Expense Report

An expense report is a detailed statement of recorded spending, expenditures, payments, and charges for a specific activity/event. Some common examples of such expenses are petrol charges, meals, phone call bills, etc. An expense report helps to monitor the capital outflows of a business. Thus, it is an important document to track business project spending. This document can be created manually or via online tools such as MS Word, Excel, PDF, or any accounting software. There are built-in expense report templates also available online for free for certain business activities.

The history of expense reports is as old as the history of business norms - around some 9000 years ago when humans first understood the basics of trade. Ever since man decoded the secrets of fruitful trade and record-keeping, expense reports exist in one form or another.

As time passed and civilizations evolved, modification in the form and format of expense report improved the structure. As paper was invented, it was more convenient for accountants to keep up with physical reports and maintain cash registers.

Eventually, digital technology replaced paper with software programs. Nowadays, we create expense reports using dedicated accounting software programs or online tools, such as MS Word, Excel, PDF.

It is necessary to know the uses of the expense report. The report assists businesses in the following ways.

• It helps to create a log of all the expenditures occurring in a project. This results in getting an idea of the overall cost of the project. This cost is momentous to extract the ROI (return on investment).
• It helps to reimburse the employees for any expenses they pay for on behalf of the company. This is commonly a culture in small factories or industries where only one to two persons are the owner of a business
• The document assists individuals in filing tax returns. Since the report is thorough and well-articulated. It possesses every detail that needs anyone to file a tax return.
• It is an old saying that, if you cannot measure it, you cannot control it. An expense report is a tool to measure and track the capital outflows to add value by eliminating non-value additional processes.

An expense report is the heart of a business circle. In businesses, expense reports are studied in detail at the end of each month when the Budget Variance Report (BVR) is presented.

It shows the financial status of a company and difference of planned budget of a certain month against the actual expense incurred during that particular month. During financial distress and recession, the document plays a pivotal role in presenting a detailed picture of the expenses and where the organization can cut the cost to run smoothly.

Expense reports are also useful in the planning of budget for an upcoming business cycle. It highlights previous expenses and inflation. This helps the finance team to forecast the next budget year. The document shows a business meeting where entrepreneurs are embarking on their journey of startup and attract sponsors reflecting the previous project expenses.

A typical expense report comprises the following key information in columns.

1. Name of the organization

Should be mentioned in the top left corner of the document.

2. Date of the report

These are necessary and written on the top main of the report.

3. Details of expenses

These are the particulars upon which expenses have been made.

4. Amount of total Expenditure incurred in the last column

All the expenses are summed up to get the amount of total expenses incurred for a project.

5. Signature and Date

To authorize the document, it must be signed by the employee and his/her Head of the department.

Following are the types of Expense Reports.

• A one-time expense report

It is useful if the business is not a regular one, and it is a pilot project. Then a one-time expense report is helpful.

• A recurring expense report

It is helpful in a small factory where suppliers visit the market daily to purchase goods.

• A long-term expense report

It is helpful in large organizations when at the end of each month and then at the end of the year, expenses are discussed to alter the strategy for the upcoming business month and year, respectively.

Following are the simple steps to create an expense report in Excel.

Step 1: Open Excel and click on New.

Step 2: Create an expense report from scratch, mention the name of the organization at the top of the sheet. Add expenses and make columns. Type in the particulars and amounts. Finally, sum up the amounts. Add the signature bar and date at the bottom of the sheet.

Step 3: Now, click on File to Save the expense report.

EdrawMax is one of the best drawing software out there. You can use it to create graphics, illustrations, poters, forms, reports and much more. It is available across multiple platforms like Mac OS, Windows and Linux. To use EdrawMax, you can download it on your PC for free.

Let us tell you how you can use EdrawMax to create an expense report quickly and easily. Just follow the steps mentioned below:

Step 1: Open Edraw

First of all, download and install Edraw Max software on your PC. Launch the app and click on New.

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• Superior file compatibility: Import and export drawings to various file formats, such as Visio
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Step 2: Go to Forms

Now scroll down to the last option i.e. Forms in the navigation pane on the left. Select “Expense Report” Option. Now you can click on a pre-designed free editable template or click on “+” to create one from scratch.

Step 3: Design Report

For the purpose of this article, we will use a free template. Now using the tabs (at the top) and the format window (on the right side), we will edit and customize the expense report.

Step 4: Save

Finally, once you are done, click on File to save your expense report. You can save it on your PC or on the cloud. You can also save it in different file formats.

EdrawMax

All-in-One Diagram Software

Create more than 210 types of diagrams effortlessly

Start diagramming with various templates and symbols easily

• Superior file compatibility: Import and export drawings to various file formats, such as Visio
• Cross-platform supported (Windows, Mac, Linux, Web, Android, iOS)

Free Download

Free Download

Free Download

Expense reports are an important part of regular business activities. If you want to create them using a simple and easy tool, use EdrawMax.