What is an expense report used for?

An expense report is specifically designed to account for incurred business expenses, allowing employees to record and categorize the costs they've incurred while conducting business activities. This report serves as a formal request for reimbursement from the employer. Employees document the details of their expenses, providing necessary receipts and descriptions, which the company reviews before processing reimbursement.

This process is crucial for ensuring accurate financial records and maintaining the integrity of the company's budgeting and financial planning. By using an expense report, organizations can track spending, ensure compliance with company policies, and manage overall expenditures effectively.

In contrast, tracking employee hours worked primarily relates to payroll and attendance, summarizing a company's monthly earnings pertains to financial reporting rather than individual expense claims, and outlining annual financial goals is focused on strategic planning rather than reimbursement of specific expenses.