How to Do Expense Reports and Get Reimbursed

Expense reports are formal documents that detail business-related expenditures incurred by an individual, typically an employee, on behalf of a company. Their fundamental purpose is to provide a clear record of these financial outlays, enabling businesses to track spending, manage budgets, and ensure compliance with internal policies and tax regulations. Expense reports also facilitate the reimbursement process, allowing employees to recover approved out-of-pocket costs. This systematic approach to expense management helps companies maintain accurate financial records and can simplify tax preparation by identifying eligible deductions.

Gathering Expense Information and Documentation

Before completing an expense report, it is necessary to meticulously gather all relevant expense information and supporting documentation. Each expense requires specific data points, including the date of the expenditure, the name of the vendor or merchant, the exact amount spent, and a clear purpose or reason for the expense. It is also important to assign each expense to an appropriate category, such as travel, meals, or office supplies, which aids in financial analysis and tax reporting.

Supporting documentation is a mandatory component for verifying expenses and is often required for tax compliance. This typically includes itemized receipts, invoices, or booking confirmations. For digital transactions, e-receipts or email confirmations are acceptable. Credit card statements alone are not sufficient as they may not provide the necessary itemized detail.

Organizing and storing these documents promptly after an expense is incurred streamlines the reporting process. Physical receipts can be kept in designated folders, while digital documents can be saved in cloud storage or dedicated expense management apps. Many mobile applications allow users to capture images of receipts, which are then stored digitally and can even be automatically categorized. Keeping accurate records is essential for accurate reporting.

Completing Your Expense Report

Once all necessary information and documentation have been collected, the next step involves accurately populating the expense report. This process typically involves transferring the gathered data onto a company-provided form, spreadsheet, or into an online expense management system. Each individual expense should be entered on a separate line, detailing the date, vendor, amount, and a concise business purpose.

Categorization is an important aspect of completing the report, ensuring expenses are properly classified according to company guidelines and common accounting practices. Categories often include travel, such as flights and lodging; meals, distinguishing between individual and client entertainment; and general office supplies. Correct categorization is important for budget tracking and tax deductibility.

Attaching supporting documentation is required for validating expenses. In most digital systems, this involves uploading scanned images or digital files of receipts directly to the corresponding expense line item. For physical reports, receipts are typically stapled or securely attached. After all data and documents are entered, a review is necessary to check for accuracy and completeness before submission. This review helps prevent delays in reimbursement and ensures compliance with company policies.

Submitting and Tracking Reimbursement

After an expense report has been completed and reviewed, the final stage is its submission and tracking for reimbursement. Submission methods vary by organization, ranging from online portals or dedicated expense management software to email submissions or physical drop-offs. Many modern systems allow for electronic submission directly from a mobile device, which can include attaching digital receipts.

Following submission, the report typically enters an internal approval workflow. This usually involves review by a direct manager, followed by processing through the finance or accounts payable department. The finance team verifies the expenses and ensures they comply with company policies and tax regulations. Companies often establish clear deadlines for submission to maintain predictable processing timelines.

Employees can track the status of their submitted reports through the same online systems used for submission. Reimbursement timelines can vary, but employers are expected to process payments promptly. Prompt reimbursement is important for employee satisfaction and ensures individuals are not carrying business-related debt for extended periods.