An expense statement template is also known as income statement, is essentially a summarized report about a certain company’s income, outgoing, profit, loss and expenses in a certain time period. Moreover, expense statement templates are used by companies to keep an open eye on their financial status. These statements are usually summarized by the end of the month or year by the finance management team or the accounting staff. They conduct various analysis to check the expenses of a company, profits and loss and income amounts. This is an essential step to focus on for the growth of your organization financially.
Importance of Expense Statement
Expense statements are summarized in conjunction with the company’s various expense reports such as reimbursement expense sheets, petty expense sheet and office expense sheet. This way at the end of the month the finance management team can get a total overview of every single expense made by the company and list it in its category. Then the expense statement is made, it focuses on various aspects of the company’s financial statement. Such as all the hidden extra expense that need to be eliminated, the investments that are proving to be beneficial to the company’s monthly income, the expenses that need to be more focused on and employee reimbursement amount. It is a broad and in depth inspection of an organization’s monthly expenses.
How to Prepare An Expense Statement?
Now we need to take a look at how a company’s finance team makes an effective expense statement and brings it to use. The expense statement format is not much different from that of any general expense sheet. In most organizations the finance team is provided the format for the expense statement, the same format is used every month. This helps the team to save the time in making their own format (company name, and its logo). They can easily get to work after writing the specific time period whose expense statement is being listed. Some other things to start your expense statement with are as follows;
1. The name of the employee who made the expense statement.
2. The name of his department, contact information, name of his manager.
3. First a list of all the income sources of the company, their description, category, amounts and total sum.
4. A different list of all the expenditures made by the company. The name of all the expenses, their source, description, method of payment (cash, credit, debit), amount of payment after including the tax.
5. Over all, total amount spent on the expenses along with net expense and gross expense.
6. At the end of the statement, the difference in the amount of income and outgoing expenses.
The expense statement template is forwarded to the higher authority for further inspection and approval. After the approval, it is used to plan for the coming month’s expenses and manage the company’s budget accordingly. All the while keeping in mind to exclude the unimportant expenses and focusing more on the profitable expenses.
Template for Expense Statement
