Expense claims made simple with step-by-step guidance

Expense claims are the formal process through which employees seek reimbursement for business-related costs they've personally covered. Most organizations establish clear expense policies that outline reimbursable categories such as travel, client meals, professional development, and necessary supplies. These policies typically include spending limits, documentation requirements, and approval procedures to validate business expenses.

The distinction between personal and business expenses depends on necessity and purpose. Legitimate business expenses include costs reasonably required for performing professional duties or directly benefiting the company. A business dinner with a prospective client qualifies as appropriate, while upgrading to luxury accommodations when standard options would suffice falls into personal territory. Industry publications constitute valid expenses, while personal subscriptions generally don't qualify, even with occasional business relevance.

Maintaining accurate expense claims serves as more than good bookkeeping; it fulfills important regulatory requirements with real consequences. Companies face potential tax audits, penalties, and additional liabilities when expenses lack proper documentation, as the IRS requires sufficient records supporting deductions. Employees might experience delayed reimbursements or even termination in cases of deliberate falsification. Accurate expense reporting also reflects company values, with transparent systems creating environments where employees feel fairly compensated without subsidizing business operations themselves.

Expense claims fall into several distinct categories, each with its own documentation requirements and reimbursement protocols. Understanding these differences helps employees navigate the submission process while enabling organizations to maintain appropriate financial controls.

Business expense claims

Business expense claims encompass the everyday operational costs employees incur while performing duties on behalf of the company. Office supplies represent a common category, ranging from notebooks and pens to specialized equipment like ergonomic keyboards or monitor stands. Software subscriptions have grown increasingly prevalent, with employees purchasing productivity tools, design applications, or industry-specific programs.

Training expenses are another significant business expense category, including conference registrations, workshop fees, certification costs, and educational materials. Most organizations require itemized receipts for these expenditures, preferably with clear business justification noted. Some companies implement pre-approval processes for larger purchases, typically those exceeding predetermined thresholds like $100 or $250.

A finance director at a midsize marketing firm notes, “We encourage employees to consolidate smaller purchases when practical. Twenty separate $5 receipt submissions create an administrative burden that outweighs their individual value.”

Travel and accommodation claims

Travel expenses represent some of the largest and most complex reimbursement categories for many organizations. Airfare policies often specify booking windows (typically 14-21 days in advance), seat class restrictions, and preferred booking channels. Lodging expenses generally follow per-night limits that vary by geographic location, with higher allowances for major metropolitan areas.

Rental car reimbursements typically cover mid-size vehicles and associated fuel costs, though many organizations now encourage rideshare services for shorter trips. Incidental travel expenses such as baggage fees, airport parking, and ground transportation require particular attention to documentation.

Most companies require original receipts for all travel expenses exceeding nominal amounts (typically $25). Corporate travel cards have simplified this process for many organizations, creating automatic expense reports while reducing the financial burden on employees who might otherwise float significant costs before reimbursement.

Medical and healthcare claims

Medical expense claims typically fall outside standard business expense systems, instead routing through dedicated healthcare reimbursement programs such as Flexible Spending Accounts (FSAs) or Health Reimbursement Arrangements (HRAs). These programs allow employees to receive tax-advantaged reimbursement for qualified healthcare expenses not covered by insurance.

Documentation requirements for medical claims are particularly stringent, requiring detailed receipts showing service dates, provider information, specific treatments, and proof of payment. Explanation of Benefits (EOB) forms from insurance providers often serve as essential supporting documentation. Unlike business expenses, medical claims typically face strict submission deadlines tied to tax years or plan-specific time frames.

Entertainment and meal claims

Business meal expenses remain among the most scrutinized expense categories. Internal Revenue Service regulations require documentation of not just the cost but the business purpose and attendees. Organizations typically establish per-meal limits that vary by meal type (breakfast, lunch, dinner) and location.

Client entertainment expenses face similar requirements, with many companies implementing stricter approval processes following tax law changes that eliminated or reduced deductibility for certain entertainment categories. Most organizations now require explicit justification connecting entertainment expenses to specific business outcomes.

