Best Expense Report Management: Expense Tracker 365

January 15, 2026

6 min read

Whenever employees purchase items on behalf of the company, it is necessary to have an effective means of documenting and analyzing such expenditures.

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Quick Read

Summary generated by AI, reviewed for accuracy.

Expense reports management brings order to how business spending is recorded and reviewed. It connects everyday employee expenses with clear financial control. When done right, it turns scattered receipts into reliable cost insights.

No matter what your team charges, be it company cards, allowances, all business expenses should be recorded to know where the money is going.

Expense reports are not only useful in supporting expense reimbursements. They assist organizations in preparing tax returns and keeping financial records to be audited and compliant.

This guide will discuss what expense reports are, why they are significant in the finance operations, and how businesses can develop and handle them in a systematic manner.

What Is Expense Report Management?

Expense report management is a process through which organizations manage, maintain, approve, store and analyze the spending of employees.

Expense reports are submitted by employees when traveling, meeting clients, or purchasing work-related goods to be repaid. The entire system of dealing with such requests, expense approvals and records is known as expense report management.

Every businesses, big and small, are faced with day-to-day costs. These can be travel tickets, meals, office supplies, software subscriptions or client meetings. Unless these costs are documented in an appropriate manner, the finance departments are unable to trace the money being spent.

Expense Reporting Process: A Quick Overview

This section gives a brief look at how expense reports are created, submitted, and reviewed within a company.

Step 1: Employee submits the expense report
The employee uploads his or her expense report with receipts and information about what he or she spent.

Step 2: Manager reviews the report
The manager or department head verifies whether the expenses are in accordance with the company regulations and are work related. In case all is well, the report is passed. Otherwise, it is returned or denied.

Step 3: Finance team processes the report
Once approved, the finance department will capture the amount as a business expense and make the payment to the employee.

Step 4: Reimbursement or adjustment is made
In case the employee used his or her own money, the company reimburses the money. If the employee was given an advance, the amount that was spent is subtracted against the advance.

Step 5: Records are stored
All expense reports and receipts are saved for accounting, tax, and audit use. This step-by-step flow assists companies to maintain records of expenses and payments.

Key Elements of an Employee Expense Report Management

All expense report management are built on several significant factors. These factors determine the ease with which the process is carried out by the employees and the finance departments.

Expense Categories
Each cost in expense reports management is grouped under expense categories. These groups allow finance teams to understand the way company funds are being spent. Some of the common ones are travel, meals, lodging, office supplies, internet fees, training, and client meetings.
With the right category chosen by the employees, the finance teams are able to make monthly and annual expenditure reports.
For example, An employee attends a business meeting in another city. Their airfare is included in Travel, their hotel is included in accommodation and their client dinner is included in Meals.

Receipts and Proof
The main proof to all expenditures is receipts. Receipts in expense reports management indicate what was bought, the price paid, the date and the name of the vendor.
Digital expense systems enable employees to post photos or scanned receipts. This saves on the storage of papers, and all files are stored at a single location.
In the absence of receipts, expense claims can be postponed or denied, and this can be problematic to both staff and finance departments.

Employee Details
Each expense report should be associated with the right employee. This contains the name of the employee, job position, department, project code and cost center.
Employee information in expense reports management enables the companies to verify spending habits by team or project. This assists the teams in knowing which departments consume more funds and why.
Example:
When a sales executive enters an expense report to meet the clients, the system displays their department as Sales and the project as Client Outreach. This assists the finance team to be aware of the purpose of the expenditure.

Approval Workflow
The approval process is the route that an expense report takes prior to payment. First, it is forwarded to the manager or team leader of the employee. They verify whether the cost is work-related and in accordance with the company regulations.
This is done to maintain expenditure within the expense report and avoid the inclusion of personal expenses to the expense report.
An clear flow of approval assists in minimizing delays and makes employees aware of the position of their expense report.

Finance Review
The finance department will examine every approved expense report and then release payment. They verify whether tax regulations are adhered to, whether the category is right, and whether the amount is equal to the receipt.
Finance review is a key part of expense reports management because it protects the company’s financial records. It also helps with tax calculations and monthly closing.
Example:
Whenever an employee submits a hotel bill, the finance team verifies the inclusion of tax and the amount of the bill is equal to the receipt uploaded before the payment is approved.

Payment Records
After an expense report has been approved, the details are entered. These are payment date, payment method and payment amount. These records assist in monitoring whether the employee has got his or her money.
Payment records also assist the finance teams in balancing reimbursements with bank statements in expense reports management.

When an employee was given an advance, the record of payment indicates the amount that was deducted against the advance and the amount that remains.

Why Expense Reports Are Important for Finance Management?

A study by GBTA says that, average cost to process an expense report for a single night hotel stay is $58 and takes 20 minutes to complete. This makes expense report management a practical way to control time and money while keeping financial records in good shape.

