expense-policy

name	expense-policy
description	Creates corporate expense policies with spending limits, approval workflows, and reimbursement procedures. Use when establishing rules for business spending and reimbursements.
allowed-tools	Read Write Glob
metadata	{"author":"matthewhitcham","version":"1.0"}

Expense Policy

When to Use This Skill

Use this skill when you need to:

• Create an expense reimbursement policy for your team or company
• Define spending limits, approval workflows, and acceptable expenses
• Establish receipt requirements and reimbursement timelines
• Document travel, meals, and entertainment expense rules

DO NOT use this skill for budgeting (use budget-planner), accounting setup (use bookkeeping-setup), or personal expense tracking. This is for company expense policies.

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Core Principle

A GOOD EXPENSE POLICY EMPOWERS EMPLOYEES TO SPEND WISELY WITHOUT ASKING PERMISSION FOR EVERY COFFEE — CLEAR LIMITS, SIMPLE RULES, FAST REIMBURSEMENT.

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Phase 1: Company Context

Required Inputs

Input	What to Ask	Default
Company size	"How many people will this policy cover?"	1-10
Team structure	"Who approves expenses? (founder, managers, self-approval under threshold)"	Founder approves all
Common expenses	"What do people typically expense? (software, travel, meals, supplies)"	Software, meals, supplies
Budget constraints	"Any hard spending limits?"	Reasonable and necessary standard
Reimbursement method	"How do you reimburse? (payroll, direct deposit, corporate card)"	Direct deposit
Remote or in-office	"Is your team remote, in-office, or hybrid?"	Remote

GATE: Do not proceed without company size and common expense types.

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Phase 2: Policy Framework

Expense Categories and Limits

## [Company Name] Expense Policy

**Effective date:** [Date]
**Applies to:** All employees and contractors authorized to incur expenses

### Spending Limits

| Category | Per-Occurrence Limit | Monthly Limit | Approval Required |
|----------|---------------------|---------------|-------------------|
| Software/subscriptions | $[50]/month per tool | $[200]/month | Under $50: self-approve |
| Office supplies | $[100] | $[200] | Under $50: self-approve |
| Business meals | $[75]/person | $[300] | Under $50: self-approve |
| Client entertainment | $[150]/event | $[500] | Always |
| Travel (domestic) | Per diem or actual | $[2,000]/trip | Always — pre-approval |
| Travel (international) | Per diem or actual | $[5,000]/trip | Always — pre-approval |
| Professional development | $[500]/event | $[1,500]/year | Always |
| Home office equipment | $[500] one-time | $[1,000]/year | Over $200 |

### Pre-Approval Required
The following expenses ALWAYS require pre-approval regardless of amount:
- Travel bookings (flights, hotels)
- Client entertainment over $[75]
- Any single purchase over $[200]
- Recurring subscriptions over $[50]/month
- Conference or event registration

Approval Workflow

### Approval Process

| Expense Amount | Approver | Timeline |
|---------------|---------|----------|
| Under $[50] | Self-approved | Submit receipt within 5 business days |
| $[50]-$[200] | Direct manager | Approved within 3 business days |
| $[200]-$[1,000] | Department head / Founder | Approved within 5 business days |
| Over $[1,000] | Founder / CEO | Pre-approval required |

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Phase 3: Rules and Procedures

Receipt and Documentation Requirements

### Documentation Requirements

- **Receipts required for:** All expenses over $[25]
- **Receipt format:** Digital photo or PDF (paper receipts not required if digital available)
- **Receipt must include:** Date, vendor name, amount, items/description
- **Missing receipt:** Provide a written explanation and manager sign-off. Repeated missing receipts may delay reimbursement.

### Submission Deadline
- Expenses must be submitted within [30] days of purchase
- Late submissions (30-60 days) require manager approval
- Submissions over 60 days old will not be reimbursed without VP/Founder exception

Reimbursement Process

### Reimbursement

- **Submission method:** [Expense software / email / spreadsheet]
- **Reimbursement cycle:** [Bi-weekly with payroll / monthly on the 15th]
- **Processing time:** Approved expenses reimbursed within [10] business days
- **Method:** [Direct deposit / added to payroll / corporate card]

What Is NOT Reimbursable

### Non-Reimbursable Expenses

- Personal purchases of any kind
- Alcohol (unless pre-approved for client entertainment)
- Traffic violations, parking tickets, or legal fines
- Pet care or childcare during travel
- First-class or business-class airfare (unless pre-approved for flights over 6 hours)
- Gym memberships or personal wellness (unless part of benefits package)
- Political contributions or charitable donations
- Expenses for family members or non-employees

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Phase 4: Policy Document

Final Policy Template

## [Company Name] Expense Reimbursement Policy

### Purpose
This policy establishes guidelines for business expenses incurred by
[Company] team members. The policy ensures expenses are reasonable,
properly documented, and reimbursed promptly.

### Scope
Applies to all full-time employees, part-time employees, and
authorized contractors of [Company].

[Insert Phase 2 categories and limits]
[Insert Phase 3 rules and procedures]

### Policy Violations
Violations include submitting personal expenses, falsifying receipts,
or repeatedly exceeding limits without approval. Violations may result
in delayed reimbursement, repayment requirements, or disciplinary action.

### Policy Updates
This policy is reviewed [annually]. Changes communicated [30] days
before taking effect.

### Acknowledgment
I have read and understood this expense policy.

Name: _______________
Date: _______________
Signature: _______________

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Example: 8-Person Remote Startup

Key provisions: Self-approval under $50, founder approval over $50. Software under $50/mo self-approved. $500/year professional development budget. Home office stipend of $500 one-time for new hires. Monthly meal allowance of $100 for team events. Receipts required over $25. Reimbursed with bi-weekly payroll.

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Anti-Patterns

• No policy at all — "just be reasonable" works until someone expenses a $300 dinner. Write it down.
• Overly restrictive — requiring approval for a $10 Uber ride wastes everyone's time. Set sensible thresholds.
• Slow reimbursement — employees floating company expenses for 60+ days breeds resentment. Reimburse within 2 weeks.
• Inconsistent enforcement — if the policy applies to everyone, enforce it for everyone. Including founders.
• No per-diem option for travel — per-diem rates eliminate receipt-chasing for meals during travel. Consider offering it.

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Recovery

• No expense tracking system: Start with a shared spreadsheet template. Upgrade to expense software (Expensify, Ramp) when team exceeds 10 people.
• Team already has bad habits: Announce the new policy with a 30-day grace period. After that, enforce consistently.
• Contractors vs. employees: Contractor expenses should be included in their contract rate, not reimbursed separately, unless the contract specifies otherwise.
• International team: Set per-diem rates by country and accept expenses in local currency with conversion at time of purchase.