Businesses and their employees use an Expense Report to track and report their expenses for travel and events related to their business.
For accounting and tax purposes, expense reports are usually printed forms or spreadsheets. Therefore, tracking tax deductible expenses is especially important.
Use a free Expense Report Template instead of Excel or Google Sheets to make your expense report quickly. Add your company's information and other details to the spreadsheet, then share it with your team.
What is an Expense Report?
An expense report is a form used by companies to track their business expenses. It helps you keep track of expenses related to a company's projects, employees' business trips, or departments. Expenses and relevant documentation can be tracked quickly.
Employees prepare expense reports based on their actual business expenditures. Expense reports are submitted for approval by the employee. Reports must be accompanied by receipts for expenses.
A valid and accurate expense report is also checked by authorized personnel. Under guidelines and reimbursement policies, the employer pays the employee after approval.
Components of an Expense Report
Expense reports may contain different components depending on the type of business. Expense reports typically contain the following elements:
An expense may be incurred to meet a client, conduct a market survey, purchase goods, or purchase machinery
Details about the employee, including the employee's ID and department
The reporting period for expenses
The actual date of expense occurrence
Expense description
Expense amount
Heads of expenses
Advances, if any
The Uses of an Expense Report Template
Expense reports are commonly used to track business travel expenses like transportation, food, and lodging. An expense report can also be used to reimburse employees for business expenses.
Expense reports can be used to track mileage, gas, refreshments, and even office supplies purchased by your employees during a meeting with a client.
In addition to helping with budget planning and tax reporting, expense reports provide accurate records of business costs.
It helps businesses prevent mistakes and prepares them for tax filing and auditing by providing receipts for all expenses listed on a report.
In addition to safeguarding against budgeting errors, collecting expenses reports from employees weekly or monthly ensures that money is being spent appropriately.
The expense report can be as detailed or as simple as you need it to be, depending on your business needs. Typically, the report includes an itemized list of expenses and a description of each.
Mileage, meals, hotel costs, and training expenses can be separated into categories. Information regarding the destination and reason for travel may be included in a travel report.
The total amount of reimbursement should be subtracted from any advance payments for costs. Include the person requesting reimbursement's contact information and a signature line for approval. It is important to note the time in which the costs were incurred for accurate record-keeping.
If you're planning a wedding, remodeling your home, or tracking household expenses, expense sheets can help you create a budget.
It may be possible to save money and cut costs by tracking your primary expenses in a personal budget. In addition to formal expense reports, we've included simple budget templates for personal and business use below.
These Word and Excel expense templates can be downloaded, saved, customized, or printed as needed. Download the WPS Office to get started.
Among the other uses are:
Reimbursement of employee expenses
Recording and reporting business expenses
For tax purposes. Tax liability is reduced by business expenses
It is used by businesses to analyze expenses
Management can curb unnecessary overheads with this tool
It helps to save money by keeping track of expenses
How to Make an Expense Report
Even though there are many types of expense reports, the process for creating them is mostly the same. The following items can be included in an expense report:
Using PDF or any other software that you feel comfortable with, create templates of report samples. To have more references, you can also browse through the templates available in this post.
Create an expense report according to your needs. Assess an entity's expenses within a specific timeframe. Reports can be daily or annual. A specific expense report depends on the needs of the entity that needs it.
Prepare an expense report by gathering all the items that must be included in it: the dates, the durations, the amount, the purpose, and the kind of expenses that existed within specific periods.
Conclude the expenses. The expense report can also be compared with previous expense reports if needed.
How Accurate Expense Reports Can Help
Expense reports must contain accurate details, be sourced correctly, and be presented well. For a business to be able to track expenses, record expenses, and reference them, expense reports and financial reports must be based on actual figures.
Here are a few reasons why it is essential to create accurate expense reports:
1. By creating an accurate expense report, you can lessen the workload of those who track the business's spending. It will be easy to gather data since all the items in this report sample are presented well and are already validated.
2. Businesses can save money by eliminating the need to review expense reports several times by using an accurate expense report. There is less need for further auditing due to inconsistencies if an expense report provides all the information the business needs.
3. A financial balance can be inputted and aligned with the business's accounts once the reports have been completed. This allows the company to be able to pay out the right amount for particular transactions. When an expense report is accurate, financial transfers and recording will run smoothly.
Free Expense Report Templates
1. Excel template for expense reports
The expense report template documents the date, type, and total amount for each expense. Column headings can be changed to categorize expenses, or new columns can be added if necessary. You will be reimbursed for your expenses, minus any advance payments, after itemizing them.
2. Monthly income and expense spreadsheet for Excel
With this monthly expense and income tracking template, you can keep track of both. A straightforward spreadsheet format and a total calculation feature are provided in this Excel expense template.
