Reimbursement Compliance & Audit

Duplicate reimbursement claims are detected by comparing receipt images and extracted receipt data—transaction amounts, dates, and vendor names—across all submitted expenses using automated matching algorithms that flag potential duplicates for review.

After payment, reimbursement corrections are handled by reversing the original transaction with a journal entry, recording the overpayment as a receivable, and recovering the funds through employee repayment, payroll deduction, an offset against future reimbursements, or a write-off if recovery isn’t feasible.

Reimbursement disputes during audits are resolved by submitting complete supporting documentation—receipts, invoices, and transaction records—within audit deadlines, reconciling internal records against external statements to identify discrepancies, and maintaining clear approval trails that substantiate each claim.

Retain reimbursement documentation for at least seven years from the date of the expense to satisfy extended audit windows, certain IRS situations, and most regulatory frameworks—though the IRS baseline requirement is generally three years.

You must maintain adequate substantiation showing the amount, date, place, and business purpose of certain expenses. Documentary evidence (such as receipts) is required for all lodging expenses and for any expense of $75 or more (with limited exceptions).