A Simple Guide on How to Reimburse Employees for Expenses

For remote teams, small outlays for home office gear, travel, or client meals can lead to messy paper trails and slow reimbursements when a clear expense policy is lacking. This is especially true for companies with a global presence, including those operating in fast-growing hubs like Dubai. How do you handle mileage and per diem claims, manage receipts and company card use, submit clean expense reports, and stay on top of payroll tax and compliance without extra busy work? This piece provides practical steps for expense reimbursement, including setting rules and approval workflows, tracking expenses, managing petty cash, and auditing, all designed to ensure employees receive timely payments.

Cercli's global HR system ties these pieces together by centralising expense tracking, automating approvals, and linking reimbursements to payroll and local tax rules. You stop juggling spreadsheets and speed up payments.

What is Employee Expense Reimbursement?

Employee expense reimbursement is the process by which an organisation repays staff for legitimate work-related costs they paid for personally. 

Typical items include: 

• Travel expenses
• Accommodation
• Meals
• Client entertainment
• Supplies bought for a project

How does your team decide which costs count as allowable expenses?

Why a Clear Policy Matters for Your Team 

A clear expense policy sets the rules for submitting expense claims, approval workflow and reimbursement procedures. A strong policy is especially important for businesses operating internationally, including those in the UAE, where diverse teams and regulatory environments require clarity. 

It protects the business from budget drift and helps employees understand: 

• Receipts requirements
• Reimbursement timeline 
• Who pays when

Who signs off on exceptions in your policy?

The Risks and Key Stats on Expense Fraud 

Fraud can hide in expense claims when controls are weak. The Association of Certified Fraud Examiners found that 15 per cent of business fraud stems from reimbursements, with a median annual loss of $26,000 per case. 

These figures raise the question of which controls will reduce risk in your organisation.

Common Expense Categories You Should Define 

List the expense categories you will accept and the rules for each. 

These are the common categories:

• Travel expenses
• Mileage reimbursement
• Per diem allowances
• Client meals
• Conference fees
• Subscriptions 
• Petty cash 

Will you allow mileage logs instead of receipts for short trips?

How To Reimburse Employees For Expenses: A Step-by-Step Process

• An employee submits an expense report or reimbursement request, including receipts and expense categories.
• The manager checks the claim against the expense policy and approves or queries it via the approval workflow.
• The finance team verifies receipts and runs an expense audit where needed.
• Payment is issued through payroll, a separate bank transfer or a corporate card reconciliation.
• Records are kept for tax and audit purposes. Which step takes the longest in your current process?

Receipts and Documentation Rules That Work 

We require original VAT receipts or clear digital images, itemised bills for meals, and a signed mileage log for vehicle claims. Specify how long employees must keep records and what to do when a receipt is missing. 

Do you accept emailed receipts or only uploads via an app?

Timing and Payment Methods for Faster Reimbursement 

Establish a reimbursement timeline to inform staff when they can expect payment. Common options are payment within one payroll cycle or a separate weekly or monthly run. Use corporate cards where appropriate to reduce out-of-pocket spending and use petty cash for immediate small expenses. 

Which payment method suits field staff and which suits office staff?

Controls to Prevent Fraud and Enforce the Policy 

Use approval limits, segregation of duties, random expense audit samples and automated flags for duplicate or out-of-policy claims. Keep an audit trail for each expense report and require manager justification for unusual items. 

When did you last test your approval workflow for weaknesses?

Expense Management Tools That Speed Up Reimbursement 

Expense management software, mobile apps with OCR for receipts, and integrations with accounting and payroll systems speed up expense tracking and reduce manual errors. 

These tools support: 

• Expense categories
• Automated policy enforcement 
• Faster approvals

Do your systems link receipts to the ledger and payroll automatically?

How Reimbursement Practice Affects Trust and Behaviour 

When staff receive timely and consistent reimbursement, they accept business travel and client activity with less stress and better focus on work. Clear rules and fair enforcement build trust and reduce disputes over allowable expenses. 

How transparent is your communication of policy and process?

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8 Steps to Building an Effective Reimbursement Process

A clear, well-defined reimbursement process is vital for any modern business. 

