Business Expenses Expenses

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Example You own an SME that specializes in the construction industry. One of your employees purchases a workwear hard hat and durable work boots. These items are necessary for her work as a builder. It is therefore considered a professional expense and may be reimbursed upon provision of proof of purchase and expense report. Your business partner invests in a three-piece evening gown. This outfit is not essential as a construction site foreman and therefore this expense should not be reimbursed.

Different Ways to Reimbursecan be reimbursed as actual expenses or as a fixed allowance. It is worth mentioning that employers are free to photo retouching choose how they want to be reimbursed and prior consultation with employees is recommended but not mandatory. They can also choose to use different methods to reimburse different employees based on their role.



Regardless of the repayment method we recommend applying the same expense policy to all employees which means strict rules on what employees can and cannot purchase with company funds. Otherwise the entire expense situation can quickly become very complicated. Actual cost reimbursement Reimbursement of actual costs refers to the amount of actual expenses paid back for every penny you get. Example You pay Euros to book a hotel room for an overnight business trip.