Definition and Example of an Expense Report

An expense report is a formal document utilized by employees and contractors to obtain reimbursement for business expenses from their employers. For instance, a contractor may list meals consumed on the job, gas expenses for work-related travel, and internet costs for a work phone on their expense report.

Alternate Name and Scenario

Also known as a Travel and Entertainment report, imagine an employee traveling for a business conference. They use various modes of transportation, dine at restaurants, entertain clients, and incur other expenses related to the task at hand. These expenses can be included in the expense report.

How an Expense Report Works

Companies typically outline their reimbursement policies in contracts provided to employees and contractors before starting work. This includes details like daily expense allowances, reimbursable expenses, and submission guidelines for expense reports.

What an Expense Report Should Include

An expense report should contain the date of the expense, type of expense, employee or contractor details, and receipts for proof of expenditure. If including an expense not specified in the contract, it's important to provide an explanation for the reimbursement request.

Types of Expense Reports

Two common types of expense reports are Recurring Business Expense Reports, used by employees with frequent expenses, and One-Time Business Expense Reports for occasional reimbursements. Templates from platforms like Microsoft, Zoho, and Smartsheet can be utilized for efficient reimbursement submission.

Key Takeaways

Expense reports are essential for tracking business expenditure and obtaining reimbursement based on agreed-upon rules. One-time reports are for sporadic expenses, while recurring reports are for regular employees. Utilizing templates can streamline the reimbursement process, but ensure all necessary details are included for prompt payments.