Expense report accounting is the practice of tracking, categorizing and reporting expense-related activity. It helps businesses keep an accurate record of money spent, as well as manage costs and budgets. This process involves creating an expense report for each project or expenditure, which includes details such as purchase date, vendor, quantity and cost. Expense reports are used to provide a clear picture of where the company stands financially, allowing business owners to make informed decisions that drive growth and maximize profits. With effective expense report accounting, you’ll have the data needed to make smart investments, budget accordingly and avoid any unwanted surprises.