Reimbursements Approval Process
A step-by-step workflow that verifies, documents, and authorises payouts to employees, contractors, or customers after they have spent money on behalf of the organisation.
Key Facts
Alternate names: reimbursement workflow, repayment authorisation, pay-back approval
Typical stakeholders: requester → line manager/project owner → finance/AP → treasury/cash-management
Core documents: proof of payment (receipts, invoices), expense report, policy excerpt, cost-centre or project code
Common channels: expense-management system, supplier portal, HR platform (for mileage or health claims), email + spreadsheet (legacy)
Why It Matters
Reimbursements touch real money leaving the bank. A robust approval process:
Protects cash by ensuring only valid, budgeted costs are repaid.
Keeps employees happy through predictable, transparent turnaround times (no one likes waiting eight weeks for their own money).
Meets regulatory demands (e.g., tax-authority rules on substantiation, anti-bribery controls).
Limits audit exposure because every decision is logged and traceable.
In short, a clear reimbursements approval process is the final firewall between company funds and erroneous or fraudulent claims.
Real-World Examples
Government Agency
Per-diem travel reimbursements must be approved within three business days by both the programme manager and finance. Automated checks clamp down on exceeded meal limits, reducing rejected claims by 43 % Y/Y.
Early-Stage Startup
The founding team sets a single-level approval ≤ €100 and dual-level (> €100 goes to the CFO). Using Slack approvals integrated with the expense app, average reimbursement time shrinks from 15 to 3 days—key for employee morale when cash compensation is lean.
Diagram / Visual (optional)
Visual shows swim-lanes: Employee → Manager → Finance/AP → Treasury – with automated policy engine running parallel duplicate-check and tax-coding steps.
Related Terms
Expense Approval
Accounts Payable (AP)
Expense Policy
Duplicate Payment Check
Frequently Asked Questions
Q: How fast should reimbursements be approved?
A: Best-in-class organisations turn approvals within 24–48 hours and pay out on the next payroll or weekly AP run.
Q: What’s the difference between expense and reimbursement approval?
A: Expense approval validates the spend itself before it hits the ledger; reimbursement approval validates the cash payout to the employee once the expense is booked.
Q: How do we prevent duplicate reimbursements?
A: Use software that automatically scans for matching amounts, dates, and vendor names across prior claims, and flag duplicates for manual review.
If you have any questions or need further assistance, feel free to reach out to our
support team.
