How to Create and Fill Out an Expense Report

As the CEO of a fast-growing startup, you’re trying to understand where every dollar is going. Managing cash flow and ensuring financial health is critical to keeping your business successful, so tracking expenses becomes essential.

For startups like yours, where every penny counts, an expense report is more than just a list of costs. It’s a tool that offers insights into your financial health, helping you make informed decisions and avoid costly surprises. So, let’s dive in and understand expense reports in detail.

What is on an Expense Report?

When you’re managing the financial health of your startup, every detail on an expense report counts. An expense report is a comprehensive snapshot of your spending, and it’s designed to give you the clarity you need to make sound financial decisions. Let’s break down the key components that you’ll find on a typical expense report.

1. Essential Information

• Company Name & Employee Details: Start with your company’s name, followed by the employee’s name, submitting the report. This keeps things organized and ensures accountability.
• Date Range: Specify the period during which the expenses were incurred. This helps categorize and track spending over time.

2. Expense Details

• Columns You Need:
  • Date: The exact date when the expense was made.
  • Description: A brief expense description (e.g., “Office Supplies”).
  • Code: Internal or project codes that help categorize expenses.
  • Category: Group expenses by type, such as “Travel,” “Meals,” or “Supplies.”
  • Amount: The cost of each expense, including taxes where applicable.

Here’s a simple example of what this might look like:

Date	Description	Code	Category	Amount ($)
01/08/2024	Office Supplies	101	Supplies	150
02/08/2024	Client Lunch	202	Meals	75

3. Totals and Approval

• Subtotal: Calculate the total for each category to see where most of your money is going.
• Grand Total: Add up all categories to get the final amount spent.
• Manager’s Sign-Off: Finally, ensure a space for a manager’s approval. This step is crucial for accountability and compliance.

Let’s see how these components come together in an expense report.

6 Steps for Creating an Expense Report

Creating an expense report might seem tedious, but with the right approach, it becomes a straightforward process that can save your business time and money. Following these six simple steps ensures that your expense reports are accurate, organized, and tailored to your company’s needs.

1. Choose a Template or Software

As a startup leader or finance professional, you know that time is money, and having a reliable system can save you both. There are two ways you can start building an expense report:

1. Using Templates

• Quick Start: Templates are a great starting point if you want to streamline the process with little setup. They come preformatted with essential columns like date, description, category, and amount, saving you from manual formatting. You can use tools like Asana, which offers premade templates that can be customized.
• Customization: You can easily customize a template to include your company’s name, logo, and specific details, such as expense categories relevant to your business needs. This ensures that your reports align with your company’s branding and operational requirements.

2. Opting for Software

• Efficiency: Expense-tracking software can be a game-changer for busy startups. It automates many manual tasks associated with expense reporting, such as data entry and calculation, reducing the risk of errors.
• Real-time Updates: It allows for real-time updates so you can track expenses as they happen. This gives you an up-to-date view of your financials, crucial for making quick, informed decisions.
• Integration with Accounting Tools: It integrates seamlessly with your existing accounting tools, helping you maintain accurate financial records without extra effort.

Comparison Example:

Feature	Template	Software
Setup Time	Minimal	Moderate (initial configuration)
Customization	High (manual adjustments)	High (automated, with more options)
Real-time Tracking	No	Yes
Error Reduction	Moderate (manual checks)	High (automated checks)
Integration with Accounting	No	Yes

Starting with the right tool can make all the difference in how effectively you manage expenses.

Bunker plugs into the most popular accounting software and imports your data with a few clicks. Without manual data entry, it is an excellent tool for expense tracking with expert features, as you will see in detail later in the article.

2. Edit the Columns

Once you’ve chosen your template or software, it’s time to tailor the columns to suit your business needs. The right columns ensure that your expense report captures all necessary details, giving you a clear view of your financial activities.

1. Standard Columns

• Date: Every expense should be recorded with the exact date it was incurred. This helps in tracking spending patterns and is essential for financial audits.
• Description: Provide a brief but precise description of each expense. For example, “Client Lunch” or “Office Supplies” offers enough context without cluttering the report.
• Category: Categorize each expense into similar costs, like “Travel,” “Meals,” or “Software Subscriptions.” This makes it easier to analyze where your money is going.

2. Customizing Columns

• Business-Specific Codes: If your business uses internal codes for projects or departments, add a column for these. This will help you track expenses against specific budgets or initiatives.
• Tax Categories: If you need to categorize expenses for deductions, include a column for tax-related information. This is crucial for ensuring compliance and maximizing tax benefits.

