A simple expense report includes the itemized amounts an individual spends while fulfilling required job duties, explains Entrepreneur. Such expenses can include meals, travel, lodging, entertainment and work material. These reports are crucial to keep meticulous, particularly if the employee is paying with cash.Continue Reading
Employees should submit receipts with their itemized expense reports so each expense can be evaluated and approved by the proper department, according to Entrepreneur. After such approval, the employee can be reimbursed.
Expense reports cover specific time periods according to company policy and accounting practices, states The Law Dictionary. Thus, an expense report can cover expenses for a week, month or quarter. Expense reports can also be broken down into several categories, detailing expenses of specific individuals, departments or teams, or according to individual projects or tasks. This allows a company to charge expenses to the appropriate budget as required.
Companies have to file more comprehensive expense reports when fling taxes, says The Law Dictionary. Such expense reports are commonly compilations of smaller departmental expense reports and help a company fulfill regulations of the Internal Revenue Service. These expenses can also be used by a company's accounting department to qualify it for the relevant tax deductions. Employees may also qualify for certain deductions from expenses depending on the pay structure of the company.Learn more about Accounting