6 Min. Read
6 Steps to Create an Expense Report: A Guide for Small Businesses
A newfangled small business may not have many expenses to track. But as you grow, your expenses will multiply. You ’ ll need to track how much you ’ re spend via an expense report kind .
An expense report will besides make certain you ’ re prepare come tax time. many expenses can be deducted from the sum measure owed, according to The Balance.
Creating your own expense report doesn ’ metric ton need to be daunting. Follow the steps below to learn how to make your own expense report cursorily and well .
not certain what an expense report is ? This article includes a aboveboard definition and discusses why expense reports are important for little businesses .
In this article, we’ll cover:
1. Choose a Template (or Software)
To make an expense report, you should use either a template or expense-tracking software. Making an expense report from boodle can be time consuming .
To create an expense report in Excel, PDF, Word or other popular programs, you need to download a template. here are some options :
Customize the template with your company name, the go steady range you ’ re report on and your diagnose .
To save time as your business ( and number of expenses ) grows, you ’ ll want to upgrade to expense-tracking software. Link your business bank bill therefore that expenses are added as you go. Or use the equate app to photograph newspaper receipts as you get them .
hera is expense report sample generated with FreshBooks :
source : FreshBooks
2. Edit the Columns
FreshBooks ’ expense reports has standard columns you can use to adapt your expense report template, if needed. The column are :
- Date: when the item was bought
- Vendor: where the item was bought
- Client: what client the item was bought for
- Project: what project the item was bought for
- Account: to indicate a client or project
- Author: who bought the item
- Notes: notes to explain the expense
- Amount: cost of the expense
Your columns should reflect park expenses in your business. If you regularly take out clients for coffee bean or dinner, you need a “ locomotion and meals ” column. If you drive a fomite for business purposes, you need a “ car and truck expenses ” column, according to The Balance .
expense reports can separate out expenses by tax class, like economic rent. This is because the IRS allows businesses to claim some expenses as deductions and asks them to break out the totals by category ( this article has more information ) .
These categories include :
- Car and truck expenses
- Employee benefit programs
- Office expenses
- Pensions and profit-sharing plans
- Rent or lease
- Repairs and maintenance
- Taxes and licenses
- Travel and meals
3. Add Itemized Expenses
Add each expense on a new line, being certain to fill out a much information as possible. Be certain to indicate what client and project the expense is for to ensure accurate trailing.
insert your expenses in chronological ordering so the most holocene expense is at the end. Add the measure of each expense, tax included .
4. Add up the Total
Each category has a subtotal on an expense report and then a august total of all expenses. You can add this have to your expense report template, if you like, so you can better see how you ’ re spending in each category .
then find the full. Account for any former over or under payments, if you ’ re reimbursing an employee .
5. Attach Receipts, If Necessary
Employees submitting expense reports for reimbursement will absolutely need to attach receipts to justify their claims. If printing the expense report, tape the receipts onto a piece of printer paper and photocopy them so you can keep the originals .
If submitting the expense report electronically, scan the receipts and attach them as files. entirely then can an employee be reimbursed .
evening if you ’ re a business owner generating an expense report card to track spend, you ’ ll motivation to keep your corresponding receipts or invoices. If you ’ rhenium deducting your expenses on your taxes you need a accompaniment in casing you get audited, according to The Balance .
6. Print or Send the Report
immediately your expense composition is quick. First, duplicate check your exploit, specially the figures and the full .
Expense-tracking software can export your report to Excel so you can print or share it more easily .
People also ask:
What Is on an Expense Report?
An expense report is typically a spreadsheet. The follow items can typically be found on an expenses spreadsheet :
- The name of the company
- Your name
- Date range or time period
- Columns such as date, description or explanation, code, category columns such as “fuel or mileage”
- A list of expenses
- An area for the manager to sign off on the expenses
How Do You Create an Expense Sheet?
An expense plane is the same as an expense report. To create an expense sail, follow the steps above .
In short, the steps to create an expense sail are :
- Choose a template or expense-tracking software
- Edit the columns and categories (such as rent or mileage) as needed
- Add itemized expenses with costs
- Add up the total
- Attach or save your corresponding receipts
- Print or email the report
How Do I Manage My Expenses in Excel?
Creating an expense report spreadsheet in Excel is a elementary way to manage your expenses.
Read more: Credit Saint Credit Repair Review
You have a couple of options. You can download an Excel expense report template. Microsoft Office has a great template for Excel. It has typical business and travel expense categories and automatically calculates the sum for you .
You can besides create your own Excel spreadsheet from rub :
- Open a new Excel spreadsheet
- Write the name of your company, time period being tracked and your name in the upper left hand fields
- Leave one row black. Make columns to categorize your expense information. Standard columns, from left to right, include Expense, Type, Date and Amount.
- Itemize your expenses, from the least recent to most recent
- Add up all the expenses and include the amount at the bottom. Write “Total” beside it.
- Print out or email the expense report