Expense reimbursement is the process of compensating employees for any out-of-pocket expenses that they incur on behalf of their employer while performing work-related activities. This can include expenses such as travel costs, meals, lodging, and equipment purchases. Proper management of expense reimbursement is important for ensuring that employees are fairly compensated for their expenses, while also minimizing the administrative burden and cost to the employer. This may involve setting clear guidelines for expense reporting, establishing reimbursement rates, and using efficient processes and tools for expense tracking and reimbursement. Proper communication and training on expense reimbursement policies and procedures can help to avoid misunderstandings and ensure compliance with company and legal requirements.