Keep in mind that proof of the payment is also a legal requirement for tax purposes. Suitable forms of evidence include receipts, invoices, or some other document related to the cost. There will need to be some proof provided as evidence of the expenditure. Make sure you understand the legal requirements for your country. The local legislation will have a lot to say about what constitutes a valid business expenditure. This definition is expansive and could cover anything from printing services to purchasing an airline ticket. The expense must have a clear business purpose and relate to a service you need to do your job. They often choose not to include a reimbursement fee on the invoice because they aren’t clear on what they can and cannot charge.īefore we get started defining specific expense categories, let’s understand what constitutes a valid business expenditure that you could pass on to a client. 5 proven strategies for consultants and freelancers to collect reimbursable expensesĮmployees usually have it a lot easier than freelancers because most companies have a comprehensive expense policy they can refer to for specifics.Ĭonsultants and freelancers don’t have this luxury.The 3 questions to ask whether expenses are reimbursable.What costs can you include, and which ones should you leave out? Let’s clear up any confusion by taking a more in-depth look at this topic. Save time in approvals with clearly defined and communicated guidelines. They also assure that invoices don’t include unpleasant surprises. Expense policies are essential to keep everyone on the same page about what can and should be charged. However, just because you can have an expense reimbursed or added to your invoice, it doesn’t necessarily mean that you should. Consultants and freelancers can usually add reimbursable expenses to their invoices, provided they meet the company’s expense management guidelines.
In most cases, it is a perfectly reasonable expectation that organizations reimburse their employees for these costs. Employees, business owners and consultants typically incur extra expenses performing their work or services for their clients.
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