Help Center / Expenses Reimbursements

Understanding Expense Policies

Your company sets rules about what expenses can be reimbursed, how much you can spend, and what documentation you need. Light helps you follow these policies so your expenses get approved faster.

What Are Expense Policies?

Expense policies are your company's guidelines for spending. They typically cover:

  • What's reimbursable: Which types of expenses the company will pay back (e.g., travel, meals, office supplies)
  • Spending limits: Maximum amounts per category or per transaction (e.g., $50 max per meal, $2,000 max per week)
  • Documentation requirements: Whether you need receipts, and what kind (digital, paper, email)
  • Approval chains: Who needs to approve what (your manager, finance team, etc.)
  • Special rules: Restrictions for certain types of expenses (e.g., alcohol only for client entertainment, not personal meals)

In Light, your admin stores these policies as documents. When you submit an expense, Light's AI reviews it against those policy documents.

Checking Your Company's Policies

Your admin manages policy documents in Light under Settings → Guardrails → Policies. As an employee, the easiest way to check a policy is to ask Light's AI assistant, for example:

  • "What's our policy on client meals?"
  • "Do I need a receipt for expenses under $25?"
  • "Can I expense a hotel upgrade?"

The assistant answers based on your company's policy documents and shows you which policy the answer comes from.

Can't find the answer? Ask your manager or admin. They can send you a copy of the policy or point you to where it's documented.

How Light Reviews Your Expenses

When you submit an expense, Light's AI reviews it against your company's policy documents:

  • Compliant: If your expense follows the policies, it can be approved automatically and moves on to payment.
  • Non-compliant: If the AI finds a potential policy issue, your expense is sent to your finance team's inbox for manual review.

Common reasons an expense gets flagged:

  • Amount exceeds a limit described in the policy
  • The type of expense isn't reimbursable under the policy
  • Missing receipt when one is required
  • Alcohol on a personal meal (if only allowed for client entertainment)

What Happens If You Violate a Policy?

If the AI review flags your expense as non-compliant, it isn't rejected automatically. Instead, it goes to your finance team, who will review it and either:

  • Approve it anyway (e.g., if there's a valid reason for the exception)
  • Reject it and ask you to fix and resubmit it

It's faster to follow policies the first time—compliant expenses can be approved without waiting for manual review.

Personal Expenses & Non-Reimbursable Items

Your company won't reimburse personal expenses. If you accidentally submit one, it will be flagged during review and likely rejected. Common non-reimbursable expenses include:

  • Groceries for personal use
  • Gym memberships
  • Personal entertainment
  • Commuting costs (unless your company has a specific travel policy)

When in doubt, ask your manager before you submit.

Different Policies for Different Entities

If your company operates multiple entities, policies can apply to specific entities. Light's AI reviews your expense against the policy documents that apply to your entity—you don't need to figure out which policy is relevant.

Policy Updates

Your admin might update policy documents from time to time (e.g., raising limits during budget season, adding new rules). Your old expenses won't be affected—new submissions are reviewed against the current policies.

Tips for Staying Compliant

  • Know your company's policies: Ask Light's AI assistant or read your company's policy documents before you spend
  • Check expense categories: Make sure you're using the right category for your purchase
  • Keep good receipts: Most policies require them, and Light needs them to read the details
  • Submit soon after purchase: Expenses are easier to document while details are fresh
  • When in doubt, ask: If you're not sure if something's reimbursable, ask Light's AI assistant or your manager before you submit

Questions About a Policy?

If a policy doesn't make sense or seems unclear:

  1. Ask Light's AI assistant—it answers based on your company's policy documents and shows the source
  2. Ask your manager or admin what it means
  3. If you think it's a mistake, contact your finance team

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