1. Better Finance Visibility
Expense reports provide finance departments with a clear picture of the direction of the company money. In every report, it indicates what was purchased, the time it was purchased and what team or project consumed the money.

With all this information in a single system, leaders are able to look at total spending by category, employee or department.

Under expense report management, the finance departments will be able to review monthly and annual reports and observe trends, including increased travel expenses.

2. Budget Management
Budgets are effective when expenditures are properly recorded. Expense reports indicate the amount of money that has been utilized and the remaining amount.

Expense report management enables finance teams to make comparisons between actual expenses and approved budget.

When a department is overspending, this is made known early enough and measures can be taken to correct the situation before the budget is exhausted.

3. Effective Employee Reimbursement
Business expenses like travel, meals or office supplies are usually paid by the employees out of their own pocket. The process enables them to be paid back in a systematic and transparent manner.

In the case of expense report management, the employees are aware of where to present their expenses and the status of their payment.

This helps in enhancing a superior work experience since the reimbursements are managed in an organized manner.

4. Compliance Assurance
Many business expenses are linked to tax rules and company policies. Expense reports record the reason, date, and amount of each cost.

This information helps finance teams follow internal and legal guidelines. A good expense reporting system keeps all receipts and records in one place.

This makes it easier to prepare tax documents and respond to audits without missing any required data.

Tax regulations and corporate policies are associated with many business costs. Expense reports document the reason, date and the amount of every cost.

This data assists in funding teams in accordance with internal and legal regulations. The expense reporting system should store all receipts and records in a central location.

This facilitates the preparation of tax documents and responding to audits without omitting any data required.

5. Fraud Prevention
False or personal claims are also minimized through expense reports. All reports should contain information and receipts, which will simplify the process of examining the spending by managers and finance departments

Expense report management will enable the companies to identify abnormal spending habits, duplication of claims, or large sums in specific categories.

This helps to keep the business afloat without incurring losses and maintaining clean spending records.

Types of Expense Reports Management

The expense report management can be of different types depending on how the business records, reviews and analyses the spending of its employees. The following are some typical expense reports.

1. Daily Expense Report
An expense report that is used daily is when an employee documents work-related expenditures on the day they occur.

This kind of report is applicable in minor purchases like meals, parking charges, office supplies or local traveling.

Daily expense report management provides the finance teams with fast access to the current expenditure information and assists in monitoring the current business costs.

2. Travel Expense Report
Travel expense report is prepared when employees use their time in traveling to meet business or training or visit clients. It covers airline tickets, hotel expenses, food and transportation expenses.

This report enables companies to monitor the amount of money spent in traveling and compare it with travel budgets.

In the context of expense report management, travel reports are relevant in tracking business trips and maintaining a tab on travel expenditures.

3. Mileage Expense Report
Mileage expense report is applied in cases where employees use their personal vehicle to work. The employee will record the number of miles or kilometres travelled and present it to be paid according to the company rates.

This form of a report is typical of sales teams, field employees or service technicians who move to various destinations.

Mileage expense report management helps compute the cost of traveling without the use of fuel receipts.

4. Per-Diem Expense Report
A per-diem expense report is calculated on a daily allowance that is fixed and provided to employees when traveling on business.

Employees do not hand in all the small receipts but charge a fixed amount on food, local travel, or other daily expenses.

Per-diem reports are useful in expense report management to monitor daily allowances and contain costs associated with travelling.

5. Corporate Card Expense Report
A corporate card expense report is the purchase that is recorded using a company-issued card.

The workers provide information of what they purchased yet the company has already paid the supplier. Such reports assist in aligning card transactions and business purposes as well as receipts.

These expense report management make ensure that card spending in the company is visible and documented.

6. Project or Client Expense Report
Such a report is applied in cases where the expenses are associated with a particular project or a client.

It can encompass travel, food or supplies utilized in that project. These reports make companies estimate the cost of every project or client.

Project-based reports are used in expense report management to aid in billing, budgeting and cost tracking.

7. Monthly Expense Report
An expense report is a monthly report that combines all expenses that are reported by an employee or a department within a month.

It provides an entire picture of the expenditure during that time and aids in budgetary checks. Monthly reports are used by finance teams to assess the total costs and compare them with the financial plans.

It also enables the managers to know where the bulk of the monthly budget is going.

8. Quarterly or Yearly Expense Summary Report
This report is a combination of expense data in three months or a complete year. The management primarily uses it to analyze trends in spending and budget in the future.

Such reports are useful in demonstrating the amount of money that the company has used in various categories and teams in the longer run.

It helps in long term financial planning and cost analysis to the business.

Challenges in Creating Employee Expense Reports

There are numerous moving components in employee expense reporting, and the circumstance may complicate the process where teams are unable to record, review, and manage expense information in a smooth and organized manner.

