Expenses are unavoidable, especially if you want your employees to execute their job functions during business operations efficiently. Since these expenses could happen, you have to ensure that they will keep track and record all the costs made in an expense report form. In this article, we will show you how to create this form for such situations.
Expense reports are for the tracking of expenditures incurred for which they would request for reimbursement. Expense reports would often come with proof of purchase and produced monthly, quarterly, or yearly. Through it, you can control your business’ finances, and you can also manage the cash flow properly.
There are events where employees need to pay for the business costs out of their budget. If you have gone through this, you know how important it is to keep your income in check. Check out these tips in making an expense report to get started.
According to a Forbes article, expense report fraud can happen a lot of times. To circumvent that issue, you have to work out a firm but fair expense report policy that every single employee must know and follow. Policies will help you avoid instances wherein you will reimburse individuals for their personal and inappropriate expenses. This will also make it easy for you to design the expense report format.
Writing down the expense type will help make your expense report more specific and trustworthy as opposed to just writing a certain amount on the report. Whether for travel or a specific part of a project, share the details of the expenses incurred so that there will be no doubt in receiving the reimbursement.
Add space in the expense report where the information regarding the employee’s full name, the designation assigned to them, the department they belong in, and their manager’s name. It must also contain the signature of the person who approves the expense report and the person who submits it.
Include the date on the expense report when incurring the expenditure and ensure the date is the same in the receipt. Aside from including the date where the employees spent the money, it must also include the date when the manager signs the expense report. That way, nobody doubts the validity of the report.
Reimbursement refers to the payment of somebody who has spent or lost money. This is usually done by businesses who sent an employee to do a task outside of the office.
Various tasks involve creating an expense report. Some of it includes entering the necessary expense report information, selecting the actual bank charges, entering the required detailed accounting information, and working with credit card statements.
While there are dozens of programs that can help you create a detailed expense report, you can use Microsoft Excel for that as well. Its features are ideal for accurately organizing numbers.
Expense reports help keep the finances of every organization in check. Just follow the tips mentioned above, and you will be able to create one that aids you in managing cash flow properly. For more information on how to create your expense report, feel free to check out our expense receipts and financial statements examples for reference.