An expense report is an official document used by most of the businesses. This document contains a detailed account of all the expenditures that are made by the business or any employee on behalf of the business. An expense report can generally be defined as a report formally written by the entity company explaining the facts and figures about all the expenses made out in attaining the goal in the specified period of time.
This tool is a sort of financial report, which may be prepared for a department, about a project or for an individual depending upon the need and nature of the business. This helps in a lot of ways like keeping a record of personal expenditures and can calculate the mileage reimbursements and expenses as well. Apart from this, any employee may be asked to submit expense report about the money spent by that individual for a period of time on a certain project. These expenses may either be reimbursed at the end, or the report may be included in the file for cost reference of the project depending upon the policy of the entity.
Such expense reports also help the business to review their performance and to make sure that their projects are still cost effective or not. The report can be made on the monthly, quarterly or yearly basis. In this way, the management can easily identify the areas for improvement or the overheads that need to be controlled. The report also helps in maintaining a better flow of cash in and out of the organization.
A typical or standard expense report should include some points like the name of the employee who wants the expenditures reimburses, his designation, and information of the company, title of the report, time period to which the report refers to, details of the expenses along with the description and the total of the expenses made in the specified period of time.
This should be kept in mind that the expenses drafted in this report must be authentic and genuine and must be explained in a reasonable manner. Every individual or department may use a different format for this report according to their ease, so in order to keep uniformity and harmony in all the reports the wise way is to use a standard template.
Expense Report Template
File: MS Excel | Size: 23 KB