An expense policy is a set of guidelines and rules that dictate how employees can spend company money while on business-related travel or other work-related activities. This policy typically outlines what types of expenses are reimbursable, such as lodging, meals, transportation, and incidental costs, as well as the limits for each category. The purpose of an expense policy is to ensure that employees do not incur unnecessary or excessive expenses while representing the company, and to provide a clear framework for managing and reimbursing these expenditures.