It prevents: 

• Confusion
• Reduces financial risk
• Builds trust with employees

This is especially true for companies with a global presence, including in international hubs like Dubai and the UAE, where diverse teams require clear and consistent policies.

1. Determine Reimbursable Expenses 

Decide which costs the company will pay back and list them clearly. Make the policy explicit and detailed so employees know what to charge and what to avoid. Ask each department to submit the items they commonly need, then refine the list only to include expenses that cannot reasonably be put on a corporate card or charged to a company account.

Tax-Efficient Ways to Handle Travel Expenses

Travel typically generates the most out-of-pocket claims. Flights and hotels are often paid for using a company card, but define rules for: 

• Taxis
• Food
• Coffee
• Checked baggage
• Mileage 
• Per diem

Review expense data from recent business trips to capture recurring items. Include accountable plan rules whenever possible. A responsible plan meets tax rules, so reimbursements are not taxable. 

Require that:

• Expenses are business-related
• Expenses are reported promptly
• Any excess reimbursement is repaid to the employer

2. Create the Detailed List of Reimbursable Items 

Turn the decisions from step one into a single working list that finance and managers can follow. Break the list by job role, department, or expense type if that makes it clearer. 

Add: 

• Preferred vendors
• Maximum budgets 
• Any daily allowances where relevant

Clarify acceptable receipt formats and how to document mileage and per diem. This reduces ambiguity when staff submit expense claims and helps with audit trails for the finance team.

3. Set Up Non-Accountable Plan Expenses 

If you choose to offer allowances that staff use at their discretion, treat them as non-accountable plan payments. These are taxable and must be reported as income. Non-accountable plans are suitable where item-by-item proof is impractical and the company accepts the tax treatment.

‍Communicate taxable consequences to employees so they understand how an allowance affects take-home pay and tax withholding.

4. Outline the Pre-Approval Process 

Decide when purchases need approval and from whom. Set thresholds that trigger documented approval, and decide whether verbal sign-off is ever acceptable. Map the workflow between the employee, manager, and finance so each step is clear.

Ask managers to approve exceptions before spending occurs; that prevents disputes later and keeps expense management predictable.

5. Choose an Expense Reporting Process 

Define precisely how employees must record claims. List acceptable receipt formats and those which are not acceptable, such as:

• Photos of paper receipts
• Screenshots
• Emailed invoices
• Card statements

Require details on each entry: vendor, date, time, description and amount, so a total does not mislead reviewers.

Use expense reporting software where possible to auto-populate merchant, date and amount, and to send claims to approvers. That reduces manual data entry and improves expense tracking and reconciliation.

6. Create the Reporting Process and Set Submission Windows 

Work with finance to set a submission deadline and a route for sign-off. 

Decide whether: 

• Claims must use forms
• Which signatures are required
• How many approval layers are acceptable

Set an acceptable window for submissions, for example, within 30 days of the expense, and enforce it to keep accounting current. Make the approval route visible to all staff so expense claims move quickly and do not sit waiting for attention.

7. Choose Your Reimbursement Method and Timing 

Choose how finance will repay staff: bank transfer, cheque or add the amount to payroll. Each method has timing and cost implications. Consider the burden on employees who put company spending on personal cards; long reimbursement delays can cause financial stress.

Aim for a reimbursement timeline that returns funds within a few weeks and communicate expected turnaround times. Also consider corporate card options to reduce out-of-pocket exposure for staff.

8. Prepare for Disputes and Audits 

Define steps for: 

• Handling unapproved purchases
• Claims over budget
• Suspected misconduct

Identify the teams involved, including leadership, HR, and finance, and determine the necessary evidence before adjusting pay or denying a claim. 

Communicate the dispute resolution steps to employees in advance so they know the consequences and the appeals route. Establish an audit process and random checks to deter errors and dishonesty, and store documentation so auditors or tax authorities can verify the expense history.

Ensuring Compliance for Remote and International Teams

Cercli is designed for companies in the Middle East who need a flexible, compliant, and reliable way to manage their workforce, whether teams are local, remote, or spread across multiple countries. 

