The real cost of reimbursing employees for business expenses

What if we told you that your reimbursement process is doing more harm than good?

In today’s fast-paced business environment, speed and agility aren’t just beneficial, they’re necessities. Yet, reimbursement systems are painfully slow, mired in outdated workflows and red tape that burden both employees and finance teams. This isn’t just an administrative inconvenience, it’s a serious operational flaw that can impact your bottom line and your culture.

Reimbursements are inherently inefficient

While it may seem like a faster way to pay for expenses, the reality is anything but…

Reimbursement claims require employees to jump through multiple hoops: collecting receipts, filling in forms, chasing managerial approval, and waiting for finance to reconcile transactions.

A single error, like a missing receipt or an incorrect form, can derail the entire process. And even after final approval, reimbursements are often only processed in the next payment cycle. That leaves employees financially exposed, sometimes for weeks.

This kind of administrative lag isn’t just inefficient; it’s antiquated.

Reimbursements undermine employee trust and financial well-being

Here’s where the true cost comes in. Most often, employees who cover company expenses out-of-pocket are not executives, they’re support staff, junior employees, or field workers. For these individuals, fronting money can pose a significant financial burden. A delayed reimbursement could mean missing a bill payment or incurring interest on credit used to cover the gap – adding to the financial stress of your employees.

A survey conducted by World Wide Worx, commissioned by TymeBank, revealed that 76% still find themselves out of money before the month ends.

A study by Sanlam showed that 57% of South Africans stated that their mental wellbeing was impacted most severely by financial stress.

The emotional toll is just as damaging. Having to repeatedly follow up on their own money can feel demeaning and demoralising. Over time, this erodes trust, fosters resentment, and contributes to workplace dissatisfaction, especially when the system seems to favour senior staff with access to company credit cards.

Reloadable debit cards as a smarter alternative

Forward-thinking businesses are now shifting to reloadable debit cards – a more efficient, equitable, and scalable solution. These cards allow companies to preload expense allowances directly to employees, eliminating the need for them to spend their own money in the first place.

The benefits go far beyond convenience. With real-time transaction tracking, downloadable reports, and spending controls, reloadable cards offer superior compliance and control. Finance teams can instantly monitor where funds are going, ensuring every cent is spent in line with company policy.

Additionally, having pre-set budgets on each card encourages smarter spending habits and makes expense forecasting easier and more accurate. You’re not just digitising the process, you’re building a proactive expense culture.

Reimagining company spending for the modern age

In a time when businesses are striving to be more people-centric and operationally lean, clinging to outdated reimbursement models is counterproductive. The shift toward smarter expense solutions like reloadable debit cards isn’t just about modernisation, it’s about recognising that how your company handles money says a lot about how it values its people.

So ask yourself: Is your current expense system supporting your business strategy or silently sabotaging it?

The future of finance isn’t about managing the fallout. It’s about eliminating the friction. And that future is already here.

Reimbursements aren’t the only underestimated cost. Using cash for petty expenses could be quietly draining your bottom line. Find out how in our blog The hidden costs of petty cash: why your business might be losing more than you think.

*Image sourced from Canva