Micromagnetic simulations are used to investigate the effects of different absorbing boundary layers (ABLs) on spin waves (SWs) reflected from the edges of a magnetic nano-structure. We define the conditions that a suitable ABL must fulfill and compare the performance of abrupt, linear, polynomial and tan hyperbolic damping profiles in the ABL. We first consider normal incidence in a permalloy stripe and propose a transmission line model to quantify reflections and calculate the loss introduced into the stripe due to the ABL. We find that a parabolic damping profile absorbs the SW energy efficiently and has a low reflection coefficient, thus performing much better than the commonly used abrupt damping profile. We then investigated SWs that are obliquely incident at 26.6°,45° and 63.4° on the edge of a yttrium-iron-garnet film. The parabolic damping profile again performs efficiently by showing a high SW energy transfer to the ABL and a low reflected SW amplitude.