Want to see how Cercli works as a global HR system and supports WPS registrations, GOSI, DEWS, compliant contracts, multicurrency payroll and employer of record services?

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6 Best Practices to Simplify Reimbursements

A robust and efficient reimbursement process is crucial for any business to maintain financial control and employee trust. This is especially important for companies in key business hubs like Dubai and the UAE, where diverse teams and rapid growth require clear processes.

1. Make Expense Reporting Efficient for Everyone 

Implement a robust reimbursement process that sets a single clear route for employees to submit expense reports. Define required fields, acceptable receipt formats, deadlines, and preferred submission methods. Use online portals or mobile apps that support OCR, automated invoice matching, and duplicate detection. 

This allows submitted expenses to be compared against vendor invoices and reduces manual checks. 

Ensure the system lets employees: 

• Categorise expenses
• Attach receipts 
• Select currencies

Specify how to handle mileage reimbursement, per diem claims, and corporate card reconciliations. Who will be responsible for ongoing support of the submission channel, and how will you measure adoption?

2. Keep Your Expense Rules Up to Date and Practical 

Regularly review and update expense policies to ensure that daily practices align with current market rates and regulations. Set a review cadence, for example, quarterly or twice a year, and assign owners for each policy area, such as: 

• Travel expenses
• Meals 
• Mileage

Use spend analytics and employee feedback to spot weak spots in the reimbursement policy and revise limits, required documentation and exception rules. Include clear guidance on VAT treatment and tax compliance to ensure the business maintains accurate records for audits. Which metrics will trigger a policy revision?

3. Teach Employees How to Claim Expenses Efficiently 

For your expense software, provide clear communication and guidance for employees with concise resources: 

• FAQs
• A one-page quick guide
• Video demos 
• Step-by-step tutorials 

Run onboarding sessions for new starters and short refresher sessions for existing staff. Provide examples of correctly completed expense reports, along with common mistakes to avoid, such as poor receipt images or missing vendor names. Create a straightforward checklist for managers to use when reviewing claims. 

How will you gather ongoing feedback on the guidance?

4. Maintain Records for Quick Audits 

Keep accurate records and documentation by integrating digital storage with your expense reporting tool. Capture original receipts, vendor invoices, and timestamps, and index them with searchable metadata such as employee name, cost centre, and expense category. 

Define retention periods that meet tax and audit requirements, and implement access controls accordingly. Use automated backups and an audit trail that logs who viewed and approved each claim, allowing you to reconcile expense claims with accounting entries as needed. 

Which exports will auditors need most often?

5. Set Clear Approval Rules that Control Spend and Streamline Approvals 

Implement a strong approval process with an approval matrix that maps amounts and expense categories to the right approvers. Build automated workflows that route claims to managers, finance or a delegated approver based on predefined rules. 

Require receipts and written justification for exceptions and set escalation paths for delayed reviews. Reconcile corporate card charges and run spot checks to deter fraud. Keep a record of delegated authority so approvers know their spending limits and responsibilities. 

How often will you audit the approval matrix for accuracy?

6. Ensure Timely Payments to Build Trust 

Provide timely reimbursement and publish a service level for payment after approval, for example, five to ten working days. Connect your expense system to payroll or to a separate reimbursement run and provide multiple payment methods and clear notes about currency conversion and any taxable elements. 

Communicate reimbursement timelines and status updates in the expense portal so employees can track their claims. Monitor payment timeliness and address bottlenecks in the workflow when delays appear.

Modern Tools That Simplify the Process

A robust and efficient reimbursement process is crucial for any business to maintain financial control and employee trust. This is especially important for companies in key business hubs like Dubai and the UAE, where diverse teams and rapid growth require clear processes.

Why Manual Expense Reimbursement Harms Teams and Finances 

Manual expense processes slow teams, create errors, and frustrate staff. The Global Business Travel Association found that one in five expense reports contains missing information or errors. Furthermore, processing a single night’s hotel stay takes about 20 minutes, with errors adding nearly another 20 minutes. 

