A business expense claim is a request to be paid back for money you spent on the business. For a small team, a good claim has four parts: a receipt, a reason, an approval and a record. If one part is missing, the claim is slow to pay and hard to defend later. This checklist shows how to set up each part in plain steps.
1. Write down what counts
Start with a short list of costs the team can claim. Keep it to one page. Common items are transport for client visits, software, office supplies, meals with clients and phone costs tied to work. Say what is not covered too. Personal shopping, fines and family travel are easy examples.
Add one line on timing. Many teams ask staff to submit a claim within 30 days of the spend. A fixed window keeps the books tidy at month end. It also stops people from digging through old bags for faded slips.
The rule that matters most is simple. The cost must be for the business, and you must be able to show it. If a reviewer cannot tell why you spent the money, send the claim back and ask.
2. Attach the right proof
Every claim needs a source document. This is the receipt, invoice or voucher from the seller. A card slip or bank line alone is weak proof, because it does not show what you bought. IRAS lists receipts, invoices, vouchers and bank statements as the source documents that back up business transactions. This applies whatever way you paid, including cashless payments.
Check each receipt for these basics before you approve it:
- The seller name and address.
- The date of the purchase.
- A description of what was bought.
- The amount paid.
- The GST amount, if the seller charges GST.
If your business is GST-registered and wants to claim back GST on a purchase, the tax invoice matters even more. IRAS says a full tax invoice shows the words "tax invoice", an invoice number, the date, the supplier name, address and GST registration number, a description of the goods or services, and the GST amount as a separate line. Smaller purchases can come with a simplified tax invoice. Ask the seller for the right document at the till, because fixing it later is harder.
Thermal paper receipts fade. IRAS suggests keeping a photocopy so the details stay readable. A phone photo taken the same day does the same job for many teams.
3. Set an approval step and limits
Pick one person who approves claims. In a team of five, that is often the owner or the office manager. Nobody should approve their own claim. If the owner claims, a second person, such as an accountant or a business partner, signs off.
Set limits so staff do not have to guess. A few examples teams use:
- Meals with clients: a set amount per head.
- Taxis: allowed when public transport is not practical, with the trip purpose noted.
- Single purchases above a fixed amount: ask first, before spending.
The numbers are yours to choose. What matters is that they are written down and the same for everyone. A written limit turns a tense talk into a quick check. It also shows an outside reviewer that your team has a working control.
Ask claimants to add one sentence on the purpose of each item, such as "lunch with a supplier to agree delivery dates". That sentence takes ten seconds. It answers the question a reviewer will ask first.
4. Pay on a fixed cycle and keep a log
Pay claims on a set day, for example the same week as payroll. Record each claim in a simple log or sheet. List the claim date, the person, the amount, the purpose, the approver and the pay date. One row per claim is enough.
Keep the log and the receipts together. Link each row to a scanned copy or a folder name. When a question comes up months later, you can find the paper trail in a minute.
Watch for duplicates. The same lunch can show up once as a card slip and again as a receipt. Mark each source document as paid when you reimburse it.
5. Keep records for the full period
IRAS tells companies to keep their records for at least five years from the relevant Year of Assessment. These include source documents, accounting records and schedules, and bank statements. For GST-registered businesses, GST records are also kept for at least five years. Source documents can be kept on paper or in electronic form. IRAS does not ask you to seek approval to keep records electronically, but you should keep the files complete, accurate and easy to retrieve.
The cost of poor records is real. IRAS says that if source documents are missing, it may estimate the income you earned, disallow claims for expenses and GST input tax, and impose penalties. Failing to keep records is an offence that can bring a fine of up to $5,000. A claim with no receipt is therefore a risk for the business, not only a paperwork gap.
Use cloud folders with a clear naming plan, such as the date, the vendor and the amount. Back them up. Accounting software can hold the receipt image beside each entry, which makes year end review faster.
A one-page checklist
- The cost is on the allowed list and was spent for the business.
- The claim is filed inside the time window.
- A receipt or invoice is attached, and it shows the seller, date, item and amount.
- A tax invoice is attached when GST is to be claimed back.
- The purpose is written in one sentence.
- Someone other than the claimant has approved it.
- The claim is in the log and marked paid.
- The files are stored and will be kept for at least five years.
Print this list and pin it where claims are filed. Review it once a year, and change the limits when your costs change. This is general information for small teams and not tax or legal advice. For a specific case, ask a qualified accountant or check IRAS.