Reimbursement claim may seem like a minor part of a company’s operations, but when they’re handled poorly, they can quietly create friction across teams. Employees get frustrated, finance teams feel overwhelmed, and trust in internal processes deteriorates. Delayed reimbursements are more than just a timing issue, they’re a signal that something deeper might need fixing. In this article, we explore the most common reasons why reimbursement claims get delayed and offer practical steps any organization can take to fix them.
Unclear or Overly Complicated Reimbursement Policies
One of the leading causes of delay is confusion. Many employees don’t fully understand what can and cannot be claimed, what documents are needed, or how long it will take to process a claim. Policies may exist, but if they’re buried in an HR manual or written in legal jargon, they’re unlikely to be followed correctly. Make your reimbursement policy clear, simple, and accessible. Use everyday language and real-life examples (like taxi fares, lunch with clients, or office supplies). A visual step-by-step guide or FAQ section can be helpful for new employees and busy managers alike.
Read more: Understanding Cybersecurity in the Age of Digital Transformation
Missing or Incomplete Documentation
Receipts that are hard to read. Forms that are half-filled. Claims without any proof at all. These issues force finance teams to chase down missing information, creating unnecessary back-and-forth that drags out the process. Standardize your process. Create a checklist that employees can refer to before submitting. If possible, use a digital form that doesn’t allow submission unless all fields and attachments are completed. This one small change can save hours of admin time.
Manual, Paper-Based Processes
In today’s work environment, relying on physical documents such as printed forms, stapled receipts, and handwritten notes can slow the process. If claims need to be handed over in person or passed around for approval, delays are inevitable. Move the process online. There are plenty of tools (even basic cloud forms or shared folders) that allow teams to submit, review, and approve claims without needing to be in the same location. Digital records are also easier to track, which speeds up auditing and reduces errors.
Approval Delays
Sometimes, everything is submitted perfectly, but the claim gets stuck in someone’s inbox. This is common when approval depends on a single person (like a team lead or department head) who may be unavailable or unaware that something is pending. Introduce reminders and shared responsibility. If one person isn’t available, there should be a backup approver. Automated email nudges or dashboards that show pending approvals can help prevent claims from falling through the cracks.
Lack of Priority or Visibility
For some organizations, reimbursement claims are seen as low priority. They don’t directly impact revenue, so they get pushed aside until someone complains. Unfortunately, this creates dissatisfaction among employees — especially those who’ve spent their own money for work purposes. Treat reimbursements with the same respect as payroll. Set a regular schedule for processing claims (e.g., every Friday or twice a month). Communicate this clearly so employees know when to expect reimbursement and don’t feel left in the dark.
Disputes Over Validity of Claims
Disagreements about what’s “reasonable” or “necessary” can cause delays. For example, is a team dinner valid if it’s not client-facing? Is a taxi home after a late meeting reimbursable? Without clear rules, finance teams hesitate to approve certain claims, and employees feel unfairly questioned. Update your policy with clear inclusion and exclusion rules. If there are gray areas, allow team leads to pre-approve certain types of expenses. Transparency reduces conflict.
Disorganized Record-Keeping
When receipts are scattered across email threads, personal chats, or buried in physical drawers, it becomes hard to verify claims — especially during audits. This leads to delays in processing or, worse, the rejection of valid expenses due to lack of documentation. Create a centralized system — even a shared Google Drive or folder with dated subfolders can work. Encourage employees to upload receipts immediately after an expense is incurred to avoid last-minute scrambling.
Reimbursement claims may seem small, but a company’s handling of them speaks volumes. When claims are delayed, it can quietly damage trust and morale. However, when the process is simple, timely, and transparent, it shows that the company respects its people and values their time and contribution.
Fixing delays doesn’t always require fancy software — just clarity, consistency, and a little bit of structure. The result? Happier employees, smoother finance workflows, and one less thing to stress about.
