What is an expense report?

An expense report is a simple but essential tool for managing business spending. It’s basically a record of the money someone spends on behalf of a company—things like travel, meals, supplies, or client meetings. When employees cover costs out of their own pockets, they use an expense report to document those expenses and request reimbursement. In other cases, it’s just a way for teams to keep track of where the money is going and why.

What does an expense report look like?

If you’ve never seen one before, an expense report usually looks like a basic spreadsheet. At the top, there’s space to enter the employee’s name, department, and the date range the report covers. Below that, you’ll find rows for each expense, including columns for the date, type of expense (like meals or travel), a short description, and the amount spent. Some reports also have space for approval signatures or notes, especially if they’re being submitted to finance or management for review. It’s straightforward, not flashy—just a practical format for organizing information.

How to create an expense report

Creating an expense report doesn’t require fancy software. You can do it in Excel, Google Sheets, or even by hand if you need to. Start by listing out each purchase. Be specific: include the date, what you bought, why it was necessary for work, and how much it cost. If you’re submitting the report for reimbursement, be sure to attach receipts or proof of purchase. It also helps to total everything up at the bottom so the person reviewing it can quickly see the overall amount.

What type of business uses an expense report—and for what?

Many types of businesses use expense reports. They’re especially common in industries where travel or client interaction is part of the job—sales teams, consultants, marketers, and nonprofit staff, for example. But they’re also helpful in smaller companies where budgets are tight and transparency really matters.

Whether it’s tracking office supply costs or documenting a multi-day business trip, expense reports help teams stay organized and accountable.
If you’re someone who handles budgets, manages employees, or files expenses yourself, learning how to use these reports effectively can save time, reduce confusion, and keep spending in check.