How to make an expense report

Expense reports may not be the most thrilling part of your workday, but they're essential for keeping your company’s finances in check. They help ensure every dollar is accounted for, whether it’s for a business lunch or a flight to meet a client. Understanding where the money goes is crucial for budgeting and planning.

Components of an expense report

Basic information

Start your expense report with the essentials. Include your name, the date, and your department. This helps identify who is submitting the report and when it was created. Clearly state the purpose of the expenses. Whether it's a business trip, a client meeting, or a conference, specifying the reason provides context and justifies the costs incurred.

Expense categories

Organize your expenses into clear categories. Travel expenses cover costs like flights and accommodation, ensuring you track all travel-related spending. Meals and entertainment include dining costs and any client entertainment expenses. Office supplies and miscellaneous expenses capture everything from stationery to unexpected costs. Categorizing helps in analyzing spending patterns and simplifies financial tracking. Understanding the types of expense accounts can further enhance your categorization process, providing clarity and structure.

Receipts and documentation

Keep all receipts related to your expenses. Receipts serve as proof of purchase and are necessary for reimbursement and tax purposes. Acceptable documentation includes digital receipts, printed invoices, or even credit card statements if receipts are unavailable. Proper documentation supports your claims and ensures a smooth reimbursement process.

How to create an expense report

Navigating the expense reporting process can be daunting, especially when you’re trying to ensure every detail is correct. Mistakes can lead to delays and compliance issues. So, how can you make the process smoother? Consider creating automated expense reports to enhance accuracy and efficiency.

Collect receipts

Start by gathering all receipts related to your expenses. Whether it's a digital receipt from an online purchase or a paper receipt from a business lunch, keep everything organized. Receipts serve as proof of your spending, ensuring you get reimbursed accurately. They also help in claiming tax deductions, making them a necessary part of the process.

Itemize expenses with details

Once you have your receipts, create an itemized list of your expenses. Sort this list by date to maintain a clear timeline of your spending. For each expense, add columns that include a description, a code that aligns with your company's accounting system, and any other relevant details. If an expense requires specific information, such as mileage for travel, include those details as well. This level of detail helps in verifying expenses and simplifies the approval process.

Categorize expenses

Next, categorize your expenses to streamline the reporting process. Group similar expenses together, such as travel, meals, and office supplies. This organization helps in understanding spending patterns and managing budgets. For each category, calculate subtotals to see how much was spent in each area. Finally, sum up all the expenses to get a total amount. This breakdown provides a comprehensive view of your spending.

Submit the report

Before submitting your report, double-check all totals to ensure accuracy. Attach all relevant receipts to support your claims. Depending on your company’s policy, you may need to submit the report electronically via email or a dedicated system, or you might print it out for a physical submission. Following the submission guidelines ensures a smooth review and reimbursement process. Consider how you can automate expense approvals to enhance efficiency and reduce processing time.

Tips for efficient expense reporting

Managing expense reports can be challenging, but there are strategies to streamline the process.

Standardize report templates

Develop standardized templates for different types of expenses, such as travel or office supplies. This ensures all employees provide consistent information, reducing errors and simplifying the review process for managers. Consistency speeds up approvals and enhances clarity.

Implement software solutions

Transitioning from spreadsheets to dedicated expense reporting software can significantly improve efficiency. Such software offers preset templates, instant approval processes, and automated discrepancy checks. This reduces waiting times for reimbursements and minimizes delays caused by missing information.

Go paperless

Using dedicated software allows for a paperless approach, cutting costs related to printing and storage. Employees can submit reports digitally, enabling managers to review and approve them remotely. This not only declutters the workspace but also fosters a more sustainable and efficient workflow.

Eliminate manual expense reporting with Ramp

Managing expenses efficiently can be a challenge, and Ramp is here to help. Our platform automates receipt capture, streamlines reporting, and integrates seamlessly with your existing accounting systems. Explore how our expense management solution can enhance your finance operations and support your business’s growth. Request a demo to see Ramp in action.