Expense reports: Definition, benefits, and how to complete them

Written byHenry Bewicke

ReimbursementsSeptember 24, 20258 minutes

Tracking expenses might not be the most exciting part of running a business, but it’s one of the most important. Every trip, meal, or client meeting costs money, and without proper records, it’s hard to see where that money goes. That’s why every company needs an expense report.

Employees submit expense reports to give finance teams a clear, itemised view of spending, whether the charges were paid personally or with a corporate card. It keeps budgets and tax records organised, and ensures all business expenses are accurately documented for compliance and reporting.

Yet many businesses still use manual spreadsheets that are slow to update and prone to human errors. This guide explains what an expense report is, how to create one the right way, and how Moss simplifies and speeds up expense management.

What is an expense report?

An expense report is a digital or paper document that records all of a business’s spending tied to a specific project or period. It lists every expense incurred, with details like the date, vendor, business purpose, amount, category, and description, plus any relevant receipts.

Companies use standard expense report templates or expense forms to ensure every transaction is accounted for and easy to audit.

Traditionally, people filled out expense forms by hand or used spreadsheets to track costs — a method many businesses still rely on. But manual record-keeping is time-consuming and error-prone. Online expense reporting tools reduce admin work for finance teams by automatically capturing transactions from linked accounts. They make it easier to track spending, stay organised, and reimburse employees faster↗.

Benefits of expense reporting

Expense reporting is an essential part of expense management — it helps track where company money goes, supports proper employee reimbursements, and keeps finances compliant and ready for tax season.

Here’s how a well-structured expense report helps your business stay compliant and in control of spending:

• Clear visibility of spending: An expense report gives finance teams a full view of all business expenses, helping them spot overspending and duplicate claims so they can stay within budget and control company spending.
• Accurate reimbursements: With every receipt and expense form organised, employees get reimbursed quickly and correctly, reducing back-and-forth with finance.
• Simpler tax compliance: Detailed expense reports help support tax deductions and audits. When you categorise expenses and back them with valid receipts, compliance becomes effortless.

Different types of expense reports

Every business handles spending a little differently, which means there isn’t one kind of expense report. The format usually depends on what the expense is for, how often it occurs, and who needs to approve it. Here are the most common types of expense reports.

One-time reports

These are used for single, ad-hoc business expenses, such as replacing a laptop charger, paying for a working lunch, or ordering office supplies. They’re quick to fill and easy to approve because there’s usually just one receipt and a short explanation.

Monthly or recurring reports

Teams that make regular purchases, like software subscriptions, need to complete monthly expense reports. It’s a convenient way to summarise all expenses incurred over the month and keep spending visible. Monthly expense reports make reimbursements and budget tracking smoother.

Travel and mileage reports

For employees on the move, travel expense reports keep costs — like flights and mileage — organised in one place. They’re especially useful for tax deductions and accurate reimbursements. Many companies now use online expense reporting tools to automatically capture receipts and calculate mileage, saving time and reducing errors.

Client or project-based reports

When employees work across multiple projects or accounts, client or project-based expense reports keep costs neatly separated. They help track expenses incurred for each project, making it easier to bill clients correctly and assess project profitability.

How to do an expense report: Step by step

Filling out an expense report isn’t complicated once you know what to do. The process is similar when you’re using an expense form template or an expense management software↗.

Step 1: Collect receipts and documentation

Start by gathering valid proofs of your business expenses. These documents support your claim and help finance teams track business spending properly.

Valid proof includes:

• Digital or paper receipts showing the vendor, date, and total amount
• Invoices for office supplies, services, or other tax-deductible costs
• Mileage logs for any travel expenses, including start and end points, and the reason for travel

Tip: Finance teams in the U.K. should keep expense receipts for at least six years↗ to be ready for an audit or HMRC review. Use an online expense reporting tool to scan and store receipts securely.

Step 2: Enter expenses in the form

Clearly and accurately log each expense in the report. 

