Expense Reporting Mastery: A Guide to Better Reconciliation
Expense reporting is a necessary, yet dreaded part of business life. They serve as the primary means for employees to get reimbursed for company-related expenses, and they are crucial for organisations to maintain control over spending. However, creating and managing expense reports doesn’t have to be a time-consuming and frustrating process. In this guide, we’ll explore the world of expense reports, offering tips, best practices, and modern solutions to help you master this essential aspect of financial management.
Understanding the Expense Reporting Process
Before delving into the specifics, let’s start with a basic understanding of what an expense report is and why it’s important.
What Is an Expense Report?
An expense report is a detailed record of all the expenses incurred during a business trip or while conducting company-related activities. It typically includes costs such as transportation, accommodation, meals, and any other expenses necessary to fulfil one’s work obligations.
Why Are Expense Reports Important?
Expense reports serve multiple vital functions:
1. Financial Accountability: They help ensure that employees are spending company funds responsibly and in compliance with company policies.
2. Tax Deductions: Accurate expense reports are essential for both employees and organisations to claim tax deductions where applicable.
3. Budgeting: Expense reports provide a clear picture of where and how company funds are being used, enabling better budgeting and cost control.
Tips for Effective Expense Reporting
Keep Receipts and Documentation
The foundation of any expense report is proper documentation. Keep all receipts, credit card statements, and other proof of expenses to ensure accuracy and compliance.
Report Expenses Timely
Don’t procrastinate on creating your expense report. The sooner you submit it, the faster you’ll get reimbursed, and the fresher the expenses will be in your memory.
Categorise Expenses
Organise expenses by categories such as transportation, accommodation, meals, and miscellaneous. Proper categorisation simplifies the approval process.
Comply with Company Policies
Adhere to your company’s expense policies and guidelines. This will avoid issues with reimbursement and maintain financial integrity.
Consider Digital Tools
Use expense management software like Ortharize, Concur or Payhawk to simplify the process. These tools streamline everything from expense capture to approval workflows and reporting.
Modern Solutions for Expense Reporting
Expenses have evolved, and so have the tools to manage them. Here are two modern solutions that make expense reporting more efficient:
Expense Reporting Management Apps
Apps like Otharize, Expensify, Concur, and Payhawk offer a digital, streamlined approach to expense reporting and business expense tracking. They automate many tasks, from receipt scanning to policy compliance checks.
Company Credit Cards
Issuing company credit cards to employees can simplify the expense reporting process. These cards track expenses automatically, making it easier to categorise and report them.
The Future of Expense Reporting
As technology advances, it promises a bright future for expense reporting. Digital expense management software integrates artificial intelligence and machine learning, providing real-time insights and predictive analytics. Companies can now make more informed decisions about their spending, enhance compliance, and streamline the entire process using these tools and various apps.
How can Ortharize help with your reporting?
Travel expense reporting may not be the most glamorous aspect of your job, but it’s a critical part of financial management that ensures transparency, accountability, and cost control. By understanding the process, following best practices, and embracing modern solutions, you can make the expense reporting process smoother and more efficient. Ortharize can help with all of this when it comes to business travel. Our platform offers over a dozen reporting features with built-in automation to make reconciliation a breeze. You can try our platform for free, book a demo to learn more today.
