Tracking Employee Expenses & Claims: Simplify Reimbursements

When employees pay for taxis, client meals or training courses out of their own pockets, they’re trusting the company to pay them back quickly and fairly. Yet without clear rules, SME owners can end up buried under stacks of receipts, causing delays and disputes that hurt morale and cash flow. A well‑designed reimbursement process does more than keep staff happy: it reduces unjustified claims, boosts financial clarity and strengthens compliance.

Below is a straightforward guide for Singapore businesses that want to streamline employee expenses and claims. It draws on common best practices and local tax considerations, but it’s written in plain English so you can share it on WhatsApp or with your team without jargon.

1. Establish what counts as a business expense

Start by defining which purchases your company will reimburse. Typical reimbursable items include travel, office supplies, meals during meetings, professional training and work‑related mobile or internet bills. Be specific so there’s no confusion later; for example, you might allow economy‑class flights but not premium seats, or cap meal reimbursements at S$50 per person.

Tip: Document any expenses that attract GST separately, and remind staff to ask suppliers to address invoices to your company rather than the individual. According to IRAS, you can only claim input tax if the invoice is in the company’s name and the employee was acting as your agent.

2. Require proof and set a submission deadline

To avoid disputes and ensure GST claims are defensible, reimburse only expenses backed by receipts. Make it clear which forms of proof you accept—register receipts, emailed invoices or digital purchase confirmations are all acceptable. Decide whether photos of receipts are enough or if you need original hard copies.

Don’t forget timing: ask staff to submit claims within a set window, such as 30 days from the purchase. Late claims slow down reimbursements and complicate tax reporting. For employees, timely submissions mean they get their money back sooner; for finance teams, it makes cash planning easier.

3. Go paperless and automate

Paper receipts are easy to lose, and spreadsheets quickly become a mess. Switching to digital submission tools or mobile apps lets staff snap a photo of the receipt and submit it right away. On the back end, automation routes each claim to the right manager for approval and posts approved expenses directly into your accounting system, reducing manual work and errors.

If you use ABSS/MYOB or SQL Account, you don’t need separate expense software. Simply create a supplier record for each employee . You can create supplier invoices to track the reimbursement payment. No double‑entry and no extra spreadsheets.

4. Define an approval workflow and spending limits

Not every claim needs a finance manager’s sign‑off. Set up an approval matrix that matches your organisation’s structure: maybe the department head approves claims up to S$200; anything higher goes to finance. Clear rules reduce bottlenecks and discourage unauthorised spending.

For high‑risk categories—like entertainment or travel—require pre‑approval before the employee commits. Setting dollar thresholds for auto‑approval speeds up small claims, while a second authoriser reviews larger expenses.

5. Keep compliance and tax in mind

Under Singapore’s tax rules, reimbursements that are properly substantiated—backed by receipts and used for business purposes—are not taxable for employees and are deductible for employer. If you can’t justify an expense, it may be treated as a taxable benefit, increasing your team’s tax liability. Keep every claim backed up by receipts and maintain organised records.

Remember that IRAS will not accept input tax claims if invoices are addressed to employees. Always record the reimbursement in your accounts payable and maintain evidence that the employee acted on behalf of the company.

6. Monitor spending trends and adjust

Reimbursement policies shouldn’t be set and forgotten. Use your accounting software’s reports to spot trends: are travel costs growing? Is one department spending more than expected? Regular reviews help you tighten policies or adjust budgets accordingly. Data also helps you forecast cash outflows so you’re not surprised by reimbursement requests.

Final thoughts

Tracking employee expenses isn’t just about paying people back—it protects your cash flow, keeps you compliant with IRAS rules and shows your staff you value their efforts. By defining what’s reimbursable, insisting on proper documentation, automating approvals and keeping tax rules in mind, you can cut down on disputes and reduce admin work.

Ready to simplify reimbursements? Apscom Solutions specialises in ABSS/MYOB and

SQL Account. We’ll help you set up expense categories and build reports that give you visibility into spending. Message us today to see how the right process and software can make reimbursement day a breeze.