The Estonian business system is flexible and allows company board members to occasionally pay business expenses using personal funds.

For example, imagine Ana is traveling for work and forgets her business card. She pays for a business-related flight using her personal card. This is completely acceptable as long as the expense is genuinely business-related and the invoice is issued to the company.

These types of expenses are called Out-of-Pocket Expenses.

Later, the company can reimburse the person who paid the expense without creating additional taxes, provided the process is handled correctly.

Who Can Declare Out-of-Pocket Expenses?

Any board member of an Estonian company can pay business expenses with personal funds and later request reimbursement from the company.

Important:

• The expense must be business-related
• A valid invoice must always be issued to the company
• The reimbursement must match the expense amount

How to Declare and Match Out-of-Pocket Expenses

Follow these steps in Companio:

1. Upload the Invoice

Upload the invoice or receipt to Companio as usual.

Make sure the invoice is issued to your company.

2. Mark the Expense as “Out of Pocket”

When classifying the invoice, mark it as Out of Pocket Expenses.

This informs the accounting team that the expense was paid using personal funds.

3. Reimburse Yourself From the Company Account

Transfer the exact amount from the company bank account to the personal account that originally paid the expense.

If possible, include a clear description in the bank transfer, such as:

• “Out-of-pocket reimbursement”
• “Business trip expense reimbursement”

4. Match the Bank Movement

Once the reimbursement transfer appears in your bank movements section, match that outgoing transaction with the invoice.

Because the invoice was marked as an out-of-pocket expense, the accountant will understand that the transfer to the personal account is a reimbursement and not a personal expense.

Important Notes

• There must always be a valid invoice linked to the reimbursement
• The reimbursement amount should match the original expense
• If you matched the invoice incorrectly before, you can always re-link it later
• Out-of-pocket expenses should only be used occasionally for legitimate business expenses

Updated on: 15/05/2026