Corporate events and team-building activities typically follow separate approval channels, often with higher spending thresholds but requiring advance budget approval rather than after-the-fact reimbursement. Companies increasingly recognize legitimate business purposes behind team cohesion activities, though documentation of the business purpose remains essential for proper accounting treatment.

The expense claim submission process often represents a significant administrative burden for employees and finance departments alike. A methodical approach streamlines reimbursement while reducing the likelihood of rejected claims. Organizations with clearly defined submission processes typically process reimbursements more efficiently and with fewer complications.

Step 1: Collect and organize your receipts

The foundation of any successful expense claim begins with proper receipt management. Physical receipts should be photographed or scanned immediately after acquisition, with digital copies stored in dedicated folders organized by date, project, or expense category. Many professionals recommend using business expense tracking applications that capture receipt information at the point of purchase.

The moment of transaction is the best opportunity for accurate documentation. Waiting even a few days diminishes your ability to recall important contextual details that might be required later.

Common mistakes at this stage include failing to request itemized receipts, accepting digital confirmation emails that lack sufficient detail, and losing receipts for small-value items that collectively represent significant amounts. Hotel folios, in particular, require careful review as they often contain both reimbursable and non-reimbursable charges on a single statement.

Step 2: Review your company's expense policy

Before submitting any claim, employees should thoroughly review their organization's expense policy with particular attention to spending limits, per diems, required approvals, and exclusions. Most corporate policies establish per-meal limits, mileage reimbursement rates, and acceptable accommodation standards that vary by location and circumstance.

Policy compliance remains the primary reason for claim rejection, with many denied reimbursements stemming from violations of established guidelines rather than documentation issues. Special attention should be paid to alcohol purchases, upgraded accommodations, and entertainment expenses, which frequently carry specialized requirements.

A common oversight involves failing to recognize that different types of expenses may have different submission deadlines. While routine business expenses might have a standard 30-day submission window, expenses related to fiscal year-end or specific projects often face accelerated timelines that require prompt attention.

Step 3: Complete the expense claim form

Modern expense claim forms, whether digital or paper-based, typically require detailed information across several categories:

• Header information: Employee details, department codes, submission date, and approval routing
• Expense categorization: Proper classification using company-specific expense codes
• Date and location: When and where each expense occurred
• Business purpose: Clear justification connecting the expense to specific work activities
• Payment method: Whether corporate card, personal credit card, or cash was used
• Currency information: Original currency and exchange rates for international expenses

The business purpose field deserves particular attention as it frequently determines tax deductibility. Vague descriptions like “client meeting” provide insufficient context compared to specific explanations such as “Quarterly planning discussion with Northeast regional distribution partner regarding Q3 product launch.”

Many organizations reject claims with incomplete taxation information, particularly missing tax identification numbers for vendors or inadequate VAT documentation for international expenses. These details often cannot be added retroactively, necessitating careful attention during initial submission.

Step 4: Verify and submit your claim

Electronic submission methods and automated expense reporting have largely replaced paper processes at most organizations, offering advantages in tracking, approval routing, and record retention. Many applications employ optical character recognition (OCR) to extract key information from receipt images, though human verification remains essential.

Before submitting claims through online tools, take time for proper verification. Make sure receipt images are clear and fully visible, avoiding blurry photos or partial captures. Double-check that you've selected accurate expense codes for each item, properly reflecting what the expense actually was. Verify that your submission includes all necessary approvers to avoid unnecessary delays. Remember to include additional documentation for any unusual expenses that might need additional context or justification.

Paper-based processes, where still used, require additional diligence regarding receipt attachment and routing. Stapling rather than paper-clipping receipts reduces the risk of separation during processing, while photocopy retention provides insurance against lost submissions.

A common verification misstep involves inadequate corporate card reconciliation, leading to duplicate submissions or, conversely, missing reimbursements for legitimate expenses.

Step 5: Track and follow up on your submission

Most finance departments establish standard processing timelines, typically ranging from 5 to 15 business days depending on approval requirements and payment cycles. Employees should note confirmation numbers or submission identifiers when provided, using them for any subsequent inquiries.

