By KYN AI Advisory Team — AI implementation specialists, Singapore
A good expense claims policy fits on two pages and answers six questions: what can be claimed, what proof is needed, who approves, how foreign currency is converted, how long staff have to submit, and when they are paid. The template below covers all six for a company of 10 to 50 people. Copy it, replace the bracketed values with your own, and have a director sign it off. Without a written policy, every claim becomes a negotiation, and the founder becomes the policy.
Why does a company of 10 to 50 people need a written policy?
Below ten people, the founder sees every receipt. Above fifty, a finance team and a spend card programme usually exist. In between, claims arrive by WhatsApp photo, the approver is whoever is free, and the same taxi ride is claimed twice. Three costs follow:
- Leakage. Duplicate and personal items get paid because nobody checks.
- Tax risk. Claims without a valid receipt cannot support a deduction or a GST input claim. See how to scan receipts for GST claims in Singapore.
- Friction. Staff wait weeks for reimbursement because the process is undefined.
A policy removes the argument. It does not need to be strict. It needs to be clear.
What should the policy contain?
Eight sections. Each one is a short block in the template.
| Section | Question it answers | |---|---| | Scope | Who is covered, and which claims | | Claimable items | What the company pays for | | Not claimable | What it never pays for | | Evidence | What proof is required | | Limits and approval | Who signs off, up to what amount | | Foreign currency | Which amount is reimbursed | | Timing | Submission deadline and payout day | | Breaches | What happens on a false claim |
Template: expense claims policy
Replace anything in [brackets].
1. Scope
This policy applies to all employees and directors of [Company Pte Ltd]. It covers out-of-pocket spending for company purposes that the company reimburses. It does not cover spending on a company card, which follows the card policy.
2. Claimable items
The company reimburses reasonable costs incurred wholly for company business, including:
- client meetings and meals, with the client's name and the purpose stated;
- local travel: taxi or ride-hailing when public transport is not practical, and public transport otherwise;
- overseas travel approved in advance by [manager];
- software, tools and supplies under [S$200] per item, when not purchased through the company account;
- mobile or internet costs only if a written allowance exists;
- training approved in advance.
3. Not claimable
- personal meals, even during business hours, unless on approved overseas travel;
- fines, penalties and traffic summonses;
- alcohol outside client entertainment approved by [manager];
- gifts above [S$100] per person without prior approval;
- anything already paid by the company.
4. Evidence
Every claim needs:
- a tax invoice or receipt showing the supplier, date, amount and what was bought;
- a one-line purpose;
- for client meals, the names of attendees and the company.
A bank or card statement line alone is not evidence. If a receipt is lost, the claimant signs a missing-receipt declaration, and the approver decides. Three missing-receipt claims in a quarter trigger a conversation.
5. Limits and approval
| Claim total | Approver | |---|---| | Up to [S$300] | Direct manager | | [S$300] to [S$2,000] | Direct manager and [finance lead] | | Above [S$2,000] | A director |
Nobody approves their own claim. A director's claim is approved by another director.
6. Foreign currency
The reimbursed amount is the Singapore dollar amount actually charged to the claimant's card or account, as shown on the statement. If the receipt is in another currency and the statement is not available, the finance lead converts at the rate on [the transaction date from a named source]. See recording foreign-currency expenses in Singapore for the accounting side.
7. Timing
Claims are submitted within [30] days of the expense. Claims older than [60] days need director approval. Approved claims are paid on [the 5th and 20th] of each month. Claims submitted after the month-end cut-off are paid in the next cycle.
8. Breaches
A claim that is knowingly false, duplicated or personal is a disciplinary matter. The company may recover the amount from salary where the employment contract allows it.
Signed: [Director], [date]. Reviewed each [January].
How do you pick the right limits?
Set limits from your real claim history, not from a guess.
- Export the last six months of claims.
- Sort by amount. Note the value below which 80 to 90 percent of claims fall.
- Set the single-manager limit at that value.
- Set the director threshold at a figure that only a handful of claims a quarter exceed.
If the manager approval step becomes a rubber stamp, the limit is too low. If a director sees fifty claims a month, it is too low by a factor of ten.
How should the process run day to day?
A policy on paper does not change behaviour. The workflow does.
- The claimant photographs the receipt the same day and submits it with the purpose.
- The system reads the receipt: supplier, date, amount, currency, GST line.
- It checks for a duplicate against earlier claims by supplier, date and amount.
- It routes to the correct approver by amount.
- After approval, finance schedules payment on the next payout day.
- The claim and its receipt are filed against the ledger entry.
Steps 2, 3 and 6 are mechanical. They are where software removes the most time. Step 4 is a rule. Step 5 involves money and stays with a person. Our note on a custom expense tracking system shows how the pieces connect.
What controls catch the common problems?
- Duplicates. Match on supplier, date, amount and the receipt's file fingerprint.
- Split claims. Flag several claims from one person to one supplier within two days that together exceed a limit.
- Round numbers. A run of round-figure claims without receipts deserves a look.
- Weekend and holiday spending. Not wrong, but worth a glance when the purpose is vague.
- Same approver, same claimant. Report on pairs that always approve each other.
Where KYN fits
KYN builds receipts-to-ledger systems that run in your own cloud account. A finance software startup went to production in six weeks with receipts, claims and GST handling on Google Cloud. In our own books, bills arrive from Gmail into the ledger and every action is logged with the actor. Payments and filings wait for a named person.
The first 14 days are a review and a full build ships in under 90 days. See finance systems.
Frequently asked questions
Should a company reimburse mobile phone bills?
Only with a written allowance. A fixed monthly amount per role is easier to administer and audit than claiming a share of each bill. State the amount in the policy.
Who approves a director's expense claim?
Another director. If the company has a single director, a shareholder or the external accountant should review and record the approval. The point is that no person approves their own claim.
How long should staff have to submit a claim?
Thirty days is common for a company of this size. It is short enough that receipts exist and memories hold, and long enough to cover a trip and a holiday. Set a longer limit only for overseas travel.
Checked 30 October 2026.
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