How to use this template
Copy the text below into your own document. Replace every [bracket] with a number or name that fits your business, delete sections that don’t apply, and keep the whole thing short enough that people will read it. Dollar limits are left for you to set.
The template
1. Purpose and scope
This policy explains how [Company name] employees, contractors and owners spend company money and claim back money they have spent. It applies to company cards, personal cards used for business and out-of-pocket purchases.
2. What is covered
Business expenses are costs that are ordinary and necessary for the company’s work. Typical examples are [travel, lodging, meals with clients, software, supplies, training]. Personal expenses are never covered. If a purchase mixes business and personal items, only the business portion is covered.
3. Approval
- Purchases up to $[amount] don’t need approval in advance.
- Purchases above $[amount] need approval from [role] before you buy.
- Recurring subscriptions need approval from [role], whatever the amount.
4. Receipts and records
- Every expense needs a receipt, or an itemised invoice, showing the merchant, date and amount. [Optional: receipts are not required for expenses under $[amount], other than lodging.]
- Send receipts to [email address or number] within [number] days of the purchase.
- Each expense must also state its business purpose and, for meals, who attended.
- If you lose a receipt, ask the merchant for a copy. If you cannot get one, complete [form or note] giving the date, amount, merchant and business purpose, and have [role] sign it.
5. Company cards
- Company cards are for business expenses only.
- Cards are assigned to one person, who is responsible for every charge on it.
- Lost or stolen cards must be reported to [role] immediately.
6. Personal cards and out-of-pocket spending
Expenses paid personally are reimbursed when submitted with receipts under section 4. Reimbursement is paid within [number] days of approval.
7. Travel and meals
- Book [class of travel] and the [lowest reasonable fare or standard rate].
- Meals are covered up to $[amount] per person per [meal/day]. Alcohol is [covered/not covered].
- Mileage is reimbursed at [rate or IRS standard rate].
8. Deadlines
Expenses are due by [day] of the month after they are incurred. Anything later may be rejected at [role]’s discretion.
9. Missing or non-compliant expenses
Unsubstantiated expenses are the employee’s responsibility. Repeated or intentional breaches of this policy may lead to [consequence].
10. Questions
Contact [name or role] at [email].
Notes on the IRS rules
IRS Publication 463 says you generally need documentary evidence such as receipts, canceled checks or bills to support business expenses. It is not required for an expense under $75, other than lodging. Lodging needs documentary evidence unless an accountable plan with a per diem allowance covers it. Documentary evidence is generally adequate when it shows the amount, date, place and essential character of the expense, and your own record should show the amount, time, place and business purpose. See Publication 463 for the rules in full, and ask your accountant how they apply to you.
Making it stick
A policy only works when it is easy to follow. Name one place to send receipts, one person who owns the list of what is missing, and a weekly rhythm for reviewing it. The month-end checklist covers the rest.
With Barespend, your team emails, texts or uploads receipts, and each is matched to the card or bank transaction it belongs to, with unmatched transactions flagged early. That makes the deadlines in section 4 and section 8 much easier to meet. Start a free 7-day trial and test it on your own receipts.
Prefer to fill in a form? The expense policy builder writes a first draft from your limits and deadlines.