Developing reconstruction methods for diffuse optical imaging requires accurate modeling of photon propagation, including boundary conditions arising due to refractive index mismatch as photons propagate from the tissue to air. For this purpose, we developed an analytical Neumann-series radiative transport equation (RTE)-based approach. Each Neumann series term models different scattering, absorption, and boundary-reflection events. The reflection is modeled using the Fresnel equation. We use this approach to design a gradient-descent-based analytical reconstruction algorithm for a three-dimensional (3D) setup of a diffuse optical imaging (DOI) system. The algorithm was implemented for a three-dimensional DOI system consisting of a laser source, cuboidal scattering medium (refractive index > 1), and a pixelated detector at one cuboid face. In simulation experiments, the refractive index of the scattering medium was varied to test the robustness of the reconstruction algorithm over a wide range of refractive index mismatches. The experiments were repeated over multiple noise realizations. Results showed that by using the proposed algorithm, the photon propagation was modeled more accurately. These results demonstrated the importance of modeling boundary conditions in the photon-propagation model.