Paper receipts, emailed spreadsheets, and ad hoc approvals not only cost time but also delay reimbursements and complicate month-end for finance teams.

Which Modern Features Improve the Process? 

Modern platforms enable employees to submit claims from their phones, attach receipt photos, and track claim status in real time.

Look for: 

• Receipt capture
• Optical character recognition
• Automated categorisation
• Per diem and mileage calculators
• Configurable expense approval workflows

Those features reduce lost receipts, expedite approvals, and keep expense reports consistent with policy.

How Mobile Receipt Capture and Approvals Expedite Payments 

Snap a photo, automatically populate the amount and merchant, and route the claim to the right manager for approval. That replaces manual data entry and the need to chase receipts. Real-time push notifications and in-app approvals mean staff get paid faster and managers can approve on the move.

Which Tools You’ll See in Most Finance Stacks 

Expensify, Concur, Zoho Expense, and QuickBooks provide the core capabilities above. Each supports digital expense claims, receipt attachment, and export to accounting systems. They also differ in terms of user experience, policy controls, and the depth of analytics, so match the tool to your size and process complexity.

How Automation Helps Finance Teams and Auditors 

Automating approvals, flagging policy violations, and reconciling corporate cards reduces reconciliation work. Dashboards consolidate spend by category, project, or employee, making it easier to spot unusual activity and to prepare audit trails required for compliance.

How Integrations Shorten the Close Cycle 

Expense platforms that sync with your ledger or bookkeeping software eliminate the need for manual journal entries. That reduces errors, speeds up month-end, and makes project billing or client recharge cleaner. Look for direct connectors to your accounting package or reliable CSV exports when a connector is not available.

Which Controls Preserve Policy and Reduce Fraud 

Set: 

• Spending limits
• Require receipts above thresholds
• Use rules to auto-reject or flag non-compliant claims

Role-based access, two-step approvals for larger amounts, and detailed audit logs give finance teams defensive controls and a clear paper trail.

How to Reimburse Employees: Workflow Options You Can Use 

Decide whether to reimburse via payroll, bank transfer, or corporate card reconciliation. Each method has pros and cons for tax reporting and timing. Many organisations run reimbursements weekly or biweekly once claims clear approvals and reconciliations.

Measuring the Business Case and ROI 

Track processing time per claim, error rate, reimbursement speed, and the cost of manual approvals. A study by Emburse showed 46 per cent of companies achieved a positive return on investment within a year after moving to a cloud-based expense system. 

Use those benchmarks to estimate savings and set targets for adoption and compliance.

What to Consider When You Roll Out a New System for Remote Teams 

Train managers on approval rules and set clear expense policies in plain language. Pilot with a small group, collect feedback, and adjust categories and rules before wider rollout. Ensure employees know how to: 

• Submit receipts
• Check claim status
• Whom to contact for exceptions

How to Keep Employee Experience Simple and Fair 

Define: 

• Clear policy on allowable expenses
• Per diems 
• Mileage reimbursement rates

Make the claims process mobile-friendly so remote staff can submit expenses immediately after an event, and give them status updates so they stop chasing finance for payment.

Security, Compliance, and Data Retention Basics

Encrypt: 

• Data in transit and at rest
• Enforce strong access controls
• Keep records for the retention period required by your jurisdiction

Maintain an audit trail that shows who approved each claim and when, and store receipts linked to each reimbursement.

Questions to Ask When Choosing a Platform 

• Do you need advanced policy rules or simple approvals? 
• Which accounting systems must it integrate with? 
• Can the platform handle the mileage and per diem rules you use? 
• What is the expected time to implement and train users? 
• How will you measure adoption and savings after launch?

Book a Demonstration to Speak with Our Team about Our Global HR System

Cercli centralises payroll, HR, and contractor payments for companies operating across the UAE, Saudi Arabia, and more than 150 countries. Run compliant payroll across regional jurisdictions, handle onboarding, manage leave, track assets, and pay global contractors in multiple currencies. 

Whether you manage 25 people or scale to over 500 across several markets, Cercli provides HR with a simple, compliant system to run operations and pay your workforce anywhere. Book a demo to see how Cercli helps MENA companies simplify HR, payroll, and global team management, ensuring compliance every step of the way.

