Expense report has great essence in the corporate world because of many reasons. One of the reasons of significance of expense report is that it becomes part of record of total expenses of an organization which helps the employer in calculating the total net income of the organization. Expense reports reduce the burden of work on the part of accounting department because many kinds of business expenses appear in written form with the help of expense reports.
An organization can have correct calculation of net income when it has expense reports readily available. Expense reports are filled up by the employees and they are usually in shape of forms in which the employees input data. The data in the expense reports are expenses made by the employees while representing the organization at any level. These expenses are usually of traveling, of meals and of staying during business tours. Usually the employees pay these expenses from their pockets and they get reimbursed by the employer for the same after filing the expense report.
Expense report has great essence for the employer because he/she can keep a track of different kind of expenses made by the employee when such employee is sent with a responsibility. It shows the employer how dedicated and responsible an employee is while representing the organization. When the employee spends wisely it increases the importance of such employee for the organization. The employer gets an idea of giving bonuses and promotion to such kind of employee. So we can say that expense reports can help the employers in evaluating performance of the employees.
Another great essence of expense report is that it helps in reducing the tax of an organization. The employer knows the exact taxable income of the organization after deducting the expenses shown by the employees in the expense reports. Such expenses are not taxable and eventually the organization has to pay less tax because of less taxable income so generated by it. The employer can also reduce the overall expenses of the organization with the help of expense report because these reports give exact idea what to spend on.
An organization can have correct calculation of net income when it has expense reports readily available. Expense reports are filled up by the employees and they are usually in shape of forms in which the employees input data. The data in the expense reports are expenses made by the employees while representing the organization at any level. These expenses are usually of traveling, of meals and of staying during business tours. Usually the employees pay these expenses from their pockets and they get reimbursed by the employer for the same after filing the expense report.
Expense report has great essence for the employer because he/she can keep a track of different kind of expenses made by the employee when such employee is sent with a responsibility. It shows the employer how dedicated and responsible an employee is while representing the organization. When the employee spends wisely it increases the importance of such employee for the organization. The employer gets an idea of giving bonuses and promotion to such kind of employee. So we can say that expense reports can help the employers in evaluating performance of the employees.
Another great essence of expense report is that it helps in reducing the tax of an organization. The employer knows the exact taxable income of the organization after deducting the expenses shown by the employees in the expense reports. Such expenses are not taxable and eventually the organization has to pay less tax because of less taxable income so generated by it. The employer can also reduce the overall expenses of the organization with the help of expense report because these reports give exact idea what to spend on.
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