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Guide · Expense management

How to write an expense policy

Long expense policies fail because nobody reads them. A short one that the system enforces is more effective than a comprehensive one that lives in a shared drive.

Key takeaways
  • One page, written in plain language, enforced by the system where possible.
  • State the receipt threshold once and apply it automatically.
  • List what always needs approval rather than everything that does not.
  • Cover accidental personal purchases explicitly — they will happen.
  • Review annually and after any significant change in how the company works.

Why short policies work better

A policy is only effective if the person about to spend money can recall what it says. Twelve pages of category-by-category rules cannot be recalled, so in practice the rules live in the reviewer's head and get applied inconsistently.

One page can be recalled, and what cannot be recalled can be enforced by the card programme itself.

The six sections

SectionWhat it says
PrinciplesSpend as if it were your own money; if unsure, ask before rather than after
What you can buyCategories that need no approval, with a per-transaction ceiling
What needs approvalThe short list: above a threshold, new vendors, specific categories
DocumentationThe receipt threshold, how to submit, and the deadline
Never reimbursableThe short, specific list — vague prohibitions are unenforceable
When something goes wrongPersonal purchases, lost receipts, lost cards, and who to ask

The section most policies forget

Someone will use the company card for a personal purchase by accident. It is inevitable, and a policy that does not address it turns a trivial mistake into an uncomfortable conversation about intent.

Write the process down in advance: flag it immediately, mark it as personal, repay through an agreed route. Then it is administration rather than an incident.

  • State how to flag a personal purchase and by when.
  • State the repayment route — payroll deduction or direct transfer.
  • Make clear that prompt disclosure is expected and not penalised.
  • Distinguish explicitly between error and deliberate misuse.

Employee cards reference

Illustration of an expense pipeline from transaction to accounting export with a receipt completeness meter Close EXPENSE PIPELINE Transaction Receipt Coding Export MISSING RECEIPTS 6 of 412 transactions this period 98%

Setting thresholds

Two numbers do most of the work: the receipt threshold and the approval threshold. Both should be set from your own data rather than copied from another company.

For receipts, find the level below which chasing documentation costs more than the risk it mitigates, then check it against local tax rules. For approvals, choose a level producing a handful of approvals per approver per week.

Keeping it current

Policies rot. Review annually, and immediately after any change in how the company works — a new country, a new travel pattern, a significant change in headcount.

Record the version and effective date on the document itself. Auditors ask which policy was in force during the period, and “the current one” is not an answer.

Frequently asked questions

A short travel section inside the same document usually works better than a separate policy. Two documents mean two things to keep current and two places people fail to look.

Keep the list short and specific: personal purchases, fines and penalties, anything illegal, and anything explicitly excluded by your tax rules. Vague prohibitions cannot be enforced consistently.

Make it one page, include it in onboarding, and enforce the important parts in the card programme so the policy and the system agree.

Keep reading

Sources and further reading

Every factual statement on this page is checked against primary documentation. Terms change frequently, so confirm details with the provider before acting on them.

  1. IRS Publication 463 — travel, gift and car expenses Used for statements about expense substantiation and record keeping in the United States.
  2. FASB Accounting Standards Codification Reference point for accrual, expense recognition and close-process statements.
  3. Brex Support Center Official help documentation, including account access and card administration topics.

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Product names, features and terms referenced here belong to their respective owners and change over time. Verify anything decision-critical with the official provider.

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