Tracking becomes particularly important for high-value claims or time-sensitive expense reimbursements. Many organizations provide status updates through automated notifications, while paper-based processes might require direct follow-up with finance personnel after a reasonable processing interval.

Finance professionals recommend maintaining a personal log of submitted expenses with expected reimbursement dates and actual payment receipts. This practice not only facilitates follow-up for delayed claims but also provides valuable documentation for personal financial records and potential tax implications.

A frequent tracking error involves assuming that submission equals approval. Employees often mark expenses as “complete” mentally once submitted, overlooking the need to monitor for questions, additional documentation requests, or approval bottlenecks that might delay reimbursement.

Once submitted, expense claims enter a structured review process designed to balance prompt reimbursement with appropriate financial controls. Understanding this workflow helps employees set realistic expectations and prepare claims that move efficiently through each stage.

Initial review

Most organizations employ a multi-tier approval approach that begins with managerial review. The immediate supervisor typically examines the business purpose, verifying that expenses relate directly to authorized activities. This first-level reviewer focuses primarily on policy compliance rather than procedural details, confirming that expenditures fall within budget parameters and departmental guidelines.

Initial review generally takes 1-3 business days but can extend longer during busy periods such as month-end or when key approvers are traveling. Claims submitted with clear business context move through this stage more quickly than those requiring additional explanation.

To facilitate faster initial approvals, proactively communicate with managers about upcoming significant expenses. A brief email alerting them to forthcoming travel claims, for example, creates awareness that expedites review when formal submission arrives. Including contextual information such as meeting notes or project references alongside receipts eliminates common reasons for approval delays.

Validation of receipts and documents

After managerial approval, claims proceed to financial validation where accounting personnel examine documentation details. This phase involves confirming receipt dates match claimed expense periods, verifying the mathematical accuracy of totals, and ensuring compliance with tax regulations.

Finance reviewers pay particular attention to high-risk categories such as entertainment, gifts, and travel upgrades. They verify that receipt details align with company policy limitations and include required substantiation. International expenses receive additional scrutiny regarding currency conversion documentation and compliance with local tax requirements.

Document validation typically requires 2-5 business days, with complexity significantly impacting processing speed. Clear, complete submissions move efficiently, while claims requiring additional information face extended timelines with each clarification cycle adding days to the process.

Complete documentation bundled with initial submission prevents validation delays. Including conference agendas, participant lists, or project references alongside receipts demonstrates thoroughness and professionalism. Understanding what finance teams look for — such as itemized receipts rather than credit card slips — helps avoid common validation pitfalls.

Final approval and reimbursement procedure

Following successful validation, claims route to final approvers determined by organizational hierarchy and amount thresholds. Senior managers typically review larger amounts, while routine expenses might receive automatic approval after passing validation checks.

Upon final approval, the reimbursement process begins. Most organizations batch expense payments on regular cycles, typically weekly or bi-weekly, though high-value claims might receive expedited processing. Direct deposit has largely replaced paper checks, reducing delivery delays and enabling more predictable reimbursement timing.

This final stage generally takes 3-7 days from validation completion to payment, though payment cycle scheduling creates natural processing intervals. Claims submitted just after a payment run typically face longer waits than those arriving immediately before processing dates.

Strategic timing of submissions can expedite reimbursement. Understanding your organization's payment cycles allows filing that minimizes wait times between approval and actual reimbursement. For urgent reimbursements, a respectful follow-up after the standard processing window provides a gentle reminder while showing understanding of established procedures.

Knowing why expense claims face rejection helps employees avoid issues that delay reimbursement. Finance departments typically cite several recurring issues that prompt claim denials or returns for correction.

Missing documentation or receipts

Incomplete documentation is the leading cause of claim rejections. Many organizations require itemized receipts for expenses above nominal thresholds, typically $25 or $50. Credit card statements alone generally fail to satisfy this requirement as they lack the itemization needed for proper expense categorization and tax compliance.

