Expense reports: What they are and how to manage them efficiently

Managing expenses is a vital part of running any business, and one of the key tools in keeping spending organised is the expense report. Whether your team is travelling for work, purchasing supplies, or incurring day-to-day costs, having a clear and consistent system for documenting and reviewing those expenses is essential.

In this guide, we’ll cover what expense reports are, how they’re used, what to include, and how modern businesses are managing them more efficiently with digital tools.

1. What is an expense report?
2. Why are expense reports important?
3. Types of expense reports
4. The expense reporting process
5. Real-world example: MJ Landscapes & Maintenance
6. How Budgetly can assist
7. Final thoughts: Expense reporting without the friction

What is an expense report?

An expense report is a document used by employees or departments to record business-related expenses. These reports are typically submitted to an employer or finance team for review and reimbursement, or simply for internal tracking if expenses were made using a company card or pre-approved budget.

Expense reports can be as simple as a spreadsheet with attached receipts or as advanced as a digitally generated report pulled from an expense management platform.

Why are expense reports important?

Expense reports serve several critical functions within a business:

• Financial tracking: They provide a clear record of where and how company funds are spent, aiding in budgeting and financial planning.

• Reimbursement: They ensure employees are reimbursed accurately and promptly for out-of-pocket expenses.

• Compliance: They help maintain compliance with tax laws and internal policies by providing necessary documentation.

• Fraud prevention: Regular and detailed reporting can deter and detect fraudulent activities.

Free up time and reduce admin with Budgetly’s resources - just a click away.

Types of expense reports

Different business needs require various types of expense reports:

One-time expense reports

Used for occasional expenses, such as purchasing office equipment or attending a single event.

Recurring expense reports

For regular expenses like monthly subscriptions or routine travel.

Travel expense reports

Detail expenses related to business travel, including transportation, lodging, and meals.

Project-based expense reports

Track expenses associated with specific projects, aiding in project budgeting and profitability analysis.

The expense reporting process

A n effective expense reporting process typically involves the following steps:

1. Expense incurred: The employee makes a purchase for business purposes.

2. Documentation: Receipts and necessary details are collected.

3. Report creation: The employee fills out an expense report, categorising each expense.

4. Submission: The report is submitted to the appropriate manager or finance department.

5. Review and approval: The report is reviewed for accuracy and compliance with company policies.

6. Reimbursement: Approved expenses are reimbursed to the employee.

Implementing automated expense management systems can streamline this process, reduce errors, and save time.

Real-world example: MJ Landscapes & Maintenance

MJ Landscapes & Maintenance, a growing Australian landscaping business, faced challenges in managing employee expenses and ensuring accurate record-keeping. The finance team spent considerable time tracking down receipts and manually entering data, leading to inefficiencies and potential errors.

By adopting Budgetly's expense management platform, MJ Landscapes & Maintenance achieved significant improvements:

• Time savings: The team saved approximately two hours per day on expense administration.

• Improved accuracy: Real-time expense tracking and receipt capture reduced errors and enhanced data accuracy.

• Enhanced compliance: Automated categorisation and policy enforcement ensured compliance with tax regulations and internal policies.

This transformation allowed the company to focus more on strategic financial planning and less on manual administrative tasks.

How Budgetly can assist

Budgetly offers a comprehensive expense management solution tailored to the needs of Australian businesses:

• Real-time tracking: Monitor expenses as they occur, providing immediate visibility into spending.

• Automated categorisation: Expenses are automatically categorised, simplifying reporting and analysis.

• Receipt capture: Employees can capture and upload receipts instantly via a mobile app.

• Policy enforcement: Customisable rules ensure expenses comply with company policies.

• Integration: Seamless integration with accounting software like Xero streamlines financial processes.

By leveraging Budgetly, businesses can enhance efficiency, reduce administrative burdens, and maintain accurate financial records.

Final thoughts: Expense reporting without the friction

Expense reports are a necessary part of business life—but they don’t need to be time-consuming or frustrating. With the right system in place, your team can spend less time chasing receipts and more time doing what matters.

Want to see how Budgetly simplifies expense reporting for growing teams?

Schedule a demo with us today, or watch a 10-minute recorded demo!