Clear Expense Policy That Works for Remote Teams 

Write rules that remove guesswork for reimbursements. Define allowable expenses, per diem rates, mileage reimbursement rates, categories for travel expenses, meals, supplies, and home office costs. 

Set receipt requirements and thresholds for petty cash or low-value transactions. Publish a timeline for submission and a deadline for expense claims to keep finance teams on schedule.

Design a Simple Submission Process 

Make expense reports simple to fill out on mobile and desktop. Require digital receipts, attach credit card statements when needed, and offer an expense reimbursement form or template for consistent records. Allow employees to submit out-of-pocket expenses and photo receipts. 

Keep the submission window explicit, such as 30 days after the expense, to reduce late claims.

Approval Workflow That Reduces Delays 

Map approval flows by cost centre, project, or manager level and enforce spend limits. Use an automated approval route for predictable expenses and manual review for exceptions or high-value claims. 

Approvers should see receipts, category codes, and project tags in a single view so they can approve or request clarification fast.

Payment Options and Payroll Integration 

Pay reimbursements by bank transfer, payroll reimbursement, corporate card reconciliation, or cash for petty expenses, depending on the region. Reimbursing via payroll can simplify tax withholding for some jurisdictions, but requires correct payroll coding. Link your expense system to payroll to ensure reimbursements are correctly allocated to the appropriate pay line items and bookkeeping entries.

Manage Multi-Currency Claims and Exchange Rates 

Accept receipts in local currencies and convert using a defined exchange rate method. Store both original amounts and converted amounts for audit and VAT recovery purposes. Set rules for currency conversion at the time of submission or at payment to keep accounting consistent across markets.

Handle VAT and Tax Implications in the MENA Region 

Classify expenses for VAT recovery where allowed. Keep supplier invoices and VAT details for reclaiming input tax. For payroll reimbursements, separate taxable allowances from non-taxable reimbursements and record the right payroll codes for wage reporting.

Advance Payments and Expense Advances 

Offer travel advances for planned trips and require a reconciliation within a fixed period after return. When employees receive advances, tie the advance to the expense claim so finance can reconcile unspent funds and recover overpayments.

Contractor Payments and Global Supplier Reimbursement 

Manage contractor expense claims and contractor invoices with the same rules as employees, but adjust for VAT and withholding norms per market. Utilise contractor payment rails that support multiple currencies and facilitate cross-border transfers, enabling freelancers to receive net amounts promptly.

Receipts, Documentation, and Audit Trail 

Require itemised receipts for lodging and supplier invoices for services above your threshold. Maintain an immutable audit trail that tracks who submitted, who approved, and when payments were issued. Store receipts digitally with tags for project, client, and expense category so reconciliation and expense reports come together for accounting.

Automate Reconciliation and Reporting 

Match corporate card transactions to employee expense claims automatically and flag mismatches for review. Produce regular reports for spending by department, by project, and by vendor to inform budgeting and cost control. Export journals to accounting systems for fast bookkeeping and audit readiness.

Common Challenges and How to Avoid Them 

Avoid vague policies that create exceptions and backlogs. Prevent repeated late submissions by enforcing deadlines. Reduce disputes by training managers on allowable expenses and giving employees clear examples. Prevent duplicate reimbursements by reconciling expense claims against credit card feeds and payroll lines.

How Cercli Streamlines Expense Reimbursement for MENA Companies 

Centralise expense policy, receipt capture, approval workflow, and payment execution in one platform designed for the region. Cercli supports payroll integration, multi-currency contractor payments, and built-in compliance checks for UAE and Saudi payroll rules. 

Use Cercli to shorten reimbursement cycles, keep VAT records organised, and maintain a full audit trail tied to your HR and payroll data.

Questions to Drive Efficiency and Compliance 

• Who approves expenses over a set threshold? 
• What is an acceptable receipt for meals or transport? 
• How quickly will employees receive reimbursement after approval? 

Answering these questions minimises operational challenges, and finance teams spend less time chasing paperwork.

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