FAQ on expense types

This article provides answers to some of the most frequently asked questions (FAQ) related to different expense types in Payhawk.

Can I make reimbursements in US entities without a credit line if I don't use cards?

Yes, if your US entity chooses not to use corporate cards, reimbursements can still be processed, but there are some requirements to enable this functionality. To reimburse your US employees through your US entity, you must complete a straightforward KYC process, along with the setup of a USD 1.00 credit line. The funds for such reimbursements are withdrawn directly from your existing US bank account rather than your Payhawk account.

Why does Payhawk generate invoices per travel booking instead of monthly consolidated invoices?

Payhawk generates individual invoices per travel booking rather than monthly consolidated invoices, because this approach provides better financial control and visibility. Thus, Finance teams gain both control and efficiency – real-time data for better decision-making, without the administrative burden.

The table below summarizes the characteristics of the per-booking invoices approach and the centralized invoices approach.

Characteristics of the per-booking invoices approach	Characteristics of the centralized invoices approach
Finance teams see travel spend as soon as it happens. It’s easier for them to track budgets and spot non-compliance early.	Finance teams only see the true picture of spend after the monthly statement. It’s harder for them to forecast cash flow mid-month.
Invoices can be automatically tagged to cost centres, departments, or projects at the time of booking.	Linking individual trips to departments, cost centres, or projects requires internal allocation after the monthly lump sum. That’s manual and messy without tight data capture.
Leaders are not blindsided at the end of the month by a big consolidated bill.	If policy is ignored during the month, Finance teams can only intervene after the fact; by then, spend leakage has already happened.

Characteristics of the per-booking invoices approach

Characteristics of the centralized invoices approach

Finance teams see travel spend as soon as it happens. It’s easier for them to track budgets and spot non-compliance early.

Finance teams only see the true picture of spend after the monthly statement. It’s harder for them to forecast cash flow mid-month.

Invoices can be automatically tagged to cost centres, departments, or projects at the time of booking.

Linking individual trips to departments, cost centres, or projects requires internal allocation after the monthly lump sum. That’s manual and messy without tight data capture.

Leaders are not blindsided at the end of the month by a big consolidated bill.

If policy is ignored during the month, Finance teams can only intervene after the fact; by then, spend leakage has already happened.