Alternate name: Travel and entertainment report, T&E report
Imagine an employee traveling for a business conference. They would use some means of transport, eat something on the way to/at the conference, entertain clients at a restaurant or a co-working space, and incur many such expenses to complete the assigned task. All of these may be included in an expense report. Depending on the company policies, the employer fully or partially reimburses these expenses based on a predetermined arrangement (contract).
How an Expense Report Works
Companies typically have a fixed reimbursement policy, which is clearly stated in the contract employees and contractors receive before commencing work. The contract will include specifics like what is the per diem (daily expense allowance), which expenses will and won’t be reimbursed, and how the expense report should be submitted. When it is time to file a reimbursement for business expenditure, the employee or the contractor will submit an expense report to the manager, employer, or the accounting department, depending on the size and type of company.
What an Expense Report Should Include
An expense report should include the following details for a hassle-free reimbursement process:
Date: When the business expense was incurred. Expense details: Type of expense incurred (meals, tickets, fuel, etc.). Employee/contractor details: Name, department, business information, contact details, type of work arrangement, etc. Receipts: Proof of expense (invoices and bills).
Types of Expense Reports
Different companies have different reimbursement policies, so employees have to adjust their expense reports accordingly. Below are two types of expenses reports used frequently by small-to-medium-sized businesses.
Recurring Business Expense Report
Regular employees who frequently incur a lot of business expenses follow a fixed template to submit business expense reports every month or weekly, depending on the company’s policy. These may include a daily fee or specific expenses such as travel and meals.
One-Time Business Expense Report
If an employee, or most likely a contractor, is filing for reimbursement in a single instance (not frequently), they use a one-time business expense report. The format for a one-time expense report isn’t fixed, as different contractors may incur different types of expenses. Such reports offer more flexibility but may require receipts for proof.
Templates for Expense Reports
Using a neat template with clearly demarcated sections for each piece of information can make the reimbursement process easier. Here are some websites and apps to access free templates for submitting expense reports:
Microsoft Zoho Clockify HubSpot Smartsheet
While templates can be a good place to start, make sure they include all the details necessary for reimbursement before submitting the document to avoid delayed or stuck payments.
