Guide To Filling Out An Expense Report

Quick answer

• Understand your company’s expense policy before you spend.
• Keep all original receipts and digital copies.
• Categorize expenses accurately according to policy.
• Submit your report promptly after incurring the expense.
• Use your company’s designated expense reporting system.
• Double-check for accuracy before submitting.

Who this is for

• Employees who incur business-related expenses.
• Individuals new to a company with an expense reimbursement process.
• Anyone looking to streamline their reimbursement process and avoid delays.

What to check first (before you act)

Company Expense Policy

Before you spend any money on behalf of your company, familiarize yourself with its official expense policy. This document is your roadmap for what is reimbursable, what spending limits exist, and the required documentation. Ignoring this can lead to denied claims.

Approved Expenses

Not all expenses are created equal. Your company policy will clearly outline which types of expenses are eligible for reimbursement. This typically includes travel, meals, supplies, and professional development, but exceptions exist.

Documentation Requirements

Receipts are usually mandatory. Understand whether original paper receipts, digital scans, or even photos are acceptable. Some policies require itemized receipts, especially for meals.

Submission Deadlines

There’s often a time limit for submitting expense reports after the expense is incurred or after a trip concludes. Missing these deadlines can result in forfeiture of reimbursement.

Reimbursement Method and Timeline

Know how and when you’ll be reimbursed. Will it be direct deposit, a check, or added to your payroll? Understanding the typical turnaround time can help manage your personal cash flow.

Step-by-step (simple workflow)

1. Review Company Expense Policy:

• What to do: Locate and read your company’s official expense policy. Pay close attention to what is reimbursable, spending limits, and required documentation.
• What “good” looks like: You can confidently identify which expenses are approved and what proof is needed.
• Common mistake: Assuming you know the rules without reading the official document.
• How to avoid it: Bookmark the policy or save a PDF for easy reference. Ask your manager or HR if you have any questions.

2. Gather All Receipts:

• What to do: Collect all original paper receipts and save any digital receipts or confirmations for every business expense.
• What “good” looks like: You have a complete set of documentation for all expenses you intend to claim.
• Common mistake: Losing receipts or only keeping non-itemized ones when itemization is required.
• How to avoid it: Use a dedicated envelope or digital folder to store receipts as soon as you get them. Take photos of receipts immediately.

3. Identify Expense Categories:

• What to do: Determine the correct category for each expense based on your company’s policy (e.g., Travel, Meals, Office Supplies, Training).
• What “good” looks like: Each expense is clearly and accurately assigned to its proper category.
• Common mistake: Misclassifying expenses, which can lead to delays or rejection. For example, categorizing a client dinner as “travel” instead of “meals.”
• How to avoid it: Refer to the expense policy’s list of categories and examples.

4. Record Expense Details:

• What to do: For each expense, record essential details: date, vendor, amount, purpose of the expense, and who was involved (especially for meals or client entertainment).
• What “good” looks like: All necessary information is present for each line item in your report.
• Common mistake: Forgetting to note the business purpose or attendees for meals, which are often specific requirements.
• How to avoid it: Create a simple spreadsheet or use a note-taking app to log details as you incur expenses.

5. Use the Designated System:

• What to do: Access and use your company’s approved expense reporting software or template.
• What “good” looks like: You are familiar with the system’s interface and fields.
• Common mistake: Trying to submit expenses through unofficial channels like email without using the system.
• How to avoid it: Ask for a brief training session or user guide for the expense system.

6. Input Expense Data:

• What to do: Enter each expense into the system, filling in all required fields accurately, including the category, date, amount, and description.
• What “good” looks like: All expenses are entered correctly and match your gathered receipts.
• Common mistake: Typos in amounts or dates, or entering the wrong currency if applicable.
• How to avoid it: Double-check each entry against your receipt before moving to the next.

7. Attach Supporting Documentation:

• What to do: Upload or attach scanned copies or clear photos of all relevant receipts to each corresponding expense entry in the system.
• What “good” looks like: Every expense line item has its required documentation attached.
• Common mistake: Attaching blurry images, missing receipts, or attaching the wrong document.
• How to avoid it: Ensure receipts are legible. If using a mobile app, take clear photos in good lighting.

8. Review and Verify:

• What to do: Before submitting, thoroughly review your entire expense report. Check for mathematical errors, duplicate entries, missing information, and policy compliance.
• What “good” looks like: The report is complete, accurate, and ready for submission.
• Common mistake: Submitting the report without a final review, leading to simple errors that cause delays.
• How to avoid it: Take a break before the final review. If possible, have a colleague briefly glance at it.

9. Submit the Report:

• What to do: Follow the system’s prompts to submit your expense report to your manager or the designated approver.
• What “good” looks like: The report is officially submitted and you receive confirmation.
• Common mistake: Forgetting to click the final submit button, leaving the report in a draft state.
• How to avoid it: Look for a confirmation message or email indicating successful submission.

