How to Do an Expense Report: A Step-by-Step Process

An expense report is a formal document employees use to request reimbursement for costs incurred on behalf of their organization. It itemizes business expenditures, serving as a record for accounting and enabling companies to track spending, maintain financial accuracy, and organize records for tax compliance. These reports are a standard part of financial operations, ensuring employees are repaid for legitimate business expenses.

Gathering Your Expense Information and Documentation

Before creating an expense report, collect all necessary information and supporting documentation for each expenditure. Each entry requires the transaction date, vendor name, amount spent, category, and a detailed business purpose explaining its direct connection to business activities.

Proof of purchase, such as receipts or invoices, is required. These documents verify transaction details, including the date, vendor information, itemized list of goods or services, and the total amount paid. Organizations commonly require receipts for all expenses to substantiate the expenditure and ensure tax compliance.

Organize these documents, whether physical or digital. Digital copies streamline the process, allowing easy attachment to electronic reports. Proper categorization of expenses, such as travel, meals, or office supplies, is important for financial tracking and tax preparation. Businesses use these categories to gain insights into spending patterns, manage budgets, and prepare for audits.

Completing Your Expense Report

With all information and documentation gathered, input this data into the expense report. Enter each expense line by line into a digital system, spreadsheet, or physical form, ensuring accuracy for the date, vendor, amount, category, and detailed business purpose. Electronic systems may pre-populate fields, especially if integrated with corporate credit cards, streamlining data entry.

Attach supporting documentation. For digital reports, link or upload scanned images or digital receipts to their corresponding expense entries. For physical reports, attach receipts. It is important to match each piece of documentation to its specific expense entry to ensure a clear audit trail.

Before finalizing the report, review and verify it thoroughly. Check all calculations for accuracy, ensure every required field is complete, and confirm adherence to organizational expense policies. This review helps identify duplicate entries or discrepancies and ensures the total reimbursement amount requested is correct, preventing delays in approval.

Submitting and Following Up on Your Expense Report

Once the expense report is complete and thoroughly reviewed, submit it. Common methods include online portals, emailing the report to a designated finance department, or physically submitting a paper report. Follow your organization’s specific submission instructions to ensure the report reaches the correct approvers.

After submission, the report enters an approval workflow. This typically involves review by a direct manager, followed by a finance team, who verify policy compliance and accounting accuracy. Clarifications or corrections may be requested if issues are identified. The timeline for reimbursement can vary depending on the organization’s processing cycles.

Many electronic systems offer a feature to track the status of a submitted report, allowing employees to see if it is pending, approved, or paid. Contacting the finance department can provide updates on the report’s progress.