How to Make a Business Expense Report
Learn how to efficiently create and submit business expense reports to ensure fast and accurate reimbursement.
An expense report formally records costs incurred by an employee for their employer. It facilitates employee reimbursement for out-of-pocket business expenses. Organizations use these reports to track expenditures, manage budgets, and meet tax compliance obligations.
Preparing Your Expense Information
Before compiling an expense report, gather all necessary details and supporting documents. Common categories include travel, meals, transportation, supplies, and client entertainment. For travel, documentation includes booking confirmations and itemized hotel folios. Meals and entertainment require specific details: date, amount, location, business purpose, and names of all attendees with their business relationship.
For transportation expenses like mileage, record the date, start and end locations, total miles driven, and business purpose. A valid receipt is the primary documentation for all expenses. A proper receipt includes the vendor’s name, purchase date, total amount, and an itemized list of goods or services. These records are required for expenses over $75 and must be retained for tax purposes, often for at least three years.
Maintaining diligent records ensures accuracy and compliance. Collect and organize expense information as costs are incurred, rather than waiting. This proactive approach prevents lost receipts or forgotten details, which could delay reimbursement. Utilizing digital methods, such as scanning receipts or taking photos, simplifies this ongoing collection.
Assembling and Completing the Report
After collecting expense information, systematically enter details into an expense report. Companies often provide specific tools, such as expense management software (e.g., Concur, Expensify), spreadsheet templates, or paper forms. Consult company policies to determine the required submission method.
Regardless of format, input specific information for each expense. This includes the transaction date, vendor name, exact amount, expense category, and a clear business purpose. For each entry, attach or link the corresponding receipt or supporting documentation for a complete audit trail. If using a manual method, verify all calculations, such as subtotals and grand totals, are accurate.
After completing all entries, thoroughly review the report for accuracy and completeness. Verify all required fields are filled, receipts attached correctly, and expenses align with company reimbursement policies. Adhering to these guidelines prevents approval delays and ensures the report meets internal compliance and external regulatory requirements.
Submitting and Tracking Reimbursement
Once the expense report is complete and reviewed, formally submit it. This often involves clicking a “submit” button in an expense management system, emailing a spreadsheet, or handing in a paper form. Many companies require manager approval before finance processing, so understand the internal approval workflow and any submission deadlines.
After submission, the report undergoes review by a manager and then a finance or accounting team to verify policy adherence and accuracy. This ensures only legitimate, documented business expenses are reimbursed. Approval and processing times vary, but employees can generally expect reimbursement within 5 to 10 business days after final approval.
Reimbursement is commonly issued via direct deposit. Less frequently, it may occur through a physical check. If reimbursement does not arrive within the expected timeline, employees can follow up with their manager or the finance department about the report’s status. Maintaining a record of the submission date and any confirmation numbers facilitates these inquiries.