Example:

Date	Description	Code	Category	Amount ($)	Tax Deductible (Y/N)
01/08/2024	Office Supplies	101	Supplies	150	Y
02/08/2024	Client Lunch	202	Meals	75	N

Tailoring the columns to your needs helps maintain organized records and extracts meaningful insights from your data.

3. Add Itemized Expenses

With your columns in place, the next step is to add your itemized expenses. This step is crucial for ensuring accuracy and transparency in your expense reporting.

1. Detail Every Expense

• Line-by-Line Entries: Enter each expense as a separate line item. This level of detail ensures that everything is noticed and makes it easier to review and audit your expenses later.
• Chronological Order: Recording expenses in the order they occurred helps maintain a clear spending timeline, which helps track trends and identify discrepancies.

2. Include Necessary Details

• Description and Category: Provide a concise description and select the appropriate category for each expense. This helps organize expenses and makes it easier to spot areas where costs can be cut.
• Amount and Taxes: Ensure the amount entered is accurate and includes any applicable taxes. This is important for financial accuracy and for preparing tax documents.

3. Account for Special Cases

• Reimbursements: If an employee paid out-of-pocket for a business expense, note this for reimbursement purposes.
• Foreign Expenses: Expenses in foreign currencies include the original and converted amounts and the exchange rate used.

4. Calculate the Total

This step consolidates your data, giving you a clear picture of your overall spending.

1. Subtotal Each Category

• Category Totals: Begin by calculating the subtotal for each expense category, such as “Travel,” “Meals,” or “Supplies.” This helps you see where most of your budget is being allocated.
• Example Calculation:
  • If “Travel” expenses include $150 for airfare, $50 for ground transportation, and $200 for accommodation, the subtotal for “Travel” would be:
    • $150 + $50 + $200 = $400

2. Find the Grand Total

• The sum of Subtotals: Add up all the subtotals to get your expenses total. This number represents the total spending for the period covered by the report.
• Example Calculation:
  • If your subtotals are $400 for “Travel,” $100 for “Meals,” and $150 for “Supplies,” the total would be:
    • $400 + $100 + $150 = $650

3. Adjust for Previous Payments

• Over or Under Payments: If there were any previous overpayments or underpayments, account for these in your final total. This ensures that the amount reflects the proper balance owed or reimbursed.
• Example:
  • If there were an overpayment of $50 in a previous report, the adjusted total would be:
    • $650 – $50 = $600

Table Example:

Category	Subtotal ($)
Travel	400
Meals	100
Supplies	150
Grand Total	650

5. Attach Receipts

The attached receipts validate each expense, ensure compliance with company policies and tax regulations, and prepare for potential audits. It also demonstrates transparency and accuracy in your reporting. Moreover, they prove that the expenses were incurred, which is essential for reimbursement and for maintaining accurate financial records.

1. Methods for Attaching Receipts

• Physical Receipts: If you have physical receipts, attach them securely to your printed expense report. Consider using an envelope or stapling them neatly to avoid losing any.
• Electronic Receipts: For digital records, scan or photograph the receipts and attach them electronically to your report. Most expense-tracking software allows you to upload these files directly, making it easier to organize and retrieve them later.

2. Ensure Complete Documentation

• Match Each Receipt to the Expense: Make sure every expense listed on your report has a corresponding receipt. This helps verify your report’s accuracy and speeds up the approval process.
• Keep a Backup: Keep a backup copy of your physical or digital receipts. This is a precaution in case the original documents are lost or damaged.

Example Table:

Date	Description	Amount ($)	Receipt Attached (Y/N)
01/08/2024	Office Supplies	150	Y
02/08/2024	Client Lunch	75	Y

6. Print or Send the Report

Once your expense report is complete with all expenses itemized and receipts attached, the final step is to submit it. Whether you print or send it electronically, ensure everything is accurate and ready for review.

1. Double-Check Everything

• Review the Details: Before submitting, review your report one last time. Ensure all amounts are correct, receipts are attached, and there are no missing entries. This step is crucial to avoid any processing delays.
• Check for Errors: Look for typos, miscalculations, or missing information. A thorough review ensures your report is professional and error-free.

2. Choose Your Submission Method

• Electronic Submission: If your company accepts digital reports, export your report as a PDF or use your expense-tracking software to send it directly. Electronic submissions are often faster and easier for both you and your reviewer.
• Printed Submission: Print the report and any attached receipts if a hard copy is required. Ensure the printout is clear and legible, with all pages in order.

