Expense Reporting Guide: Easy Steps to Accurate & Timely Submissions

Managing expenses can feel like a hassle, but it’s an important part of many employees’ work responsibilities. For employees, filing expense reports means getting reimbursed for work-related costs, which can help ease financial stress. However, a recent survey by WalkMe found that 48% of workers experience job stress because of unreimbursed expenses, and many leave money on the table due to complex processes.

Whether it’s for travel, meals, or other business needs, knowing how to create and submit an expense report helps reduce stress and ensures you’re compensated for your out-of-pocket costs.

What Is an Expense Statement, and Why Is It Important?

An expense statement, commonly called an expense report, is a form used to document business-related spending. Employees use these reports to request reimbursement for costs like travel, meals, or other work-related purchases. For businesses, this is a way to monitor cash flow and ensure that spending aligns with the budget.

Expense reports are not just for individual reimbursements. They also help businesses track expenses for tax deductions and make audits much smoother. For example, if an employee travels to a conference, their expense report will lay out all costs like transportation, lodging, and meals, providing a transparent record of spending.

Steps in the Expense Reporting Process

Managing the expense reporting process is easier when you follow these key steps:

1. Record All Expenses

Start by listing everything you spent money on for business purposes. Include details like the date, amount, vendor, and category (e.g., meals, transportation, lodging). Organizing your expenses helps streamline the process.

For instance, if you bought office supplies or paid for a work lunch, note where the purchases took place and why.

2. Keep Your Receipts

Receipts are proof of your spending and are required for most reimbursement processes. Hold onto both paper and digital receipts. You can use apps that scan and store receipts so you don’t lose track of them.

3. Fill Out the Expense Report Form

Use your company’s preferred expense report template or software to log all expenses. A typical format will include sections for your name, the reason for spending, and the total costs. Be sure to organize expenses under categories like travel, meals, or supplies, so it’s clear where the money went.

4. Submit for Approval

Once you’ve accurately filled out the report and attached all receipts, send it to the appropriate person or department for review. Double-check the company’s expense report guidelines to ensure you’ve followed policies, like limits on meal costs or approved vendors.

5. Get Reimbursed

After your report is reviewed and approved, you’ll get reimbursed through a bank transfer or another payment method. Staying organized speeds up this process.

What Does an Expense Report Include?

Wondering what an expense report looks like? Here are the typical sections you’ll find in almost every report format:

1. Include Employee Information, like your name, job title, and department, so it’s clear who the expense report belongs to.
2. Add the Dates of Expenses to show when the spending happened.
3. Provide Expense Details, such as the amount, the type of expense, and why it was for work.
4. Make sure to include Receipts Attached as proof for the money spent.
5. Finally, calculate the Totals by subtracting any cash advances or personal costs to show the exact amount to be reimbursed.

Example of an Expense Report

Here’s an example to give you a clearer picture:

Employee Name: John Smith
Travel Date Range: March 10–March 12, 2024
Purpose: Client meeting in Austin

Total Reimbursement: $815

This example clearly outlines each expense and groups them by category, making it easy for managers to review and approve.

Tips for Accurate Expense Reporting

Accurate reporting saves time and reduces errors. Here are some best practices to follow:

1. Be Detailed

To successfully learn how to create and fill out an expense report, always provide complete information, including the reason for each purchase and the vendor name.

2. Follow Company Policies

Learning how to create and fill out an expense report means understanding your company’s rules, like daily meal allowances or limits on entertainment costs.

3. Submit On Time

To avoid delays, remember that knowing how to create and fill out an expense report includes submitting the report promptly, as late submissions can delay reimbursement and create confusion.

4. Separate Personal Cost

When working on how to create and fill out an expense report properly, keep personal expenses completely separate from business costs to avoid problems during processing.

5. Use Tools

Part of understanding how to create and fill out an expense report is using helpful tools like QuickBooks or FreshBooks, which make tracking and submitting expenses much easier with automation.

Why Expense Reporting Matters

Expense reporting is essential for both employees and businesses. For employees, it ensures they are reimbursed quickly for work-related expenses, making it easier to manage personal finances. For businesses, it helps track spending, improve budgeting, and stay organized for tax preparation, all while identifying ways to save money.

Using tools like apps or templates can make filling out expense reports much easier. These tools provide a clear structure, reduce errors, and save time for everyone involved. With a little practice, the process can become a straightforward part of your routine.

Remember, good expense reporting helps build trust. When employees are reimbursed on time, they feel valued, and businesses can maintain transparency and accountability. Whether it’s handling small daily costs or managing large project expenses, solid expense tracking keeps everything running smoothly.

Start using simple tools and forming good habits for tracking expenses today. It’s a small effort that can make a big difference in ensuring everyone stays organized and stress-free!