Expense Report
A document summarizing business expenses for a specific period, used for reimbursement or accounting.
An expense report is a formal document that itemizes business expenses incurred by an employee or business owner over a specific period. It serves as both a record for accounting purposes and a request for reimbursement when expenses were paid out-of-pocket.
What's in an Expense Report
A typical expense report includes: the date of each expense, vendor or merchant name, amount spent, expense category (travel, meals, supplies, etc.), business purpose, and attached receipts as supporting documentation. Most companies and accountants require receipts for any expense over a certain threshold (often $25-$75).
Expense reports can be weekly, monthly, or per-trip depending on the organization's policy. They're typically reviewed and approved by a manager or accountant before reimbursement is processed.
Why It Matters
Expense reports create accountability and transparency around business spending. For employees, they're the mechanism for getting reimbursed. For businesses, they're essential for tracking costs, maintaining tax compliance, and controlling budgets. Poorly documented expense reports lead to delayed reimbursements, disallowed deductions, and potential compliance issues.
Example
After a three-day business conference, a sales rep submits an expense report totaling $2,340: flights ($650), hotel ($890), meals ($180), Uber rides ($120), and conference registration ($500). Each line item includes a receipt, and the report is approved and reimbursed within two weeks.
Related Terms
- Expense Tracking — Recording and monitoring expenditures
- Business Expense — Costs incurred in running a business
- Reimbursement — Repayment for out-of-pocket expenses
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