Sending an invoice is a professional way that is used by businesses to request payment. Invoices become the proof that the payment was requested, services were provided and the transaction took place. This is the reason, one cannot even think of running a business without using an invoice.
An expense report is the same as an invoice as it allows people to see how many expenses they have incurred. There are also a few differences between invoices and expense reports. However, they are considered the same in a variety of situations as they serve the same purpose.
What is an expense report invoice?
It is an accounting-related business document that people use when they have to report the expenses incurred. Usually, businesses allow the employee to spend money for work purposes and then create an expense report so that the company can see how much money the employee has spent and where. After that, the employee went through the process of reimbursement.
Expense Report Invoice File: 84 KB
What does an expense report invoice do?
This document keeps the record of all the expenses of the business, expenses of a particular department in a business or an individual. Employees often use them whenever they have to claim money for the costs they incurred.
The expense report is like a form that contains multiple fields. Employees have to fill out this form, provide information, and then submit it to their employer. The employee is often asked to attach some useful and necessary documents also with this invoice.
For example, an employee is often required to attach the receipt of the expense for which he has paid. It is proof that the employee is not lying and it will also become easy for the company to perform verification and investigation before releasing the money to the employee.
What is the format of the expense report bill?
Usually, companies have a predetermined format that they usually like to follow. Employees of the company are also aware of the predetermined format of the invoice and they keep all the required information in hand while filling out the expenses report.
The format of the expense report invoice is the same as other invoices. The only difference lies in how it is used. When an employee has to input the expense details from various sources, it becomes a combination of various receipts and invoices.
Here are some basic details that one can expect to see in the invoice:
Information about the company:
Although the invoice is used by the employee, it is always issued by the company where the employee works. In other words, it always belongs to that company that has to pay that employee. Considering this, the name and logo of the company are always mentioned in the invoice.
Date of the invoice issuance:
The date on which the invoice is being created is always mentioned because it makes it easy for the company to keep a record of when the payment was requested. If the expenses did not occur on the same date, the employee will have to create a complete timeline that points to different expenses incurred on different dates.
Details of expenses:
Since this is an expense report, the most important part of this document is the description of all the expenditures for which this document has been created. The description in the invoice should be given briefly as it does not have much space and it cannot be turned into a long document full of expense details.
Total and subtotal:
Just like a conventional invoice, there is a section at the end where the total and subtotal amount to be paid by the company to the service provider of the employee is mentioned. The total amount is mentioned separately and then the amount of tax imposed on the total bill is mentioned separately to show that what the service provider is offering, he has to pay tax on it also.
Terms and conditions:
Invoices also mention the terms and conditions based on which they are issued to the company. These conditions are necessary to be fulfilled otherwise, a dispute may arise. Anyone signing the invoice should read these terms and conditions carefully.