Free Expense Policy Template for New Zealand

An Expense Policy sets clear rules for how employees can spend company money and claim reimbursements. It outlines approved business expenses, spending limits, and the proper steps for submitting expense claims - helping organizations maintain financial control and meet their tax obligations under NZ law.

A well-designed policy protects both the company and staff by preventing misuse of funds, ensuring GST compliance, and creating transparency around spending. It typically covers areas like travel costs, entertainment, office supplies, and other work-related purchases, while aligning with Employment Relations Act requirements and Inland Revenue guidelines.

Implement an Expense Policy when your business starts managing regular employee spending or reimbursements. This becomes especially important once you have staff traveling, entertaining clients, or making work-related purchases. As your team grows beyond 5-10 employees, tracking expenses without clear guidelines can quickly become chaotic.

The policy proves vital during tax audits, helping demonstrate proper financial controls to Inland Revenue. It's also essential when expanding operations, onboarding new staff, or dealing with increased business travel. Many NZ companies introduce their policy before their first major client entertainment event or when setting up corporate credit cards.

• Client Entertainment Policy: Focused specifically on business meals, events, and hospitality expenses, with detailed guidelines for client interactions and GST tracking
• Comprehensive Travel Policy: Covers all aspects of business travel, including accommodation, transport, and per diems
• General Office Expense Policy: Addresses day-to-day purchases like supplies, equipment, and minor expenses
• Corporate Card Policy: Details rules for company credit card usage, including spending limits and restricted purchases
• Project-Based Expense Policy: Tailored for managing costs within specific projects or client engagements

• Finance Managers: Create and maintain the Expense Policy, set spending limits, and oversee compliance with NZ tax requirements
• Company Directors: Review and approve the policy, ensuring it aligns with business strategy and risk management
• Employees: Follow policy guidelines when spending company money or claiming reimbursements
• HR Teams: Communicate policy updates, handle training, and address compliance issues
• Accounting Staff: Process expense claims, maintain records, and ensure GST compliance
• External Auditors: Review expense policies during financial audits to verify proper controls

• Current Practices: Review existing spending patterns and common expense types across your business
• Budget Limits: Determine appropriate spending thresholds for different expense categories and roles
• GST Requirements: Check current Inland Revenue guidelines for expense documentation and record-keeping
• Approval Chain: Map out who will authorize expenses at different levels
• Payment Methods: Decide which payment options (credit cards, cash, direct billing) you'll allow
• Claim Process: Plan your expense submission and reimbursement workflow
• Template Selection: Use our platform to generate a legally-sound policy that covers all essential elements

• Policy Scope: Clear definition of covered expenses and who the policy applies to
• Spending Limits: Specific monetary thresholds for different expense categories and roles
• GST Requirements: Rules for tax receipts and documentation aligned with IRD guidelines
• Approval Process: Detailed authorization procedures and delegation levels
• Claim Procedures: Step-by-step process for submitting and processing claims
• Prohibited Expenses: Clear list of non-reimbursable items and activities
• Compliance Statement: Acknowledgment of understanding and consequences of non-compliance
• Review Process: Timeframes for policy updates and amendments

An Expense Policy differs significantly from a Credit Policy in both scope and application. While both deal with financial controls, they serve distinct purposes in business operations.

• Primary Focus: Expense Policies manage employee spending and reimbursements, while Credit Policies govern lending terms and customer payment arrangements
• Target Users: Expense Policies apply to internal staff making business purchases, whereas Credit Policies regulate external customer relationships
• Compliance Requirements: Expense Policies must align with IRD guidelines for tax deductions and GST claims, while Credit Policies focus on financial services regulations
• Risk Management: Expense Policies control operational spending and prevent misuse of company funds, whereas Credit Policies protect against bad debt and manage customer default risks
• Documentation Needs: Expense Policies require receipt tracking and claim forms, while Credit Policies involve credit applications and payment terms