Why policies fail
A twelve-page policy that nobody reads produces the same outcome as no policy, plus the illusion of control. The ones that work are short, specific about the handful of categories that make up most spend, and clear about the approval path.
Be specific where it matters
Vague guidance like 'reasonable expenses' moves the judgement to the employee and the argument to the manager. Stating limits for meals, travel class, equipment and software removes most of the ambiguity, and the few genuinely unusual cases go to an exception process.
Cover the modern categories
- Software subscriptions bought on personal cards.
- Home office equipment for remote staff.
- Client entertainment, and what documentation is required.
- Mileage versus rideshare.
- Personal cards used in emergencies and how they get reimbursed.
Documentation requirements
State what a valid receipt looks like, the threshold below which one is not required, and the deadline for submission. Policies silent on deadlines produce expense claims six months late, which are impossible to audit and awkward to refuse.
Enforcement
A policy with no stated consequence is guidance. Decide in advance what happens with non-compliant claims and apply it consistently, because inconsistent enforcement is worse for morale than strict enforcement.
TallyWise provides this as part of our bookkeeping services. Book a call to talk through your situation.