Missing or Incomplete Receipts
Receipts are significant in expense reports as they indicate what was bought and the amount paid. In cases where a receipt is not present or is not clear, the finance department might require additional time to examine the cost. To make the review process easier, it is better to keep the receipts safe and upload them along with the expense report.
Delays in Submitting Expense Reports
In some cases, employees may present their expense reports after a long period of time. Late reports make it more difficult to close monthly accounts and compile spending summaries by the finance teams. Timely filing of expense reports helps in better financial tracking and quicker processing.
Incorrect Expense Details
Expense reports are effective when all the details are keyed in properly including the amount, date, category, and purpose of expense. Small errors in such details might involve additional verification. Categorical and comprehensive entries assist the finance teams to document the expenses without additional procedures.
Approval Delays from Managers
Once an employee has submitted an expense report, it is sent to a manager. When this step is more time-consuming, the process is also more time-consuming. The fast reviews ensure the continuation of the expense reporting cycle and facilitate prompt reimbursements.
Difficulty in Tracking Reimbursement Status
Employees tend to prefer to know when their reimbursement would be done. Status updates that are not readily available might require them to request updates. A clear picture of the payment stage will keep everyone updated and minimize follow-up requests.

How Expense Tracker 365 Helps Manage Expense Reports

Expense Tracker 365 is a tool that is meant to facilitate expense report management in any business regardless of size. It offers a single platform to place, review, approve and monitor expense reports.

Receipts can be uploaded by the employees into the system. Managers will be able to review expense reports on a single dashboard. Finance teams can track expenditure, export data and prepare audit and budget reports.

The software also links the expense data with Microsoft 365 tools. This enables teams to handle expense reports within tools that they are already familiar with.

It also allows companies to have greater control over the management of their expense report without using spreadsheets or emails.

How to Create Management Expense Reports Using Expense Tracker 365?

The following are the steps that can be followed to develop management expense reports with Expense Tracker 365. To get further information, visit the product knowledge base.

Step 1: Open the Expenses Filter

On the Expenses tab, you can start making your expense report by clicking on the Filter icon.

Step 2: Enter Filter Details

The Report page has the necessary fields to be filled in and the details to be added depending on the reporting requirements. Click on Apply Filter to show the filtered information.

Step 3: View Reports Based on User Role

Regular users will have user-specific reports on the report page, and administrators will be able to see all user reports.

Step 4: Review Expenses by Project

Expense reports by project can be seen in the Project section. When one clicks on any project, the number of expenses that have been recorded under a project is displayed.

Step 5: Review Expenses by Expense Type

The Expense Type report shows the expenses in categories. Clicking on any entry gives you an opportunity to see the number of expenses under that category.

Step 6: Review Expenses by Cost Center

The Cost Center section gives the expense data according to various cost centers. By clicking on an entry, all associated expenses are shown.

Step 7: Review Expenses by Department

Expenses are categorized in the Department section by departments. You may choose any department to view the expenses incurred in the department.

Best Practices To Implement During the Process

There are some best practices that can be applied practically to assist in the management of expense reports and assist teams in capturing, reviewing, and storing expense information in a structured manner during the process.

Set Clear Expense Policies
Definite expense policies provide employees with a common idea of what kind of expenditure can be reported and to what extent. With such guidelines properly written and readily accessible, individuals can prepare their expense reports more clearly. This also helps in management of expense reports by ensuring that entries are in line with the company expectations across teams.
Use Digital Tools for Expense Reports
Digital tools offer an easy method of recording and submitting expenses by the employees. Rather than using paper or email, all data is kept in a single location and it is easier to review spending data by finance teams. This method aids in the management of expense reports to ensure that the data is well organized and accessible.
Ask Employees to Submit Receipts on Time
Receipts should be submitted in time so that expense details remain accurate and complete. The supporting information is more accurate and can be matched with the reported amounts when the employees post the receipts shortly. This practice is significant in expense report management because it maintains records.
Review Reports Regularly
Periodic examination of expense reports will enable the finance teams to keep up with the company expenditure trends. It also assists the management to know the way budgets are spent in departments and projects. Constant review helps in controlling expense reports by maintaining financial records that are up-to-date.
Store Records for Audits and Tax Needs
Storing expense reports and receipts in an organized manner assists the businesses to look back at the previous transactions when need arises. This is useful in the preparation of audit and tax reporting, and internal financial reviews. Good record keeping will also bring long-term value to expense report management as it will provide a full history.

Conclusion

One of the aspects of business finance is expense report management. It assists businesses to monitor expenditure, budget control and audit and tax records. Since the employee submissions to the finance approvals, each of the steps contributes to the control of business expenses.

By using such tools as Expense Tracker 365, companies can handle expense reports within one system and have a more effective overview of their financial operation.

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Frequently Asked Questions

What details should be added to an expense report?

The simplest information to be contained in an expense report would be the date of purchase, the amount paid, the purpose of the expense, and a copy of the receipt. It can also contain the project name, department or cost center associated with the expense.