How to create an employee expense report that keeps finance happy Lost receipts, late claims and “accidental” upgrades – solved. Source: Pexels{Alt text: An overhead shot of an employee going through messy paperwork and receipts.} Expense reports are the form nobody loves. For employees, they’re a chore – digging through old emails for digital receipts or tipping a shoebox of crumpled paper onto the desk at month-end. For finance teams, they’re a test of patience: late submissions, vague explanations (“miscellaneous”) or the occasional attempt to slip in a lobster dinner under “client meeting”. And yet, expense reports are so important. They’re how companies keep travel spend under control, stay compliant with tax rules and make sure employees aren’t left out of pocket for weeks after a work trip. Without them, the books don’t balance, audits get messy and budgets become educated guesses. On the flip side, when expenses aren’t logged properly – your employees miss out too. In fact, a study of 2,000 employed adults published last year found 22% have not claimed some costs back from their employer since August 2023. And nothing breeds quiet resentment faster than staff feeling they’ve had to cover company costs out of their own pocket. Below, we’re breaking down how expense reports should work, why they so often frustrate and how to build a process that respects both employee time and company budgets. Table of Content What is an employee expense report? 2 Why expense reports matter more than you think 3 The pain points employees face 3 What should an employee expense report include? 4 Common pitfalls with an employee expense report 6 How to create a foolproof employee expense report 7 Tools & tech that make expense reporting easier 8 Best practices for the everyone involved 9 Employee expense report template 10 Final thoughts 11 What is an employee expense report? At its core, an employee expense report is just a record of money spent on behalf of the business. Consider it as the bridge between the employee who’s paid out of pocket and the finance team responsible for balancing the books.   It usually includes the essentials: who made the claim, when and where it was spent, what it was for, how much it cost and proof in the form of receipts. In plain terms: I spent £X on Y for Z reason – please reimburse me. Expense reports exist for three main reasons: Accountability: to make sure company money is used responsibly. Compliance: to keep everything audit-ready and tax-compliant. Fairness: to ensure employees aren’t left footing the bill for legitimate business costs. Without them, expense claims turn into an informal, unpredictable process – and that’s where frustration starts to creep in. Why expense reports matter more than you think On the surface, an expense report looks like paperwork. But behind the scenes, it’s a key lever for financial control. Reports give companies visibility on how money is being spent day to day – from travel to client entertainment – and that visibility translates into better forecasting, fewer surprises and smoother audits. They also protect against small leaks that scale quickly. Take a simple taxi ride: if one £100 trip goes unreported, it’s frustrating but manageable. If 1,000 employees do the same over the course of a year, that’s £100,000 quietly disappearing from the balance sheet. And it’s not just small leaks, though. Expense fraud is a real risk, particularly across the pond. An American study by the Association of Certified Fraud Examiners (ACFE) found that organisations lose around 5% of revenue to expense fraud every year, with a median loss of $145,000 per incident. The longer it goes unnoticed, the more damaging it becomes. In other words: expense reports aren’t just about paying people back. They’re about keeping cash flow predictable, guaranteeing compliance with tax authorities and helping leaders understand where budgets are actually going. The pain points employees face Source: Pexels{Alt text: A woman looking at an employee expense report with a confused expression.} Of course, none of that changes the fact that employees often dread the process. Submitting an expense report can feel like a part-time job: Receipts get lost in taxis or left in hotel bins. Clunky software means hours of manual data entry.  Reimbursements can take weeks, leaving employees out of pocket long after the trip is over. Imagine paying £500 upfront for a hotel on your personal card, only to wait six weeks for the reimbursement to land. It is not an edge case either – a 2025 survey of 2,000 UK employees found that 43% had experienced genuine financial difficulty while waiting to be reimbursed. For the employee, that’s more than an inconvenience; it’s a serious strain. For finance, it’s a reputational issue: a company that can’t pay people back quickly undermines trust. That’s why designing an expense reporting process that is clear, fair and fast is crucial. It’s not just a case of compliance or cash flow. It’s about respect for the people who are doing their jobs – often while travelling, juggling clients or working long hours away from home. What should an employee expense report include?</h1 Done right, an expense report is a complete story of who spent what, why, and how it fits into company rules. Here’s what a solid report should cover. Looking for comfortable accommodation and simple expense management tailored specifically for the mobile workforce? Discover how Roomex can streamline your travel needs, offering hassle-free booking and expense solutions designed to keep your team focused on the job. Try Roomex today and experience the difference in efficiency and convenience for your mobile workforce. Request a Demo Employee details Start with the basics: name, department, role, and the manager who will sign off. It sounds obvious, but without it finance has to play detective when reconciling. ✗ “Submitted by: J. Smith.” (Which J. Smith? The company has three.) ✔ “Submitted by: Jane Smith, Marketing Department, approved by Alex Turner (Head of Marketing).” Clarity here saves time later..