Breaking down the most misunderstood parts of business finance

Finance teams get a lot of questions—like “Do I need a receipt for this?” or “Does this count as mileage?” And while the tools have modernized, some workflows still create confusion—especially for employees who don’t work in finance every day.

Here’s a clear breakdown of five areas that commonly cause friction, plus what to consider if you're updating your systems or policies.

1. Expense reports are not reimbursements

These terms are often used interchangeably, but they mean different things.

An expense report is a structured summary of transactions, typically grouped by employee, date, or category. It can include both card purchases and out-of-pocket expenses. Expense reimbursements , on the other hand, refers to the process of repaying employees for costs they’ve personally covered.

If your team is still relying on manual reporting, using automated cards that sync with expense software can reduce the need for reimbursements altogether. Still, it’s important to understand how both processes work and when each one applies.

2. Not all mileage counts as reimbursable

Reimbursing mileage isn’t as straightforward as tracking miles and issuing payments—it comes with compliance rules.

For example, commuting from home to the office typically isn’t eligible for reimbursement. Rates must follow IRS guidelines or your company’s policies, and documentation—like trip purpose and mileage logs—must be maintained for audits. Try reviewing mileage reimbursement rules to understand how rates are set and how to make sure the right documentation is submitted.

3. Invoices and expense claims aren’t interchangeable

Invoices come from vendors. Expenses come from employees. But when both go through similar approval processes, the line can get blurry.

Invoice processing usually includes vendor setup, general ledger coding, and payment scheduling. Employee expenses are often tied to team budgets and internal policies.

If your team is seeing overlap or confusion between the two, it might be time to revisit how invoice processing works. Clearer distinctions can speed up month-end close and strengthen your internal controls.

4. Business credit reporting isn’t automatic

Not all business credit cards help build credit. Unless a card reports to a commercial bureau like Dun & Bradstreet (D&B), your company may not be building a credit profile—even if you're using the card responsibly.

If your goal is to improve financing terms or build trust with vendors, make sure the card reports activity to the appropriate bureau. Here's a look at cards that report to D&B and what that means for your business credit.

It’s also worth confirming whether activity is being reported under your company’s EIN—or your personal credit file.

5. Not everything needs to be reimbursed

Some teams reimburse a wide range of purchases—meals, subscriptions, even recurring charges. But in many cases, that’s a sign that better tools are needed, not just more reimbursement.

Many of those expenses can be handled through virtual cards , which allow for pre-approvals, automatic categorization, and direct syncing with accounting tools. This shift reduces reimbursement volume, improves policy compliance, and gives finance teams real-time visibility.

Streamlining reimbursements isn’t just about making them faster—it’s about moving expense management upstream.