What is an expense report?

An expense report is specifically a document that itemizes and details the business expenses incurred by employees during the course of their work. This report is crucial for businesses as it serves as a means for employees to request reimbursement for costs that they have personally covered while conducting business. Typically, these expenses might include travel costs, meals, lodging, and other related expenses.

The importance of the expense report lies in its role in maintaining accurate records for financial management. It allows a business to track spending and ensure that employees are compensated for their out-of-pocket expenses. Moreover, it facilitates proper accounting practices, which helps in budgeting and financial planning.

In contrast, options like a budget plan focus on projected income and expenses for a period, a summary of profits and losses deals with the overall financial performance of the business, and a tax return document pertains to the filing of taxes and is prepared for government authorities. Each of these serves different purposes in the realm of financial management, reinforcing the distinct nature of an expense report within organizational finance.