Expense policy in travel expense management

Key principles of an expense policy: 

• Guidelines: Specifies eligible expenses such as travel, accommodation, and meals.
• Limits: Sets reimbursement caps and rates for various expenses.
• Submission: Details the process for submitting expense reports and the required documentation.
• Approval: Describes the workflow for reviewing and approving expenses.
• Compliance: Ensures adherence to company policies and legal requirements.
• Audit: Establishes procedures for auditing and maintaining expense records.

Example of an expense policy

A company may allow up to £150 per night for hotel stays and require expense reports to be submitted within 30 days, with receipts for expenses over £25.

For a deeper look, see our guide on creating a clear expense policy here.

The benefits of an expense policy

• Stay organised – Everyone in the company handles expenses the same way, reducing confusion and errors.
• Stay on top of travel costs – Helps keep travel spending within budget by setting clear limits and tracking costs.
• Automate policy compliance – Ensures your team follows all legal and company rules, avoiding penalties or audits.
• Speed through approvals  – Speeds up expense reporting and approval, saving time for employees and finance teams.
• Make policies crystal clear – Makes expense policies easy to understand and ensures everyone is held accountable.

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