Common expenses which occur in a business are as follows;
Supplies and Tools.
Entertainment and meals for Clients.
Travel Expense: Travel expense is the type of expense that occurs when an employee travels for a business tour and when there is a business need. This expense is paid by the company for the employee?s convenience and facilitation which the 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 the customer within the defined range of the product is charged and considered within the company expenses as an 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 reports 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 the following steps;
The date is mentioned at which the expense was done and if any item is a purchase, the date of purchase along with receipt is mentioned in the report.
The nature of the expense is mentioned in the report.
If there is any item purchased its quantity and details are given in the report. And for whom is it purchased, other than that which quota does it cover in the company expenses it is also mentioned.
It is also figured out that individually how much cost has been generated by a specific person or guest, and if internally then by which department or team is it used.
All advances are subtracted from these expenses and then it is analyzed to measure within the annual budget of the company.
Total reimbursements are collected and then estimation is made regarding the difference between the allocated budget and availed budget by each department and 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.