The Expense Reports and its Roles in the Business

Expense reports play a vital role in the business organizations in many ways. They become important part of record for the employer for the tax purposes. The total income of an organization comes after all the expenses are deducted from the total revenue earned by such organization. That means the expenses mentioned on the expense report also become part of total expenses of an organization and they are not subjected to taxes. The expenses shown in the expense reports go into the expenses and they can be shown to tax authorities at the time of need.

An expense report is usually in shape of forms which are filled up by the employees when they spend from their pockets during representing the employer or organization for the purposes of business. The expenses usually are of travelling, eating, staying and similar ones which are mentioned on the expense report. The employer reimburses the employee with the expenses so made and the expense report eventually becomes an important part of the record for the organization. Even some of the good employees give bonuses to employees who spend wisely while spending on behalf of the employer.

The expense report is a way which strengthens the relationship between the employee and the employer. Expense report shows credibility of both the employee and the employer. Good employees spend wisely while representing the organization and they fill up the expense report honestly. Similarly the good employers pay the employees in less span of time the expenses so mentioned on the report. If both of them keep working honestly then things shorten up the distances and relations between the two improve.

The expense report can perform as performance evaluator for the employee. It shows an employer clearly how extravagant or wise an employee is. The employer can track various kinds of expenses made by the employees during staying, eating and traveling to different destinations for the organization of the employer. The expense report can serve as an important tool for reducing the expenses for future when the employees are out to spend on behalf of the employer.