- Choose a template or expense-tracking software.
- Edit the columns and categories (such as rent or mileage) as needed.
- Add itemized expenses with costs.
- Add up the total.
- Attach or save your corresponding receipts.
- Print or email the report.
Businesspeople frequently travel, particularly salespeople and company executives. Most workers are required to pay with a credit card for things like airfare, lodging, meals, cab fare, and even tips. Consequently, they need to get reimbursed for their expenditures. The majority of businesses have a specific process for reporting expenses, which typically involves completing an expense report. Typically, employees must manually or electronically fill out expense reports.
How to Prepare and Submit Business Travel Expense Report in Excel
Why are expense reports important?
For the use of company funds by employees or to determine reimbursement if an employee used their own funds for work-related expenses, some employers demand expense reports. Expense reports can assist all businesses, even solopreneurs, with financial accountability and future budget decisions. In order to file taxes or respond to an audit, businesses also use expense reports and the receipts that go with them.
What is an expense report?
An organization creates expense reports internally to keep track of spending. The most typical use of expense reports is to keep track of the expenses a worker incurs while carrying out their job duties. The employee can then request reimbursement from their employer by submitting the report and any necessary receipts. Using expense reports, business owners can keep track of overhead and other costs.
Employers may request expense reports for particular occasions or significant expenses, like business trips For ongoing costs, such as client lunches and office supplies, they might also determine them on a monthly or quarterly basis. Consider using electronic bookkeeping software and storing digital copies of receipts if you frequently incur business expenses. This can help with organization, loss prevention, and easy searchability of records.
What is an expense sheet?
An expense sheet is a spreadsheet-formatted expense report. The use of spreadsheets with software makes tracking and calculating expenses simple. There are numerous accounting software programs for individuals and businesses that include expense report templates and allow you to make your own. An expense spreadsheet has the same fields as a report: your name, company, dates, itemized expenses, subtotal, and total.
How to do expense reports
Although there may be differences in industry standards and practices, some aspects are the same for all expense reports. Basic expense reports include the company and person submitting the report, a list of dated and itemized expenses, a claim for a total, and a signature attesting to the accuracy of the information. You may also attach relevant receipts for corroboration.
The steps for creating a simple expense report are as follows:
1. Create or choose a template
You can find a template or make your own expense report form if your employer does not provide one. Find a sample expense report from your sector online or from a coworker to use as a guide. At the top of your report, put the name of your company, your full name, your professional email address, any employee identification numbers you may have. This is particularly crucial for larger businesses that manage numerous reports.
2. Customize the categories to suit your needs
Depending on your situation, you might need to omit or add to the usual expense report categories. According to your supervisor’s requirements or the guidelines in your employee handbook, make any additional adjustments that are necessary. Include a space for displaying a subtotal if your expenses must be calculated, such as reimbursement per mile driven.
3. Itemize each expense
For budgeting and financial accountability, expense reports should be as specific as possible, especially if receipts are not readily available. Include the cost, a brief description of each purchase, and the date of each transaction. To support your claims, cross-reference your report using paper receipts.
4. Calculate the total
The total should be legible, accurate, and appear before the signatures at the end of your report. To avoid disagreements, deduct any advances or per diem you received and double-check your total. Before submitting your report and getting paid, you might need a supervisor’s approval in addition to your own.
5. Include receipts
Ensure you can prove your expenses by retaining the receipts from any purchases made for work. Vendors who may not initially provide one at the time of sale can provide one upon request. Remember that the transaction history on your credit or debit card is not a receipt and might not contain sufficient details for your employer to accept it as evidence of your expenses. Make copies of all receipts and include them with your report.
6. Submit your expense report
Follow the instructions provided by your company for submitting your expense report, and then check to make sure it was received and deemed complete. For your own records, keep copies of all of your reports and receipts.
What are the benefits of expense spreadsheets?
A spreadsheet for expenses has a number of advantages over a report. Instead of waiting until the end of the period to add up all your expenses at once, you might find that spreadsheets make it easier to add expenses as they arise. This can lessen the likelihood that at the end of a reporting period, you will forget about a specific expense or purchase.
Another advantage of spreadsheets is that they can be easily searched, which makes them perfect for lengthy reports with numerous entries. When it’s time to submit your report, you can also designate a place for signatures.
What do you include on an expense report or sheet?
Depending on your company’s policies and the type of your expenses, there may be different categories or items that you need to include on your expense report or expense sheet. To ensure you are aware of what they anticipate seeing on your document, speak with your supervisor or the HR department. However, the following list of typical costs should frequently be included on an expense report or spreadsheet:
What should be on an expense report?
The expense’s type (such as meals, parking fees, or airline tickets); its amount (which corresponds to the amount on the corresponding receipt); and the account to which the expense should be charged A subtotal for each type of expense.
What is a standard expense report?
- For each expense, enter the date and description.
- For each expense, choose the payment type and category from the drop-down menus.
- For each expense, enter the total cost.
- Attach all necessary receipts to the document.
- Submit for review and approval!
How do you organize expense reports?
Expense reports track and organize work expenses. These reports assist staff members in receiving reimbursement for business expenses they incurred using their own funds. Additionally, it can assist businesses in itemizing their tax deductions.