Expense Report Template Excel & Google Sheets

What is The Expense Report Template?

A business expense report template is designed to help businesses and employees systematically record and manage expenses incurred during business activities. It ensures accurate tracking of expenditures, facilitates reimbursement processes, and simplifies financial management for tax purposes. This template is particularly useful for businesses of all sizes to monitor spending, enforce accountability, and streamline reimbursement workflows. It provides an organized format for employees to report out-of-pocket expenses incurred for business purposes, such as travel, rent, and supplies.

Importance of Expense Report Template

1. Track Business Expenses

Expense reports enable businesses to monitor and categorize spending over specific periods, such as quarterly or monthly. With this organized expense tracking, you can identify high-cost categories, recognize areas for cost reduction, and create a clear audit trail of expenses.

2. Ensure Timely Employee Reimbursements

Employees often use personal funds for business-related expenses. This template ensures that employees submit all relevant expense details and receipts so businesses can promptly review and approve reimbursements, and the reimbursement process stays standardized and transparent.

3. Simplify Tax Preparation

Many business expenses are tax-deductible. Properly documented expense reports will provide proof of expenses through receipts while aligning with tax agency requirements for deductible categories to reduce the time and effort needed during tax season.

4. Foster Financial Control and Accountability

Expense reports introduce accountability by requiring employees to detail their expenditures. They also help enforce adherence to company policies and detect and prevent unauthorized expenses while providing important data for financial analysis and decision-making.

What Does Expense Report Template Contain?

A small business expense report template includes:

1. Reporting Period and Purpose

Clearly define the time frame and purpose for tracking expenses.

2. Submission Details

All needed information about submission from employee and manager sides alike.

3. Expense Categories and Breakdown

The template organizes expenses into distinct categories, making it easy to log and summarize expenditures:

• Lodging: Hotel accommodations during business travel.
• Meals: Food and beverage expenses.
• Supplies: Office or work-related items.
• Parking: Parking fees during business activities.
• Airfare: Flight costs for business trips.
• Transportation: Taxis, ride-shares, or public transit.
• Rental: Vehicle and accommodation rentals
• Other: Various expenses like software subscriptions. 

4. Reimbursement Details

The total expenses plus any pre-paid deductions to finalize the reimbursed amount

How to Use Expense Report Template

1. Set the Reporting Period and Purpose

Define the start and end dates for the report, along with its specific purpose (e.g., quarterly expenses, client meeting expenses, etc).

2. Log Expenses

For each expense:

• Input the date and description.
• Allocate amounts to the relevant categories (e.g., lodging, meals).

3. Attach Receipts

Make sure receipts are included for each expense listed to validate claims and simplify the approval process.

4. Calculate Totals

The template’s built-in structure will automatically sum:

• Daily totals.
• Category totals.
• Overall expenses and reimbursements.

5. Submit for Approval

Submit the completed expense report, with receipts attached, to the relevant manager or finance department for review and approval.

6. Finalize Reimbursement

Once approved, the finance team should process the reimbursement based on the template’s calculations.