Team Happay
By: Team Happay
Published on: March 24, 2017

Guide to Expense Policies

Running a business comes with its fair share of paperwork. Adding to the already mounting pile, is the policies you need to bring in place for your employees expenses. Irrespective of the reason your employees are spending for the company, it’s imperative that all the rules pertaining to these spends are clearly laid out. The policies will definitely differ based on your company’s size and need, but every policy needs to be thoroughly detailed and fair to the employees.


1. Thoroughly research on what you’d like your policy to cover.
Detail the type of expenses your company is willing to reimburse, and the grades/levels of employees within the organization. Decide the acceptable price levels for each, and lay down all the rules that need to be followed, including the acceptable amount to be spent on meals, the list of hotels they’re permitted to stay at, and how to account for other miscellaneous expenses. Make sure all the policies are clearly communicated to all the employees. Any ambiguity in expense policies will only add on to the hassles.

2. Differentiate employee grades and the tags they carry
Certain companies prefer offering different levels of business expenses for different employees. For example, managers maybe allowed to stay in 3 star hotel rooms, while entry level employees are expected to stay in budget rooms. It’s important that you make these rules as explicit as possible to avoid any further confusion.

3. Decide the length of your reimbursement cycles
For people who travel frequently, a significant amount of their salaries are always in rotation. It’s always best to reimburse employees as quickly as possible to not let them hanging in a state with of no money. While company credit cards are making this easier, it’s not practically possible to arm every employee with this.

4. Enforce and update your policies
Building the expense policies will turn out futile if they aren’t practiced. You can start gradually: Ask the managers on one team to implement the policies everytime an employee submits his expenses. Analyze the results, work your way through the problems and once it’s working with minimal flaws, you can go ahead and implement it with all the teams. Also keep in mind to update the expense policies to keep up with the times. What was the order of the day 5 years back maybe not be in existence today. It’s important to keep the best interests of the employee in mind while designing these.

The number of expense policies for larger organizations come with their fair share of challenges. Automation is gradually helping organizations in embedding and implementing these policies as and when employees submit their expenses. Take a look at how expense automation can help in implementing expense policies.

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Team Happay
The editorial team at Happay puts together curated content that helps Indian SMEs and Enterprises take control of business payments. We create content on a wide array of topics from B2B payment trends and spend management best- practices to real-life case studies of how CXOs of different organizations use automation and mobility to manage business spends more effectively.

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