It doesn’t matter whether you are self-employed and are your company’s only employee, or whether you have many people working for you, if you own a business than using expense report as a key component of financial management will make life much easier.
Using expense report is an easy way to streamline the process of keeping track of employee expenses and your company’s financial information. Throughout the year they will help you to create realistic budgets and financial plans, track expenditure, and figure out which areas you could potential save money in. During tax season, they will keep you from ripping your hair out as you work with your accountant, as you will have a great deal of useful information stored in one place.
Using expense report is a fairly easy process, and it doesn’t have to cost a lot of money. In fact, there are many free downloadable templates online. In order to properly use this tool, following these steps will make the process smooth and easy.
Whenever an employee uses a company credit card or needs to be reimbursed for expenses, an expense report should be filled out. The sooner this is done, the more likely it is that you will be able to gather accurate information with ease. It is best to have a strict timeframe in place that employees must adhere to for filling out an expense report.
You will need to decide whether each employee will fill out their own form, or whether all employees will turn in their information to one person who will be responsible for filling out all of the reports. There are pros and cons to each option, but many employers find it simpler to have one person oversee expense reports, rather than relying upon each employee to accurately complete their own in a timely manner.
Each report should include the employee’s name, identification number, and job title. The date of the expenditure should be noted. Details should include categories for what was purchased, the reason for the purchase, and the cost.
All reports can be personalized to fit the needs of your company. This includes creating categories for expenses. Some typical expense categories would be: Travel expenses, fuel, food, entertainment, and marketing supplies. Add or subtract categories as you see fit.
You can include all relevant information about your company on the form, such as company name, address, phone number, and if fitting, the name of the contact person who will be in charge of handling the reports.
Once your employees are comfortable with the process, it will become an easy part of the normal office routine. The filing of each individual report will not take more than a few minutes to complete, and will save you hours of work down the road. Failing to do so can create stressful situations that involve the painstaking task of tediously sifting through credit card statements and receipts, trying to figure out when, where, and why money was spent.
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