Expenses

Use expense reports to record and report expenses incurred during business-related activities. It serves as a formal record of costs that need reimbursed by the employer or accounted for in the company's financial records. Here's how the process typically works:

Expense Incurrence: Employees incur expenses such as travel, client meetings, or purchasing supplies while conducting business activities. These expenses may include meals, transportation, lodging, office supplies, etc.

Receipt Collection: Employees collect receipts for the expenses they incur. Receipts serve as evidence or proof of the expense and are necessary for reimbursement or accounting purposes. Receipts typically include details such as the date of the transaction, the name of the merchant/vendor, the items purchased, and the amount paid.

Expense Report Preparation: Once employees have collected their receipts, they compile them into an expense report. The expense report usually includes details such as the date of the expense, the purpose of the expense, the vendor name, the amount spent, and any relevant notes or comments.

Submission: Employees submit their completed expense reports, along with the corresponding receipts, to their employer or the appropriate department within the organization responsible for processing expenses. Depending on the company's policies and procedures, this may involve submitting physical copies of receipts or using digital expense management tools or software to upload and attach electronic copies of receipts to the expense report.
Approval: The submitted expense reports are reviewed and approved by designated approvers within the organization, such as managers or finance personnel. Approvers verify that the expenses are legitimate, comply with company policies and guidelines, and are appropriately supported by receipts.

Reimbursement or Accounting: Once approved, eligible expenses are reimbursed to the employee according to the company's reimbursement policy. Alternatively, if the expenses are charged to a company account or credit card, they are accounted for in the company's financial records.

Entering receipts involves attaching or associating receipts with the corresponding expenses within the expense report. This can be done physically by stapling or clipping receipts to a printed expense report or electronically by uploading scanned copies or digital images of receipts to an expense management system or software platform. This ensures adequate documentation to support each expense listed in the report.