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Download expense report template in Microsoft Excel format.
The Meaning and Importance of Monthly Expense Report
There are some instances when employees of business organizations need to be reimbursed for verifiable business expenses of their business organizations which they incurred and paid for from their own purses especially when they go on business travels for their companies or in similar instances. Now, for the concerned employees to be reimbursed of their money, companies have a rule that such expenses must be reported within a given time frame. However, after submitting their expenses reports, it takes time for such reimbursements to be made. Therefore, such report submitted on a monthly basis is called monthly expense report.
The monthly expense report is very important to the employees as well as their employers. For example, where the employee was not reimbursed for such company expenses paid from his or her money, the expenses becomes useful when filing for personal income tax returns as a way to claim tax rebate. Every monthly expense report must bear details like travel destinations, transport fare expenses, accommodation details and the fees paid, food expenditures, and any other consequential expenses if the employees went on business travels for their company.
Companies generally use a fixed form format for making monthly expense report entries while quite a number of them use software like the Expense Management Automation (EMA) for online submissions and the corresponding approval procedures. Online processing of monthly expense report is usually very fast so that employees can have their reimbursements in record time. The software used for online processing of employees’ reimbursement also helps companies to trim and control costs by way of programming because employees’ travel expenses can really add up to become a major part of a company’s total expenses.
A research report by a Boston-based research body states that in a company’s income and expenditure analysis, one dollar usually go for employee travel expenses out of every five dollars the company spends. This report confirms that the monthly expense report of a company can really add up if not well managed. Therefore, companies are taking a critical look at these expenses by relying on firms like Visa International and the American Express which are the choice ones among credit card and travel agency companies which executives of most business organizations now depends on with memorandum of understanding for making travel arrangements for their employees in order to cut down on monthly expense report costs. Besides, expense management software also helps to eliminate fraudulent claims by employees.
The monthly expense report assists companies in assessing the level of honesty and integrity of their employees by making a call up of archive expense data to evaluate their employees when necessary and thereby make their own conclusion; after all, employees themselves filed up the reports as being genuine. It is therefore the responsibilities of employees to make sure they submit expense reports that are honest and shows the true expenses incurred while on business travels for their companies so that trust can be nurtured with their organizations.