If your nonprofit organization regularly reimburses employees or volunteers, it’s important to have a good system for expense reporting. This system should make it clear what documentation is needed, what forms should be filled out, and what the timeline for reimbursement is. If your expense reports are too complicated or inconvenient, it can waste a lot of time and cause headaches all around. There are several simple steps you can take to streamline your reimbursement process:
Lay Down The Rules
Make reimbursements easier by setting clear rules for allowable expenses and the overall reporting process. Think about common questions or tricky situations that may come up. For example, what is the reimbursement rate for mileage? Are there any expenses that are not reimbursable? What kind of documentation is required? What happens if a receipt is lost or unobtainable? By answering these questions ahead of time, you will cut down on any confusion associated with reimbursement requests.
Set Deadlines
Expense reports should always be processed in a timely manner. Over time, memories fade and receipts go missing – so it’s important that your staff and volunteers submit their reimbursement requests as soon as possible. Your organization should set deadlines for reporting, with the understanding that any expenses not reported in that time period will not be reimbursed. This will help keep your bookkeeping on track as well.
Design Forms Thoughtfully
If your organization requires employees or volunteers to fill out a standardized form for reimbursement, make sure you’ve put some thought into how this form is designed. At a minimum, it needs to include the date the expense was incurred, the purpose of the expense, the amount, and to whom the reimbursement should be paid. It may also include spaces for approval, accounting codes, or other internal needs. Make sure that the form is easily accessible to anyone who may need to be reimbursed, and contains clear instructions for completion and submission.
Embrace Technology and Automation
For organizations that deal with frequent reimbursements and lengthy expense reports, an automated solution like Expensify can save a lot of time. These applications allow users to upload smartphone photos of their receipts to a digital portal, where the approval and reimbursement process is as easy as a few clicks. Even if an automated system is too much for your current needs, it’s still a good idea to use technology to your advantage when it comes to expense reports. With that in mind…
Digitize Everything
Nothing is more frustrating for accounting professionals than having to spend their valuable time digging through crumpled, coffee-stained receipts scrawled with illegible notes. For the sake of your accountant’s sanity, it’s best to digitize your expense documentation. Simply scanning your receipts to a PDF can save a lot of time on the accounting side – and prevent important documentation from going missing during your next audit!