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Rob Fanjoy

Guide to Collecting Reimbursable Expenses

Record and report out-of-pocket spending before it gets out of hand

By Rob Fanjoy

Even if reimbursable expenses aren’t a large part of your revenue stream, you still want to be able to invoice and collect what you’re owed for out-of-pocket spending on a contract job. You should treat your time and expense reports as some of the most important documents for your business.

In order to maximize efficiency and payment, you should first:

  1. Track all expenses immediately and accurately.
  2. Set a billing period (weekly, monthly) and send invoices on schedule.
  3. Establish a tracking system suited for your needs (everything from pen and paper to laptops and BlackBerries).

Action Steps
The best contacts and resources to help you get it done


Start at the contract

The most important part of collecting expenses is having an iron-clad contract spelling out those terms — so iron-clad that the client can't imagine disputing it.
I recommend: Sample forms that include sharply written reimbursement details are available at AllBusiness.com and at Onecle.

Keep finicky records

Clients wince at handshake deals for expense reimbursement, and resist reimbursing for undocumented expenses — although many will do so for expenses under $25. Remember: The client needs the receipt for tax purposes, so refusing to reimburse without a receipt isn't just being picky.
I recommend: PDAs like BlackBerry or Treo are great for keeping track of expenses as they occur. You can jot expenses in your PDA as you go, and then upload the data to an Excel spreadsheet when it's time to transfer expenses to a report or invoice. (Most small business accounting software can import the spreadsheet file). Check out WalletWare and Trajectory Labs. If you use QuickBooks accounting software, post a question on the QuickBooks Community to ask about the best ways to track expenses. Also check out desktop expense management/billing programs like Expensable and Invoice2Go.

Prevent late payments

Collecting overdue accounts can be frustrating and costly for any business owner. There are some techniques you can employ to head off delinquent accounts.
I recommend: Get tips from SCORE's Guide to Collecting Payment.

Collect delinquent payment

Sometimes, payment disputes are unavoidable. When mediation is either not an option or has already failed, you may need to go to small claims court. In that case, preparation is your key to success.
I recommend: Read AllBusiness.com's Top 10 Account Collection Mistakes and see if you can avoid going to court. If those steps don't work, check out Going to Small Claims Court.

Tips & Tactics
Helpful advice for making the most of this Guide

  • Applying payment to the wrong account or to the same account twice are examples of common errors – and things to check before assuming a payment is late.
  • Delaying the sending of invoices not only delays payment but suggests to the other party that they have more time to pay.
  • Identify those clients that are either routinely late or require more aggressive collection and address the situation early on. Sometimes a different payment schedule will solve the problem.
More Featured Listings
ExpensePoint WEB: Web-Based Expense Reporting - Free Trial
Register for your free evaluation of this web-based expense report software now! ExpensePoint also has online/offline access feature. $1.50 per month.
Book Live Demo | Free Trial | 5 Star Review
www.expensepoint.com
Expense Report Software
We offer the most complete and flexible employee expense management services in the industry. Call now.
Pricing | Contact Us | Aberdeen Report
www.interplx.com
Expense Report Software
Provides low-cost support, training, consulting and custom report writing for Sage MAS 90, MAS 200 and MAS 500 accounting software.
MAS 90 Support | MAS 500 Training | CRM Software Help | SalesLogix CRM
www.saveonsupport.com
Expense Report Software
Find Expense Report Software. Search listings and reviews of retailers, specialists and services in your local area now.
www.justclicklocal.com
Related Resources

Recommended Solution Providers

About.com: Experts
Ask an expert a question related to reimbursements.

My Work Tools: Online Form
Provides an Excel spreadsheet as a template for a travel expense reimbursement form.

Mentec: Emplouyee Expense Tracking Software
Offers a software solution for tracking employee expenses.

PrimaSoft: Employee Expense Organizer
Provides employee expense software solution.

Concur Technologie: Expense Reporting
Offers a software package that creates expense reports.

WebExpenses: Web Based Expense Reporting
Offers a web-based expense reporting solution.

InFor: Expense Management Software
Provides expense management software.

Expense Watch: Solution
Reduces expenses by providing real-time spend management tools to all employees.

Expense Wire: Online System
Keeps track of reimbursable expenses.

Best Sites to Learn More

Gelco: Expense Management
Expert information in the field of expense management.

Aberdeen: Expense Management Automation (EMA)
Focuses on ways to automate expense management.

KnowledgeStorm: Research
White papers, case studies, and resources for expense management.



FEATURED LISTINGS
ExpensePoint WEB: Web-Based Expense Reporting - Free Trial
Register for your free evaluation of this web-based expense report software now! ExpensePoint also has online/offline access feature. $1.50 per month.
www.expensepoint.com
Expense Report Software
We offer the most complete and flexible employee expense management services in the industry. Call now.
www.interplx.com
Expense Report Software
Provides low-cost support, training, consulting and custom report writing for Sage MAS 90, MAS 200 and MAS 500 accounting software.
www.saveonsupport.com
Expense Report Software
Find Expense Report Software. Search listings and reviews of retailers, specialists and services in your local area now.
www.justclicklocal.com
Expense Report Software
Compare expense report software using Capterra's free, comprehensive directory.
Capterra.com
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