3. Submission Tips

• Email or Upload: If submitting electronically, send it to the correct email address or upload it to the designated platform. Double-check that all attachments, including receipts, are included.
• Physical Delivery: For printed reports, deliver them to the appropriate department or person, ensuring they receive them on time. Use a folder or envelope to keep everything organized.

Example Checklist:

Task	Completed (Y/N)
All expenses itemized and checked	Y
Receipts attached	Y
Report reviewed for errors	Y
Report printed or exported as PDF	Y
Report submitted (electronically/physically)	Y

Example Expense Report

After you’ve followed through the steps, you’ll create an expense report that will look like this:

Notes:

• Ensure all expenses have corresponding receipts attached.
• The total reflects all expenses for the period specified.

Learn more about operating expenses in this article.

Now that you know how to create an expense report let’s see how you can optimize it for accurate reporting and improve your company’s financial performance.

How to Optimize Expense Reporting Process?

Streamlining expense reporting can save time, reduce errors, and give you deeper insights into your spending patterns. Below are its benefits and how to implement them in your process.

Accurate Expense Reporting

For startups, where every dollar is vital, having precise expense reports helps track cash flow, maintain budgets, and instill confidence in investors.

• Minimize Errors: Automated tools like Bunker standardize the reporting process, significantly reducing the risk of manual errors.
• Ensure Precision: A consistent format captures all relevant data, leading to more accurate and trustworthy financial statements.

Strengthen Your Financial Health

Expense reporting is not just about tracking where the money goes; it’s about understanding its impact on your business. By optimizing this process, you can uncover significant savings and boost your startup’s financial health.

• Spot Cost-Saving Opportunities: With Bunker, you can analyze spending patterns, identify unnecessary costs, and save 10-20% of your annual expenses. See how Kargo reduced their operational expenses by 28% with Bunker.
• Enhance Cash Flow Management: Accurate and timely expense reports improve your ability to manage cash flow, ensuring your business remains financially strong and ready to seize growth opportunities.

Streamline Expense Reporting with Bunker

Bunker offers a robust, intuitive platform to streamline your expense reporting process while providing the granular insights you need to optimize your financial management.

• Granular Insights for Better Decision-Making:
  • Cost Tracking Across Regions: Understanding regional cost structures can be challenging if your startup operates across different regions. Bunker provides detailed insights into these variations, helping you make informed decisions tailored to each location. For example, Bunker can help you answer questions like, “What are the specific cost variations between regions?” and “How do operational models in different regions impact costs?” This level of detail ensures you’re not just tracking costs but also optimizing them based on local conditions.
  • Ad Hoc Spend Visibility: Unexpected or irregular expenses, often ad hoc spending, can easily slip through the cracks, affecting overall financial visibility. Bunker tracks this spending meticulously, ensuring comprehensive visibility into all financial movements. By categorizing and analyzing these expenses, Bunker helps you keep them under control, answering crucial questions like, “What are my ad-hoc spends, and how can I categorize them?” and “How can I keep ad-hoc spending under control?”
• Optimized Reporting and Variance Analysis:
  • Automated Variance Analysis: Bunker automatically tracks and highlights variances in your spending patterns, giving you an immediate understanding of where your finances deviate from the norm. This allows for quick corrective actions, ensuring your financial health remains intact.
  • Real-Time Expense Tracking: With Bunker, you’re always in the loop. Real-time tracking means you can see your expenses as they happen without waiting for the end of the month. This immediate visibility helps you stay on top of your financials, reducing the likelihood of surprises.
• Integration and Ease of Use:
  • Seamless Integration: Bunker easily integrates with your existing accounting tools, making the transition smooth and ensuring that your financial data remains consistent across all platforms. There’s no need for extensive training or complex setups—Bunker is built to be plug-and-play so that you can optimize your expense reporting process from day one.
  • User-Friendly Dashboard: Bunker’s intuitive dashboard provides all the information you need at a glance. Whether you’re reviewing daily expenses, tracking ad hoc costs, or analyzing regional spending variations, Bunker makes it easy to access and understand your financial data.

Optimizing your expense reporting with Bunker streamlines your processes and empowers you with the insights needed to make better financial decisions. With this foundation, you can ensure all reports are thoroughly documented by attaching the necessary receipts.

Ready to take control of your startup’s finances? Experience the power of Bunker—Start your 14-day trial today with no credit card required, and see how Bunker can save you time, reduce costs, and boost your financial health.