How to create expense reports online

Quick insights

• Expense reports help track how much money a business spends.
• Proper expense reporting can help streamline taxes when it’s time to file.
• There are many software programs that allow businesses to create expense reports online.

Expense reports are itemized lists of expenses made on behalf of a business. While new small businesses may not have many expenses to monitor, it can be important to set a process in place to accommodate for business growth over time.

Many businesses choose to create expense reports online to avoid human error that may come with manual tracking. Plus, you can access templates and automations that streamline the process when you use expense management software.

Read on to learn how to make an expense report, potential software options and more.

Benefits of tracking expenses online

Many companies choose to use online tools to track expenses online. Here are a few potential benefits of going paperless when managing expenses:

• Fewer human errors when inputting information
• Available templates to streamline the process
• Less hassle for employees submitting reports
• Lower likelihood of missing physical receipts

It’s also typically easier to facilitate reimbursements to employees when using online software, as both the business stakeholders and their employees can link their bank accounts.

Businesses also may choose to streamline the reimbursement process by using company credit cards. In this case, employees would have individual credit cards tied to the company. The Chase Ink suite of credit cards provide employee cards at no additional cost.

How to create an expense report with online accounting software

Expense reports may look different between businesses, but they all typically include information like a description of the expense, the exact amount spent, date of purchase, employee information and related receipts.

Here’s how to create an expense report using online software:

• Purchase software: There are plenty of options for expense reporting software out there. Research the best one for your business size and budget.
• Choose a template: Most software will include different template options. It can be helpful to stay consistent and use the same templates between different employees.
• Customize your template: Expense management software typically allows you to add or delete columns to ensure your report makes sense for your business needs.
• Create an itemized list: Each expense should be listed on its own line for clarity.
• Add receipts: It can be crucial to add receipts for each individual expense. When tax season comes around, this will make it easy to file for all available deductions.
• Categorize each expense: Categorizing expenses can make it easier to identify which expenses are tax deductible. This may also allow financial stakeholders to better monitor spending on separate categories and advise on future budgets.
• Calculate the total: Add up the totals for both the total amount and individual categories.

Next, it’s time to send your expense report to a finance manager or business owner for approval. Expense management software usually allows you to export to either Excel or PDF or send directly via email.

Common types of expense reports

Depending on your online management software, you’ll have different templates available to you. Below are common expense report types that many businesses across industries use:

Simple expense report

As the name suggests, simple expense reports are pretty straightforward. They usually include the date, expense category, expense details and reimbursement amount.

Monthly income or expense report

Monthly income or expense reports allow business owners to keep an eye on their expenses from month to month. These reports should be generated monthly to help business owners correctly add up annual expenses.

Weekly expense report

This report works similarly to monthly expense reports. Some companies may choose to do this to reimburse employees more quickly.

Recurring expense report

Categories like rent, utilities and salary are fixed expenses a business will pay out on designated days regularly. Business owners may choose to track these recurring expenses in the same report.

Travel expense report

Businesses that require employees to travel likely need to have travel expense reports. These reports may include information about airfare, hotels, food and other related costs.

Some companies also create more specific expense reports about mileage costs. These reports may require employees to include information about when they traveled, the reason for travel and the odometer reading in their car before and after.

In summary

Using online software to manage business expenses can help minimize errors in expense reporting and make the process easier for both individual employees and business owners. Even if your business is new, it can be important to stay consistent with your financial reporting.
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