An expense report is a type of report which mentions all the major and minor expenses which occur throughout the organization to keep track and record of all tangible and intangible expenses.
Common expenses which occur in a business are as follows;
Entertainment andmeals for Clients.
Travel Expense: Travel expense is the type of expense which occur when an employee travels for the business tour and when there is a business need. This expense is paid by the company for the employee’s convenience and facilitation which company is liable to pay because the employee is on a purely business trip considering business demand.
Supplies and Tools: All the supplies which are ordered and received by the employees within the organization and they purely fill the purpose of business requirement or for any specific project those supplies and all the tools would be charged by the organization on its company expenses.
Entertainment and meals for Clients: All the meals and entertainment products or any kind of facilitation provided to customer within the defined range of the product is charged and considered within the company expenses as employee is not liable to pay any of the bills for the client lunch or any food item from his own pocket because clients come solely for the business purpose and their expenses are included in the company expenses to bear the charges created by them.
Expense report can be customized every time depending upon the nature and quantity of expenses made. Then the report is generated accordingly which is presented to the human resources department or the authorized departments to take further action upon it. Expense report generally contains following steps;
Date is mentionedat which the expense was done and if any item is purchase, then date ofpurchase along with receipt is mentioned in the report.
Nature of expenseis mentioned in the report.
If there is anyitem purchased its quantity and details are given in the report. And for whomis it purchased, other than that which quota does it cover in the companyexpenses it is also mentioned.
It is also figuredout that individually how much cost has been generated by specific person orguest, and if internally then by which department or team is it used.
All advances aresubtracted from these expenses and then it is analyzed to measure within theannual budget of the company.
Totalreimbursements are collected and then estimation is made regarding thedifference between the allocated budget and availed budget by each departmentand each team. After that remaining is adjusted accordingly.
Travel Forms and Pre-approvals:
For travel reimbursements which are to be mentioned in the report, there are few rules and regulations on its behalf employees can avail this expenses reimbursement. There needs to be a form filled along with pre-approvals by the top heads only then these expenses can be entertained and further quoted in the monthly and then annual expense report.