Digital receipt images presenting partial information cause frequent rejections. Common problems include cut-off totals, missing vendor information, or illegible dates. Hotel folios often generate rejections when only the summary page is submitted without the itemized breakdown showing room rates, taxes, and incidental charges.

To avoid these rejections, capture full receipt images immediately after purchase, ensuring all edges appear in frame. For longer receipts, take multiple images that show overlap between sections. Store digital receipts in dedicated folders organized by trip or expense category for easy retrieval. When receipts are unavailable, promptly complete missing receipt forms with detailed explanations rather than delaying the entire claim submission.

Incorrect or incomplete information

Information accuracy presents another significant rejection trigger. Claims often return to employees when expense dates don't match receipt documentation or when incorrect cost centers receive allocation. Expense forms with missing employee identification information or approval routing details face automatic system rejections before review even begins.

Currency conversion errors frequently slow international expense claims. Rejections occur when exchange rates lack documentation or when personal calculation errors create discrepancies between receipt amounts and claimed totals.

To prevent information-related rejections, review claims thoroughly before submission, verifying that dates, amounts, and business expense categories align with supporting documentation. Use expense calculation tools rather than manual calculations when converting currencies. Double-check that all required fields contain appropriate information, particularly focusing on project codes or client identifiers that enable proper cost allocation.

Expense violations and non-compliance with company policies

Policy violations constitute the third major rejection category. Common issues include expenses that exceed authorized limits, purchases from non-approved vendors, or submissions that fall outside allowed timeframes. Many organizations enforce strict deadlines, particularly for fiscal year-end expenses or when external client billing depends on prompt expense reporting.

Travel policy violations frequently trigger rejections, particularly for room rates exceeding authorized limits, flight-class upgrades without approval, or meal expenses that surpass per-diem allowances. Entertainment expenses face particular scrutiny regarding attendee documentation and business purpose validation.

To avoid policy-related rejections, maintain current knowledge of company expense guidelines, particularly for frequently changing areas like per-diem rates or mileage reimbursements. When exceptional circumstances require policy deviation, secure written pre-approval before incurring the expense rather than seeking forgiveness afterward. Document business justification thoroughly for borderline expenses, explaining how the expenditure directly relates to business outcomes.

Organizations that handle expenses effectively strike a balance between employee needs and financial oversight. The most successful companies have moved away from rigid, complicated processes toward more thoughtful approaches that reduce frustration while maintaining proper controls.

Set clear and enforceable expense policies

Good expense management starts with a well-crafted expense policy that employees can easily understand and follow. The best policies avoid unnecessary complexity while clearly outlining spending guidelines for different expense types. They establish reasonable limits that reflect real business conditions rather than arbitrary restrictions that employees feel compelled to work around.

Smart policies recognize that costs vary by location, particularly for hotels and meals. Instead of applying the same limits everywhere, forward-thinking companies create tiered allowances that account for these regional differences.

For policies to work, they must be easy to find and understand. Companies with high compliance rates keep their guidelines in central, searchable locations with clear examples showing proper application. They use straightforward language focused on principles rather than exhaustive rules.

The most effective organizations develop policies collaboratively, including input from frequent travelers and department leaders. This participation creates natural policy advocates within business units and ensures guidelines align with operational needs.

Use automated expense management software

Technology investments pay significant dividends in expense management efficiency. Modern expense management tools streamline the entire process from capturing receipts through reimbursement, cutting administrative work while strengthening compliance.

Mobile apps with receipt-scanning features eliminate paper handling and capture expense data immediately. The software typically extracts key information automatically, reducing manual entry errors while creating digital records that won't get damaged or lost.

How well expense tools connect with other applications matters greatly. Software that links with corporate cards, accounting platforms, and approval workflows creates seamless expense management automation, simplifying expense reconciliation and enabling real-time expense visibility instead of the delayed view that manual processes provide.

The most effective organizations implement tools that check policy compliance during submission rather than later review. These preventative measures reduce rejection rates by catching issues when they're still easy to correct.

Establish regular employee training sessions

Education significantly improves expense management outcomes. Effective organizations conduct regular training that goes beyond reviewing policies to include practical submission guidance, documentation tips, and ways to avoid common mistakes.