You can adjust the spreadsheet to include whatever expenses you want to keep track of, and each month is a separate sheet, so you can keep track of expenses both monthly and annually.
3. Excel template for expense sheets
Track your expenses, whether personal or business-related, with this basic expense spreadsheet template. Track expenses by keeping track of payment methods, transaction types, amounts, and other details.
This expense sheet can assist you in creating a monthly expense report, adding up expenses over any period, and referencing expenses.
4. Excel template for event budgets
Using this event budget template, you can compare projected and actual expenses and revenue sources. You can create a visual event expenses report by using the pie chart that shows how much budget each category is using, as well as the percentage of budget used by each category. Plan your future event budget based on profits and losses.
5. Excel template for weekly expense reports
For consistent reimbursements, some businesses require employees to submit weekly expense reports. Each day of the week is detailed in this template.
If you need to track travel costs, shipping charges, business meals, or other expenses, you can edit the expense categories. Subtotals, payment types, and business purposes can be described for different expenses.
6. Excel template for business budgets
Using this business budget template, you can track small business expenses and create a balanced budget. Compare your income with operating expenses, such as marketing and payroll. Using the template, you can plan your budget based on projected income and expenses.
7. Excel template for personal budgeting
Creating a personal budget is an excellent tool for financial management, as well as identifying and achieving your monetary goals. A dashboard view provides a quick visual reference of your monthly expenses, as well as a comparison of your income and savings.
You can track different sources of income and expenses and get a comprehensive picture of your finances by itemizing them.
8. Excel template for balance sheets
Create a quick report on your company's current financial standing using this balance sheet template. Balance sheets can be used to summarize complicated financial data into a simple spreadsheet and communicate with investors.
9. Excel template for travel expense reports
Keep track of business trip expenditures with this detailed expense report template. In addition to mileage tracking, the template includes lodging, meals, and other transportation expenses.
Expenses that don't fit into other categories can also be listed here. Include the employer's and employee's contact information, as well as the trip's destination and purpose.
10. Excel mileage tracking sheet for business
Employee mileage costs are often reimbursed by businesses and organizations. Any miles accrued for business purposes can be recorded and calculated using this mileage expense sheet.
Calculate the reimbursement amount by entering the rate per mile and the number of miles. In addition to odometer readings, you can include any relevant notes about your trip.
11. Excel reimbursement form for business expenses
Employers can use this expense template to document remuneration paid to staff, and employees can use it to request reimbursement for business expenses.
It describes costs, lists amounts, and records the dates of each transaction using a basic Excel expense report template. Additional columns or additional information can also be easily added.
How Employees Abuse Expense Reports
Employees create most of the expense report templates. The business management should ensure that all the information presented in the expense report has been properly allocated since employees curate this document.
Employees who abuse expense reports can be identified in three ways:
1. A lot of transactions without receipts listed in the budget document indicate that the budget has not been used properly. Acquired or purchased items should be accompanied by receipts in expense reports.
2. If you compare the expense report with the number of items present in the business vicinity, you will find that there are inconsistencies. The improper and disorganized list of materials where the budget is may also be another tactic used by employees to conceal their misused expenses.
3. There was a delay in submitting the expense report. Others may submit it on time, but it contains information labeled to follow without a suitable explanation for its absence.
Frequently Asked Questions
Is there a deadline for employees to submit expense reports?
Companies usually have policies in place. It is typical for companies to provide employees with a reasonable amount of time after they return from a trip. Businesses generally allow 2 weeks for settling back into routine and completing their reporting tasks.
When an expense report is itemized, what does it mean?
Providing a subtotal for each head of expenses is part of itemizing an expense report.
Do expense reports require receipts?
An expense report or a paper receipt contains the details of the expenses, like the amount, date, time, place, and purpose. As a result, expense reports must be accompanied by receipts.
Is tip reimbursement possible?
The company policy governs the reimbursement of tips. Taxi drivers, baggage handlers, and waiters are usually reimbursed for reasonable tips.
Is it possible for a company to withhold reimbursement for expenses?
Reimbursements cannot be refused by an employer. Employers often withhold reimbursement for expenses by lingering approval.
What are the employee's expenses and income?
There is no income from reimbursement. Employees receive reimbursements when they spend their own money.
Expenses can be refused by a company?
Employers have the right to refuse to reimburse expenses if employees fail to provide accurate records and receipts.
Conclusion
Business expense report templates are used for tracking expenditures and reimbursing them. In addition to the travel expense report template, there are a variety of other expense report templates available, including the Simple Expense Report Template.
When you use an expenses spreadsheet template in excel, you can keep track of your expenses and keep track of them when you need them. Small businesses can manage and maintain expenses using this type of expense form template. An easy way to get this template is if you download the WPS Office.
