Unless you’re a traveling salesperson or an accountant, you probably don’t know what an expense report is. But when it comes to keeping track of your expenses and plan your budget accordingly, an expense report is essential. Think of it as a financial travel journal that tracks everything from the flight you take each day to the hotel you stay at. It records all of your expenses so that you can see how much money you are spending and where it’s going. Most importantly, it helps you identify wastes of money and excesses on which you should focus your personal finances.
What is a travel and expense report?
A travel and expense report is a log of all of your expenses during a certain timeframe. It records all of your travel, food, and other costs incurred during your trip. You may also purchase a hotel or flight destination report to track your trip. Websites like Skift, which offer trip planners with extensive expense tracking features, enable you to track all of your travel and hotel costs as you travel.
Why make one?
If you keep track of your travel and hotel expenses, you’ll be able to see where your money went and identify areas of waste. You should do this regardless of whether you’re planning a trip yourself or just want to know where your money is going. Travel and expense reports can also be used as a form of literature. glanced through the report one day and realized there was an expense that I hadn’t taken into consideration. The report turned out to be due to include a car rental that I had forgotten about. The total for the car rental was about $80 and I had only booked it a week before my trip.
What should you include in your expense report?
Travel expenses: The expenses that you list as part of your expense report are your primary focus. While you don’t have to include every single expense you incur while traveling, it’s helpful to include the major expenses such as the flight, hotel, and car rentals. If you’re unsure how to record or report your travel expenses, Google can help. Many of the tracking websites provide examples of how to report your travel expenses and the website will suggest expenses that you may not have thought of. Accommodation expenses: When you stay at a hotel, you’ll often incur room costs such as the room rate, taxes, and any breakfast or dinner charges. These are also known as expenses associated with rooming. While you don’t have to list every single room charge you incur, it’s helpful to record them all. You may also consider recording any food costs such as the cost of breakfast, lunch, or dinner. You may also want to include drinks you consume while traveling. Transportation expenses: If you take a plane, train, or boat, you may incur travel or transportation expenses. These may include the plane ticket, train ticket, or boat ticket. If you drive, you may incur car expenses such as the car rental, maintenance, and gas. These may also include the car insurance, which you may want to renew each year. Other expenses: Other than the above, other expenses such as tips, transportation back to your home country, and medical costs may come to mind.
The benefits of making an expense report
You may find that some of the costs you record in your expense report are trivial and some are large. The first benefit is that it helps you identify areas of waste in your spending. You may have spent $100 on dinner a week ago and now that’s gone. But $100 may seem like a small price to pay for a vacation, but if that vacation was going to help you grow your finances, then it would be worth it. You may find that many of the expenses that you record in your expense report are unnecessary or even harmful. For example, a flight that takes you to a destination that you love but doesn’t bring you any new knowledge or skills is a waste of money. The same goes for a vacation that only brings you down and ruins your health.
Timing is everything
Travel and expense reports are important throughout the year, but they’re especially important during the planning phase of a new business venture. You may be thinking that you don’t need to keep track of your travel and hotel expenses during the year you’re trying to get your business up and running, but you do. Travel and expense reports can provide you with invaluable information during the year of your business’s growth. You will be able to see where your money is going and where it could be going in a more effective and efficient manner. You’re essentially trying to create a budget for yourself during this transition period and these reports will help you better understand where your money is going and how it’s being used.
Conclusion
An expense report is a log of all of your expenses during a certain timeframe. It records all of your travel, food, and other costs incurred during your trip. You may also purchase a hotel or flight destination report to track your trip. An expense report can be used as a way to identify wastes of money and excesses on which you should focus your personal finances.