Shaw & Associates Chartered Accountants is happy to take on all
of your accounting needs, including checking and reimbursing employee
There is a rise
in non-allowed employee expense claims in Canada, with some of those
claims varying from puzzling to outrageous. Having a good plan for
employee expense reimbursement and having someone like Shaw &
Associates working with you will go a long way to preventing employees
from taking advantage of an expense reimbursement plan.
Legitimate Expenses Reimbursed – No Problem
Most companies reimburse employees for legitimate expenses they have
incurred on behalf of the company. These include things like travel
costs that an employee pays for a work trip, supplies that an employee
buys for use in the business, or costs incurred while meeting clients
for the business. These expenses should be reasonable and common for
your industry. For example, a salesperson who is often required to meet
with clients at their job would normally be reimbursed for the expense
of driving their car to the client’s worksite.
Nope, No One Gets to Claim for THAT!
While most employees who put in claims for expense reimbursement are
not trying to take advantage of their employer, some employees seem to
operate on the basis of a, “You never know if you don’t try it” system.
Some of the more notable claims for expense reimbursement that
employees have tried to claim are for illegal activities, expensive
restaurants (far beyond what would be normal for taking a client out for
a working meal), hiring a limousine when a taxi would have sufficed, or
buying personal items for the employee or the employee’s house.
Expense Plan and Employee Engagement
Your best plan is to have an employee reimbursement plan, discuss
employee expense reimbursement with all your employees regularly, and
make sure everyone understands what is and what is not a legitimate
business expense. It’s also an extremely good idea to require proof of
expenses for all expense claims, and make sure these receipts are
checked before money is given out.
Here’s a quick video with some tips on staff expenses and reimbursement.
Contact Shaw &
Associates Chartered Accountants for accounting help you can count on.
One complimentary meeting with us will put you and your business on a
more profitable and positive path.