred while working for the company i.e business calls, internet charges, purchases like a laptop or even as simple as a book or a pen, etc.
Such expenses are usually reimbursed and taken care of by the human resources of the company.