Why is it so hard to manage your reimbursements for utility expenses?
I process many reimbursement expenses for brokers and agents around the country on a daily basis and the most self-created problem that brokers and agents have is that they lose thousands of dollars monthly in reimbursements for utilities from the bank. What causes this problem?
- Being unorganized
- Not taking care of the expense when received
- Paying late fees
- Sitting on the paid bill and submitting when time permits, often 4-6 months later
Utilities should be the simplest of all to take care of when you know what you are doing and/or if you are good at managing your expenses. Below is a simple method to saving you time, money, and unnecessary phone calls to the bank asking, “Why wasn’t I paid.”
- When the utility bill comes in, process the bill by inputting the information into your accounts payable system and write the check.
- Make a copy of the check and utility bill for the reimbursement. Do not cover the property address, account number, and bill detail with a copy of the check. Attach to the bottom or on a separate sheet.
- Using the remittance invoice, input the check, bill, and seal.
- On the upper right or left backside of the envelope, list the due date minus 5 days, and add the complete payment to a 31-day accordion folder in order of due date minus 5 days.
- Submit the reimbursement immediately for payment from the bank.
- Finally, send the utility bill 5 days before the due date to ensure the utility company records the payment and that you are not paying any late fees.
Ok, some will say that this is the process currently use. However, I must point out that if you submit for reimbursement immediately, the reimbursement would be received from the bank before the utility bill is due. This process will help you avoid detaining much-needed funds and in most cases, that bank will reimburse you within 15 – 20 days giving you ample time to mail the bill to the utility company.