������Ƶ

An Expense Policy sets clear rules for how employees can spend company money and get reimbursed, following Saudi labor laws and Sharia principles. It covers everything from business travel and meals to office supplies and client entertainment, helping organizations maintain financial control while staying compliant with Zakat requirements and local tax regulations.

These policies protect both employers and staff by establishing spending limits, approval processes, and documentation requirements for expenses. Good expense policies in Saudi companies typically include guidelines for digital receipts, rules about using company credit cards, and specific procedures for handling cash advances - especially important given the Kingdom's growing shift toward digital payments and strict financial oversight.

Companies need an Expense Policy from day one of operations in Saudi Arabia, especially when employees start making business purchases or traveling. This policy becomes essential when your organization begins handling multiple expense claims, dealing with corporate credit cards, or managing travel arrangements under ZATCA guidelines.

Put your Expense Policy in place before financial complexity grows - it's much easier to establish clear rules early than to correct problematic spending patterns later. The policy proves particularly valuable during audits, when managing international transactions, and in situations requiring detailed expense tracking for Zakat calculations or tax compliance under Saudi regulations.

• Certificate Reimbursement Policy: Focused specifically on educational and professional development expenses, this variation covers tuition fees, certification costs, and exam-related expenses under Saudi labor development initiatives.
• General Business Expense Policy: Covers day-to-day operational expenses, including office supplies, local travel, and basic business costs in line with ZATCA requirements.
• International Travel Expense Policy: Specialized for companies handling cross-border business, addressing currency conversion, per diems, and international compliance requirements.
• Entertainment and Client Relations Policy: Details guidelines for business meals, gifts, and client entertainment within Sharia-compliant frameworks.

• Finance Directors & CFOs: Create and oversee the Expense Policy, ensuring alignment with Saudi tax laws and Zakat requirements while maintaining financial control
• HR Managers: Communicate policy details to staff, handle policy training, and manage integration with employment contracts
• Department Managers: Review and approve expense claims, ensure team compliance, and manage departmental budgets
• Employees: Submit expense claims, maintain proper documentation, and follow policy guidelines for business spending
• Compliance Officers: Monitor policy adherence, update guidelines per Saudi regulations, and conduct periodic audits

• Company Structure Review: Document your organization's departments, reporting lines, and typical business expenses
• Expense Categories: List all types of expenses including travel, entertainment, supplies, and training costs aligned with ZATCA guidelines
• Approval Limits: Define spending thresholds and authorization levels for different employee ranks
• Documentation Rules: Specify required receipts, forms, and digital submission processes that satisfy Saudi audit requirements
• Payment Methods: Detail accepted payment methods, corporate card policies, and cash advance procedures
• Compliance Check: Verify alignment with Sharia principles and Saudi labor laws before finalizing

• Policy Scope: Clear definition of covered expenses and applicable employees under Saudi labor law
• Spending Limits: Detailed authorization levels and maximum amounts for different expense categories
• Documentation Requirements: Specific rules for receipts and supporting documents meeting ZATCA standards
• Reimbursement Process: Timeline and procedures for expense claims and payments
• Compliance Statement: Reference to Sharia compliance and Saudi financial regulations
• Violation Consequences: Clear outline of disciplinary actions for policy breaches
• Review and Updates: Process for policy amendments and periodic reviews

An Expense Policy differs significantly from a Credit Policy in both scope and application, though both deal with financial controls. While an Expense Policy manages employee spending and reimbursements, a Credit Policy focuses on customer payment terms, credit limits, and debt collection procedures.

• Primary Focus: Expense Policies govern internal spending and reimbursement processes, while Credit Policies manage external financial relationships with customers and vendors
• Regulatory Compliance: Expense Policies align with ZATCA requirements for business expense documentation, whereas Credit Policies must comply with Saudi banking and commercial laws
• Risk Management: Expense Policies control operational costs and prevent misuse of company funds, while Credit Policies protect against payment defaults and manage cash flow risks
• Implementation: Expense Policies apply to all employees making business purchases, while Credit Policies primarily affect sales and finance teams dealing with customer accounts