An expense report includes amounts spent by an individual while performing necessary job functions, according to Entrepreneur. Such expenses may include charges for meals, transportation, hotels and equipment. Expense reports are particularly important to keep if an employee spends a lot of money in cash while performing job duties.Continue Reading
When entering items in an expense report, an employee should provide detailed and itemized receipts so that each expense is evaluated and confirmed, reports Entrepreneur. The accounting department can then code each expense according to regulations and prepare a reimbursement for the employee.
Expense reports are commonly submitted for a specific time period, says The Law Dictionary. They can be submitted on a weekly, monthly, quarterly or yearly basis, depending on company policies and other considerations such as tax filing necessities and adherence. The expense report can also include subsections for departments, groups or different sets of employees, allowing the company to break down costs and expenses according to individual or departmental budgets.
The Internal Revenue Service commonly requires that a company provide yearly expense reports for tax purposes, so individual departmental expense reports need to be detailed and accurate to successfully compile the company expense report, advises The Law Dictionary. Both employees and the employer may qualify for deductions based on items detailed in an expense report.Learn more about Accounting