Expense reports are documents that employees submit to employers to request reimbursement for the expenses incurred while completing a task for them, such as traveling to meet clients, nurturing relationships, or closing deals.
What does an expense report contain?
Expense reports contain itemized lists that lets employers accurately know how much was spent by the employees on official business. While each company will have its own requirements for expense reports, some of the things that they may contain are the following:
- Date of Purchase
- Vendor Name
- Vendor Tax Identification Details
- Client / Project Details
These details will be cross-validated by both internal accounting procedures and external auditors. Only after validating can employees be reimbursed.
What are some common examples of expenses reported?
Some common expenses that employees file for include transport expenses for personal vehicles, petrol, flights, entertainment expenses for meeting clients, and lodging expenses such as hotel rooms, food, and utilities.
How much can employees reimburse?
Each company will have its own set of policies and procedures concerning expense reporting and reimbursement. Most companies have a maximum budget that is reimbursable either stipulated in their contract or the original budget request form that employees submit before paying for the expense.
How are the expense reports submitted?
Often logged in the form of a spreadsheet template or through an expense report software, many companies will also require supporting documents such as the scanned and physical copy of their official receipts.
Most companies will have specific deadlines for employees to file for reimbursement, usually anywhere from within a week to a month. Should an employee fail to submit the expense report during the allotted submission window, companies can choose not to reimburse them.
Why do companies require expense reports?
Companies need to keep track of exactly how much they’re spending for them to create a better budget in the next financial planning season. If the management has no visibility, they will not know the actual costs necessary to operate their businesses. With this, employees may need to use their own money out of pocket to make up for it.
Another reason is that companies regularly utilize these expenses to increase their tax returns. If employees do not provide the right supporting documents for their submissions, the government may count them as taxable income.
Hiring Professional Help
Filing your expense reporting as an employee is beneficial to both you and your employer. Besides being able to reimburse how much you’ve paid to do your role, you’ll also be helping your employer improve their budget procedures and get some tax benefits as well.
If you think the process is too much of a hassle, you can work with companies like Hey DAN that can do professional CRM Data Entry services that would be able to handle the expense reports for you with just a single call. Never miss an expense reporting deadline, any need to fill up templates, get your money back, and enjoy the benefits of expense reporting without the stress that comes with it.