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An expense report is a type of form that is completed by employees to list the expenditure for which they require compensation. It tracks the record of expenses during the performance of job functions. For reimbursement, the receipts are attached to the form if the amount of related expenses is more than the minimum requirement. After evaluating them, the employer examines the validity and accuracy and pays the amount to the employee. After the employee receives the reimbursement, they can then record it as a business expense.

In addition to recording employees’ expenditures, expense report forms can also be generated for any employee’s initial advance. But in this case, the employee does not get any reimbursement and the employer records the payment as a business expense. Instead of compensation, employers deduct the expenditure from the employee’s advance. Broadly speaking, an expense report includes a number of contents, also, companies can customize their expenditure forms.

Along with the contents, it also covers a small summary of the employer’s entertainment and travel policy, defining which expenses will be and not be repaid by the employer such as expenditures of in room entertainment. A short summary is provided only for these elements because these elements can be treated as fun and an employee may enjoy activities which may not necessarily be a part of the job.

The expense report form is simply a detailed listing of expenditures incurred by every department of your company for a specific time period. The main reason to forming an expenditure report is to see as to whether or not the actual expenses and expected ones are different from one and another. The finance team evaluates and investigates the variances and reasons for them once they evaluate it. Here are some standard items to be included in the report which are as follows.

  • The date when expenditure was incurred which must match the date on the receipt.
  • The nature of the expenditure for example, parking, meal, airline ticket etc.
  • The total amount of the expense matching the amount of the receipt.
  • The account on which the expenditure requires charge.
  • The subtotal amount for each and every type of expense.
  • The subtracted amount for any advances paid to the employee.
  • The requested grand total amount for the repayment.

It is important to maintain the records of spending and expenditures. But honestly, how many of us really do it? Most of us just say it and do not do it in real, only some of them do. We often ignore it as the process looks quite intimidating and tedious to us. But we all should know that it is not just enough to say tracking expenses is essential, we must do it too. Especially employees who really want to get reimbursement of the money, they should try keeping record of expenses.

It is an activity which benefits everyone. Giving you your financial insight and tracking where you have spent all your money, an expenditure report form can also help you with your office budgets. If you are still not convinced, check out the reasons to maintain an expense report form.

Our passion to help people succeed inspired us to come up with these high quality customizable expense report documents.

Downloadable Templates:

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