6 Challenges of Travel Reimbursement and the Solutions

challenges travel reimbursement

Travel and business are the associated parts. Journey made for the purpose of the business is called as Business travel. Travelling has become quite a common phenomenon in the business nowadays.

Business travels include the purposes and the task. This may differ from industry to industry, and below is the list of the general purposes of the business travels.

  • Visiting the customers as well as the suppliers
  •  For company meetings at different locations
  • To represent the company at the conference as well as the exhibitions
  • For marketing and the sales promotion
  • To meet and build new partners

Travel reimbursements

Amount paid to the employee for the business travel expenses are called as the Business Travel reimbursement. Journey expense reimbursements usually paid after producing the accurate bills, as well as the proofs. This is usually given as the separate cash reimbursements. The organization should pay back the travel claims made by the employee.



Challenges of the travel claims

Travel claims and the reimbursement looks simple; but, processing them involves a lot of paperwork which is a  process of burden. Below are the common challenges that occur while claiming and reimbursing the travel expenses.

  1. Receipt management

Receipt management is always a challenge for both the employees as well as the employers. Travel claims loose accuracy without the receipts and the bills.  Managing the receipts are the big challenge for the finance as well as the HR departments.

  1. Approval hierarchy

Payment approval hierarchy delays the payments which will affect the employer’s loyalty. This long claim cycle makes the reimbursement process tedious as well as time-consuming.

  1. Time-consuming

Physical bills, receipt management, missing bills and the mismatch reports combined with the approval systems make the reimbursement a time-consuming process. This will consume a lot of time for the finance as well as the HR department.

  1. Payroll independent

Travel claims are mostly payroll independent; this increases the burden of the finance department and increases the cost of the financial management.

  1. Visibility

Missed bills, as well as the mismatched reports always lead to lack of the visibility. Lack of visibility leads to wrong claims which prove to be  expensive for the organizations

  1. False claims

Claiming for the personal travels and expenses are the common type of the false claims.  Employee commits these false claims while claiming the travel expenses.


To reduce the difficulties of claiming as well as reimbursing the travel expenses, companies should think of upgrading the technology. This should give a connecting link to the traveling employee as well as their activities.

Generally, companies conduct audit’s to reduce the issues of the false travel expense claims. This cannot become the source of truth to make the eligible claims.

Below are the solutions that can reduce the issues of travel claims and optimize the reimbursement process.

  • Mobility with the features of time & the location tracking along with provisions of sharing real-time reports gives the best solution to eliminate false claims.
  • Automatic calculations of reimbursement of the employee expense avoid the report mismatches. This will provide the visibility for the travel claims.
  • Payroll integration of claims and the automation will save the time. Along with the time, this saves the cost of the financial management, together with the HRM cost. This will make the process of reimbursement easy and less time-consuming.
  • Automated simple approval systems will provide an easy reimbursement process for the employee. This will ensure the timely payments.


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