Help Center / Expenses Reimbursements

Understanding Expense Policies

What is this page about: What expense policies are, where to check your company's rules, how automated policy review works, and what happens when an expense doesn't comply.

On this page

  • What are expense policies?
  • Where to check your company's policies
  • How expenses get reviewed
  • What happens if you violate a policy?
  • Personal expenses & non-reimbursable items
  • Policies across multiple entities
  • What happens when policies are updated
  • Tips for staying compliant
  • Frequently asked questions
  • Related articles

Your company sets rules about what expenses can be reimbursed, how much you can spend, and what documentation you need. These rules are called expense policies, and Light is built to help you follow them so your expenses get approved faster.

What are expense policies?

An expense policy is your company's written rule set for spending. Expense policies typically define:

  • What's reimbursable: which expense types the company will pay back (for example, travel, meals, office supplies)
  • Spending limits: maximum amounts per category or per transaction (for example, $50 max per meal, $2,000 max per week)
  • Documentation requirements: whether you need a receipt, and what kind (digital, paper, email)
  • Approval chains: who needs to approve what (your manager, finance team, etc.)
  • Special rules: restrictions on specific expense types (for example, alcohol only for client entertainment, not personal meals)

Your admin stores these policies as documents in the app. If your company has a published expense-submission workflow that includes the Agent review step, submitted expenses are checked against those documents automatically. If not, every expense goes to your finance team for manual review instead.

Where to check your company's policies

Your admin manages policy documents under Settings (gear icon) → Guardrails → Policies.

As an employee, the fastest way to check a policy is to ask the built-in AI assistant a direct question, for example:

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

It answers based on your company's actual policy documents.

If the assistant can't answer, or you want to read the policy yourself: ask your manager or admin. They can send you a copy or point you to where it's documented.

How expenses get reviewed

If your company has a published expense-submission workflow that includes the Agent review step, each expense you submit is checked against your company's policy documents and sorted into one of two outcomes:

  • Compliant: the expense follows policy, so it's approved automatically and moves straight to payment.
  • Non-compliant: a potential policy issue is found, so the expense is sent to your finance team's inbox for manual review.

If your company hasn't set up this review step, every expense goes straight to the finance team's inbox for manual review, regardless of whether it follows policy.

Common reasons an expense gets flagged as non-compliant:

  • The amount exceeds a limit set in the policy
  • The expense type isn't reimbursable under the policy
  • A required receipt is missing
  • Alcohol appears on a personal (non-client) meal

The specific reason is generated from your company's actual policy documents each time, so you may occasionally see one not listed here. Check with the assistant if a flag doesn't make sense.

What happens if you violate a policy?

A non-compliant flag sends your expense to your finance team rather than rejecting it. They will do one of two things:

  • Approve it anyway: for example, if there's a valid reason for the exception
  • Reject it and ask you to fix and resubmit it

Compliant expenses skip this manual wait, so following policy the first time is the fastest path to reimbursement.

Personal expenses & non-reimbursable items

Only business expenses that match your company's policy get reimbursed. If you accidentally submit a personal expense, it's flagged the same way any other policy violation would be. Light has no special detection for "personal" versus "business", so whether it's ultimately rejected comes down to how your policy is worded.

Common non-reimbursable expenses:

  • 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.

Policies across multiple entities

If your company operates multiple legal entities, policies can apply to specific entities. The correct policy documents are applied automatically based on your entity, so you don't need to figure out which one applies to you. If no policy has been assigned to your entity yet, the expense skips automated review and goes straight to the finance inbox instead.

What happens when policies are updated

Your admin may update policy documents over time, for example raising spending limits during budget season or adding new rules. New submissions are reviewed against the current policy; expenses you already submitted keep the review they originally got and aren't affected retroactively.

Tips for staying compliant

  • Know your company's policies: check with the assistant, or read the policy documents directly, before you spend
  • Use the right expense category: this affects which policy rules apply
  • Keep good receipts: most policies require them, and clear documentation helps get expenses reviewed accurately
  • Submit soon after purchase: details are easier to document while they're fresh
  • Ask when unsure: if you're not sure whether something's reimbursable, check with the assistant or your manager before you submit

Frequently asked questions

How do I check what my company's expense policy says?

Ask the AI assistant a specific question (for example, "What's our meal limit?"), or ask your manager or admin for the policy document directly.

Are my expenses approved automatically?

Only if your company has a published workflow with the Agent review step enabled. In that case, compliant expenses are approved and move to payment automatically. Non-compliant expenses, and all expenses at companies without that step enabled, go to the finance team for manual review.

What happens if my expense breaks a policy?

Your finance team decides. A flagged expense goes to them, and they can approve it anyway or reject it and ask you to resubmit. It is never rejected automatically.

What if I accidentally submit a personal expense?

It gets flagged during review like any other policy violation. Whether it's rejected depends on your company's policy wording.

Do policy updates affect expenses I already submitted?

Only new submissions are affected going forward. Expenses you already submitted keep the review they originally got.

What if a policy doesn't make sense to me?

  1. Ask the assistant directly. It answers based on your company's policy documents
  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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