Smart training recognizes different audience needs. New employees need comprehensive orientation, while experienced staff benefit from focused updates on recent policy changes or emerging problem areas. Finance teams likewise need specialized training on consistent review practices and handling borderline cases.

Successful training uses realistic scenarios rather than abstract rules, helping employees understand how to apply policies in context. Many include actual rejection examples (with identifying details removed), turning compliance failures into learning opportunities.

Implement routine compliance audits

Strategic audit processes complete robust expense management programs. Rather than framing audits as punitive measures, effective organizations present them as improvement opportunities that benefit everyone.

Focus on where issues are the most likely to occur. This might include newer employees still learning procedures, departments with past compliance challenges, or expense categories particularly prone to confusion.

Effective audits examine patterns rather than isolated transactions, identifying widespread issues that need policy clarification or procedural adjustments. When audits reveal the same errors across multiple employees, the focus shifts to finding root causes rather than individual correction.

Organizations with mature expense management establish clear consequences while distinguishing between honest mistakes and deliberate policy violations. This balanced approach maintains compliance without creating fear, recognizing that most employees genuinely want to handle expenses properly.

Brex has reimagined the expense claim process for modern businesses. What once involved paper receipts, manual data entry, and lengthy approval cycles now happens in an AI-powered digital experience. By combining corporate cards with smart technology, Brex eliminates the traditional separation between spending and reporting. Transactions automatically appear in the expense management interface, where they match with receipt images captured by employees' phones.

For employees, Brex dramatically simplifies expense reporting. A quick photo of a receipt is often all that's needed, as the app extracts merchant names, amounts, and dates automatically. The machine learning behind Brex grows smarter over time, correctly categorizing expenses based on previous patterns and merchant information. This intelligence helps prevent the misclassifications that commonly lead to rejected claims.

Finance teams see equally impressive benefits with Brex. The hours previously spent reconciling credit card statements with expense reports simply disappear. With transactions flowing directly from corporate cards to the expense platform, finance professionals typically save 10-15 hours monthly on manual review tasks. Policy enforcement also improves as Brex flags potential violations at the point of submission rather than days or weeks later during audit reviews.

Brex addresses real-world expense management challenges through thoughtful features like automated mileage tracking, receipt-free transactions for smaller purchases, and customizable approval routing. What sets Brex apart, however, is how it fits into existing workflows. Unlike tools that require significant behavior changes, Brex's intuitive design means employees actually use it, ensuring organizations realize the full promise of automated expense management.

Effective expense management represents a critical business function with substantial impact on organizational financial health. This guide has covered the essential components of expense claims, from basic definitions to submission processes and approval workflows. Clear policies, proper documentation, and attention to procedural details can dramatically reduce rejection rates while accelerating reimbursement timelines. For employees, understanding these elements transforms a potentially frustrating administrative task into a straightforward process with predictable outcomes.

The business case for improving expense management extends to enhanced cost visibility, stronger regulatory compliance, and more accurate financial reporting. Small inefficiencies in expense handling multiply across hundreds or thousands of transactions, creating significant financial leakage and administrative burden. Organizations that adopt modern expense management software typically report improvements in both financial outcomes and operational efficiency, enabling finance teams to redirect attention from transaction processing to more strategic activities.

Brex offers a particularly elegant solution to the expense management challenges outlined in this guide. The integrated approach combines a corporate card program with automated expense tracking, eliminating the traditional separation between spending and reporting. The Brex platform extends beyond simple expense management to include automated bill payment software that streamlines accounts payable workflows. Brex accounting automation software further reduces manual workload by syncing financial data across platforms and generating customized reports.

Candice Chow-Gamboa, Chief of Staff at Heirloom, which achieves 96% employee expense compliance with Bre, says: “Brex gives employees the freedom and accessibility to do their job effectively. We're saving several hours on expenses every month and employees get reimbursed faster. With less busywork, we have time to focus on things that really matter.”

For businesses looking to turn expense management into a strategic edge, signing up for Brex provides an immediate path to modernizing your financial operations.