To stay compliant with HMRC rules, ensure each entry includes:

• Date of the transaction
• Vendor or supplier name
• Expense category (meals, travel, accommodation, or office supplies)
• Amount paid, including subtotal, VAT, and total
• Business purpose (a description of why the expense was necessary)
• Payment method (cash, personal card, or corporate card)

Tip: Use a digital expense reporting system to maintain organised and accurate records. The system simplifies this step by flagging missing details and ensuring consistency across entries, reducing errors and accelerating approvals.

Step 3: Categorise expenses correctly

Mislabelled or unclear expenses trigger questions during approval.

Common expense categories include:

• Travel expenses: Flights, trains, taxis, parking, and mileage
• Meals and entertainment: Client lunches, coffee meetings, or team events
• Accommodation: Hotel stays or short-term rentals
• Office or project costs: Materials, equipment, or office supplies

Tip: Always review your company’s expense policy. Some costs — like alcohol or personal purchases — may not be eligible for reimbursement or tax deduction.

Step 4: Submit for approval

Once your itemised report is ready, double-check for accuracy and attach all necessary receipts. Submit the report using your company’s defined process or expense portal.

A typical U.K. expense reporting flow goes like this:

1. Manager review: Manager reviews the employee expense report for legitimacy.
2. Finance team approval: The finance team confirms amounts, checks VAT deductions, and approves eligible expenses for reimbursement.

Approvals usually take a few working days to a week, depending on company policy and submission timing. Month-end submissions may take longer due to higher volume, as everyone tries to meet the deadline.

Step 5: Track reimbursement or review status

After submitting, keep an eye on the progress of your expense report. Most expense management platforms send updates as reports move through review or payment stages. 

For manual reimbursement claims, follow up after 10-14 working days to confirm payment. If the expenses were paid with a corporate card, your report helps the finance team verify and record the transaction for compliance and tax purposes.

Expense report examples and templates

A good expense report clearly shows what was spent, why, and includes all supporting receipts. Here are a few examples to get you started.

Example 1: Simple employee expense report

This is the most common type of expense form used by small businesses to track travel or office-related expenses. Employees can submit it for reimbursement when they’ve paid out of pocket, or just to document spending.

Subtotal: £103.24

Total claimed: £103.24

Approved: ✓

Reimbursed: Pending

Example 2: Monthly expense log

For teams with many transactions, a monthly expense log helps track business spending across different categories. It provides a clear overview of trends and keeps finance teams organised for budgeting, audits, and year-round compliance.

Example 3: Ready-made templates

When setting up your expense reporting process, you don’t need to start from scratch. There are plenty of free expense form templates available online — from Excel and Google Sheets versions to built-in formats in spend management tools.

Choose a template that includes:

• Clear sections for itemised expenses
• Automatic subtotal and total fields
• Space for receipts and notes
• Manager approval and reimbursement status
  

Tip: If you’re tired of paper forms and manual entry, try a spend management platform↗ like Moss. It’ll handle the calculations, categorise expenses automatically, and store everything neatly for your next audit.

Why you should automate expense reporting

Manual expense reporting takes time, and the chances of inaccurate entries are higher. Automation simplifies the process:

• Receipt matching: Employees scan or upload expense receipts↗, and the reporting system links them to the correct transaction.
• Faster data entry: Some platforms automatically populate fields like date, amount, and vendor from the receipt, reducing manual input.
• Streamlined approvals: Reports go directly to managers or finance teams, with built-in checks to ensure accuracy.
• Near-real-time spending visibility: Finance teams can track uploaded receipts and synced transactions almost instantly, giving them up-to-date insights for budgeting and smarter decision-making.
• Improved compliance: Automated workflows make it easier to maintain proper documentation and audit-ready records.

Automating expense reporting with Moss

Tracking business expenses doesn’t need to be a chore. With Moss↗, all you need to do is scan receipts — the platform automatically fills your expense form, categorises transactions, and sends reports for approval, all in minutes.

Beyond saving time, automated expense reporting gives finance teams up-to-date visibility over spending so it’s easier to enforce budgets and maintain compliance.

Forget spreadsheets and paper receipts. See how simple expense reporting can be — book an intro with Moss↗ today.

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