Finance
Corporate Cards vs. Expense Reimbursements: How to Choose
Most companies need both. Compare corporate cards and expense reimbursements by spend category, plus the IRS and CRA rules that set your...
What to include
- A clear submission deadline: typically 60 days after the expense is incurred.
- Repayment requirements for advances: no more than 120 days.
- Per-diem limits based on GSA/JTR tables, tied to ZIP code.
- Mileage reimbursement based on the IRS standard rate.
- Documentation rules: always include a receipt or note why one is missing.
- Retention period: retain records for 7 years, even if an employee leaves.
- Local rules: include policies specific to your state, especially California and Illinois.
- Exception handling: require a written explanation for anything outside the rules.
What to avoid
- Creating too many categories for employees to choose from.
- Requiring multiple levels of approval for low-dollar claims.
- Forcing every department to follow the same exact process.
If you're using ExpensePoint for your expense reporting software, these policy elements can be configured directly in the system. Expense categories, submission deadlines, and exception rules can all be built into your workflows, reducing the need to check each item manually. Rules can vary by department, location, or employee role so that you can avoid a one-size-fits-all policy.
Check out Expense Report Policy Best Practices (& How to Avoid Common Pitfalls) blog to learn more.
What to include
- Add dollar-based thresholds: for example, anything under $100 may only need one approver.
- Use checklists to confirm receipts and categories before submission.
- Add a column for "exceptions" and make comments mandatory to save time if someone does break the standard rule.
- Forward out-of-policy expenses to finance, not back to the employee.
If you're using software, automate these steps where possible. If you're using spreadsheets, set up data validation fields and use shared folders to prevent data loss.
ExpensePoint uses AI to assist with reading receipts and matching them to card transactions. Policy logic and exception handling are configurable and rules-based. You can define thresholds, require comments for flagged claims, and route approvals by department, all of which help reduce errors and time spent managing exceptions.
Key checklist:
- Use consistent file naming (e.g., YYYY-MM-DD_Dept_EmployeeName).
- Store receipts and approvals in the same folder, grouped by month.
- Use spreadsheet columns to track who submitted, who approved, and when.
- Keep a notes field for any policy exceptions or missing items.
- Maintain backups in cloud folders, USB, or an external drive, and audit your records every quarter.
Using ExpensePoint, audit logs, searchable approval records, and historical documentation are all built in. They support audit readiness by automatically capturing every interaction, including digital receipts, time-stamped approvals, comments, and submission status. All of this information is easily searchable and exportable by user, date, category, or department, making audits faster and less disruptive.
Steps to take this week:
- Share a short summary of your policy with all staff who submit expenses.
- Show approvers how to check for missing receipts and note exceptions.
- Choose one recent month and audit it: check for late submissions, missing items, or skipped steps.
- Review the results as a team: If an auditor requests supporting documentation, can you provide it within one business day?
What to fix now:
- Receipts that are missing notes.
- Approvals that weren't properly recorded.
- Any expenses that were submitted without being coded.
