Most small businesses and sole proprietorship find it a challenge to keep accurate records of their regular expenses, as well as the expenses of their employees. The easiest way to do this is to make an expense report template that employees can fill out to record any expense that they pay out. It does not matter if you reconcile and file these reports on a weekly or monthly basis, or whenever you need to. The most important thing is that every bit of expense is on record.
It is not enough to have an expense report template ready, though. This can be easily done, as there are websites that you can download it from. These downloadable templates will usually have all the details that you need for your report. The more important thing is to make the filing of the forms a routine. Your report should necessarily include receipts of what you paid out, mileage documentary for your travels, even logs of phone calls that you made to overseas clients and suppliers. To make sure you don't leave out anything important when you make your expense report template, it is always better to have a checklist in mind. For example, your template should bear the signature of the person filing it. It should also include the dates when the expenses were incurred and paid out, as this would be useful when checking against available receipts. It should also ask for receipts to be attached, if there are any. Finally, it should also ask for accurate client information in relation to whom the expenses were made. You will need this when charging the expense back against the client account.
The sooner you get your expense report filing system in order, the better you can track your expenditures. If you allow your unreported expenses to pile up, thinking that you can always recall them when you need to, expect to fail to do so. Especially when running a business, remember that it is always better to be sure than to risk it.
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