What is an expense report? Definition
Are you looking for the definition of an expense claim and an example of how to standardize your documents internally?
You've come to the right place! And if you'd like to go further and find out how to handle them, you'll find a few useful links along the way.
What is an expense claim?
The expense claim: definition
Addressed to the company's accounting or administrative department, an expense claim is a form, electronic or otherwise, used by employees (or similar) to claim reimbursement of their business expenses.
The document is supplied by the department in question, to ensure consistency, standardization and ease of processing.
Who can apply?
All types of organization (associations, SMEs, start-ups, major groups, etc.) are eligible for reimbursement of business expenses:
- non-managerial employees,
- executives
- executives
- volunteers.
Expense reimbursement is a right: it is not mandatory for the employment contract to stipulate that expenses will be reimbursed.
However, when the contract is negotiated and signed, the employer can propose either a reimbursement based on actual expenses, or a lump-sum payment.
The different types of expense claims
An expense claim can cover several types of business expenses, or focus on just one, as with :
- mileage expenses,
- meal expenses, etc.
Expense claim template
To give you a better idea of what an expense report is, here's a sample:
Actual or flat-rate expenses: when does the expense claim apply?
If the company covers actual expenses, it reimburses the exact amount incurred.
This involves issuing an expense statement and presenting supporting documents for all expenses incurred.
If the lump-sum option is chosen (in only 5% of cases, according to a wity.fr study), the employer pays a lump-sum allowance that includes all potential accommodation, meal and travel expenses.
This is a more flexible solution, requiring no filling in or justification of expenses, and no processing of expense claims and related supporting documents.