What Is a Practical Process for Handling Invoices and Reimbursements?

Use a documented process to receive and check each invoice or reimbursement, then approve expenses and record payments. Every request should show the payee, purpose, amount, relevant entity, supporting documents, and approver. This gives the office a clear record of why money moved and helps prevent payments from relying on one employee's memory or judgment.

Receive and Review Requests

Route requests through a shared inbox, system, or other designated channel. Record the date received and assign an owner to check that the invoice or reimbursement has adequate support. For an invoice, confirm the payee, services or goods, amount, due date, and responsible entity. For a reimbursement, ask for the business purpose plus receipts or other documents required by office policy. Send incomplete requests back for clarification; do not fill gaps with assumptions.

Check for duplicate invoices and confirm each request fits the office's policies and approved budget. The person reviewing a charge should flag personal expenses or unclear allocations for resolution before payment. If tax or accounting treatment is uncertain, talk with the CPA. Ask the attorney about legal questions concerning the office's obligations.

Approve, Pay, and Record

Set written approval limits and specify who can approve each type of expense. The person approving a payment should not have unchecked control over its release or reconciliation. Full separation may be impractical in a small office. Add a second review for higher-risk payments, schedule periodic reviews of bank activity, or use another control the family and its advisers consider appropriate.

Document approvals before payment. Then record the payment date, method, amount, entity, and supporting file. Keep the invoice or receipt with the approval record. Retain proof of payment as well. Reconcile payment records to bank activity on a regular schedule, and when practical, have someone other than the person who initiated payment review exceptions. The governance material in single family office governance emphasizes clear approval rules and controls around movement of funds.

Handle Exceptions and Reimbursements Consistently

Write down how staff should handle urgent requests, missing receipts, disputed charges, and payments involving a family member or related entity. Require an explanation and documented approval for exceptions, then review them after payment. For reimbursements, set a submission window and explain what information is needed. Apply the same procedure to people doing similar work, and state any different treatment explicitly in the policy.

Review the process periodically to see whether approvals are timely and records are complete. Give a backup staff member access to the procedure and records needed to cover an absence. The office can map its steps using recurring processes to map before opening. For related setup decisions, the family office starting guide covers governance and operations in context.

Typically, no single employee, whether they are a family member or not, should have the ability to withdraw large sums of money from the business, and if someone is allowed that privilege, it should only be after receiving approval for that movement of funds.

Sources: How to Start a Family Office, The Family Office Book, The Single Family Office. Informational only, not financial, legal or tax advice.