How should the deadline for employee expense reimbursement be set?
A finance professional hopes to shorten the month-end closing time by moving the expense reimbursement submission deadline from the 5th to the 3rd day and the approval deadline from the 8th to the 5th day, but internal feedback suggests this is not feasible. This article sorts out the questions raised and mentions alternative approaches such as "submitting on the 25th and accruing for 5 days," seeking advice that balances speed and accuracy.
We are working to shorten the month-end closing cycle, and upon investigation, the processing time for employee expense reimbursements is one of the key factors slowing down the overall process. Currently, our reimbursement submission deadline is the 5th business day of each month, and the approval deadline is the 8th business day. I propose moving the submission deadline up to the 3rd business day and the approval deadline up to the 5th business day to speed up the process. However, initial internal feedback suggests that this adjustment is not realistic.
Here, I would like to ask my peers: Are the above new deadlines reasonable? Does anyone use the practice of "submitting on the 25th of each month and accruing for the remaining 5 days of expenses"? Additionally, what other suggestions or strategies could further reduce reimbursement processing time without sacrificing accuracy? I look forward to your insights. —Carrie