10. Follow Up (If Necessary):

• What to do: If you haven’t received reimbursement or heard back within the expected timeframe, politely follow up with your manager or the finance department.
• What “good” looks like: You are aware of the status of your reimbursement and any necessary actions.
• Common mistake: Not following up, leading to potential forgotten reimbursements.
• How to avoid it: Note the submission date and expected reimbursement period. Use this as a trigger for follow-up.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not reading the company expense policy	Reimbursable expenses denied, unexpected out-of-pocket costs.	Read the policy thoroughly before incurring expenses. Keep it handy for reference.
Losing or not getting receipts	Individual expenses or entire report denied due to lack of proof.	Collect and secure all receipts immediately. Use digital copies if allowed.
Miscategorizing expenses	Delays in processing, potential audit flags, or incorrect financial reporting.	Understand your company’s expense categories. Consult the policy or your manager if unsure.
Missing submission deadlines	Forfeiture of reimbursement for those expenses.	Note submission deadlines. Submit reports as soon as possible after incurring expenses.
Submitting incomplete reports	Report rejected and sent back for corrections, delaying reimbursement.	Review all fields and attached documents before submitting. Ensure all required information is present.
Typos or calculation errors	Delays, rejection, or incorrect reimbursement amounts.	Double-check all numerical entries and totals. Use the system’s built-in calculators.
Not detailing the business purpose	Expenses, especially meals, may be questioned or denied.	Clearly state the business reason for each expense, including attendees for meals.
Using personal funds for unapproved items	Out-of-pocket loss for expenses the company won’t cover.	Verify if an expense is reimbursable <em>before</em> you purchase it.
Failing to follow up on overdue reports	Delayed reimbursement, potential forgotten claims.	Track submission dates and expected reimbursement times. Follow up politely if delays occur.
Not understanding spending limits	Expenses exceeding limits will be denied beyond the allowable amount.	Be aware of any per-item or daily spending caps outlined in the policy.

Decision rules (simple if/then)

• If you are unsure if an expense is reimbursable, then consult your company’s expense policy or your manager before making the purchase because this prevents out-of-pocket losses.
• If a receipt is required for an expense, then ensure you obtain and keep it because without it, the expense is unlikely to be reimbursed.
• If you incur multiple business expenses during a trip, then keep them organized by date and type because this simplifies the reporting process.
• If your company has a specific expense reporting software, then use that software for all submissions because this ensures compliance and efficient processing.
• If an expense is for a client or guest, then note their name and the business purpose on the receipt or report because this is often a specific requirement for meals and entertainment.
• If you receive a reimbursement that appears incorrect, then contact your finance department or manager immediately because it’s easier to resolve discrepancies early.
• If the expense policy mentions “itemized receipts” for meals, then ensure the receipt shows individual food and drink items, not just a total amount, because this is a common requirement for verification.
• If you are submitting expenses for mileage, then use the company-approved rate and method for calculating distance because this ensures consistent and accurate reimbursement.
• If you are traveling for business, then keep track of all travel-related costs (flights, hotels, meals, ground transport) separately because these are distinct categories.
• If you are using a company credit card, then you still need to submit an expense report to reconcile the charges and provide documentation because the card is a company tool, not a replacement for reporting.
• If your company uses an app for expense reporting, then familiarize yourself with its features for capturing receipts and entering data because mobile apps can speed up the process.

FAQ

What is an expense report?

An expense report is a document that employees submit to their employer to request reimbursement for business-related expenses they have paid for out-of-pocket.

What kind of expenses are typically reimbursable?

Common reimbursable expenses include travel costs (airfare, lodging, transportation), meals while traveling for business, office supplies, business-related training, and client entertainment, but this varies by company policy.

Do I need to attach receipts for every expense?

Most companies require receipts as proof of purchase for most expenses, especially for amounts over a certain threshold. Always check your company’s specific policy regarding receipt requirements.

What if I lose a receipt?

If you lose a receipt, contact the vendor to see if they can provide a duplicate or an itemized statement. Some companies may have a policy for “lost receipt affidavits” for small amounts, but this is not guaranteed.

How long does reimbursement usually take?

Reimbursement times vary greatly by company. Some process reports weekly, while others may take several weeks. Your company policy or HR department can provide an estimated timeframe.

Can I claim expenses I made on my personal credit card?

Yes, provided the expenses are legitimate business expenses and fall within your company’s reimbursement policy. You will need to provide proof of payment, usually via a receipt.

What is the difference between an expense report and a reimbursement request?

They are often used interchangeably. An expense report is the formal document detailing all incurred expenses, and submitting it is the act of requesting reimbursement for those costs.

Should I include tips on my expense report?

Generally, tips for services like meals, taxis, or hotel staff are reimbursable if they are reasonable and customary for the location and service provided. Check your policy for specific guidelines.

What happens if my expense report is rejected?

If your report is rejected, it’s usually sent back to you with a reason. You’ll need to correct the identified issue (e.g., missing receipt, incorrect category, exceeding limits) and resubmit it.

What this page does NOT cover (and where to go next)

• Specific tax implications of unreimbursed business expenses (consult a tax professional).
• Company-specific software training or troubleshooting (refer to your IT department or vendor support).
• Negotiating company-wide expense policies (this is typically an HR or finance function).
• International travel expense reporting nuances (consult your company’s international travel policy or finance department).
• Mileage tracking best practices beyond policy adherence (explore dedicated mileage tracking apps if needed).