Understanding Itemized Receipts

A detailed receipt is a perfect tool for a full financial reporting on all transactions regarding business travel service. It discloses every aspect of an employee's expenses what’s extremely important for financial planning and tax compliance. 

At the same time an itemized receipt allows companies to check the use of corporate budgets and optimize business trip organization. Let’s figure out the details. 

What is an itemized receipt?

An itemized receipt is a document outlining every part of a professional travel including business class flights, booking accommodation, car rental, etc. independently. Usually a credit card shows only a total sum of money, while an itemized receipt work more precisely. There you’ll see: 

• a list of paid items;
• date and time of transaction;
• the amount of purchases; 
• single prices and total sum of money; 
• taxes (if they’re prescribed). 

Itemized receipt vs regular receipt

Ordinary receipt and itemized one have several important similarities. In both documents you’ll deal with the following features: 

• a full sum of operation;
• a day, month and year of transaction; 
• time of payment;
• the name of provider made transaction;
• a number of receipt;
• payment method (cash, non-cash, etc.). 

In practice, this isn’t a full scope of similarities between two types of receipts. You can also see the rules of return and data for contact including email, phone number, etc.

Furthermore, itemized receipt usually includes more specific information taking business tourism services to a higher level. You can rely on: 

• detailed cost item in every single payment; 
• taxes for every purchase and their total sum. 

Why is an automatized receipt so important in business?

The itemized receipts meaning in business is difficult to overrate. Usually one payment consists of several parts and you need to report on them separately for accounting and tax regulations. Furthermore, only receipt for every transaction with a corporate card may prove the correspondence of expenses on business hotel or flights to a company’s financial plan. 

Above that, employers don't always grant their workers a corporate credit card. What to do in this situation? To spend your own money and demand cost recovery. If you have an itemized receipt, there'll be no problems with reimbursement. A detailed proof of transactions confirm where and how you spent money. 

An employer may also benefit from itemization of receipts. Every item is mentioned individually which makes a behavior of an employee clear for a manager. If any buying doesn’t match company’s policy, employees won’t be rewarded money and businesses won’t incur extra expenses. 

Undoubtedly, itemized receipts provide an opportunity to follow the most efficient practices and reach a new level of profitability within business. They highlight to employees the importance of reporting on expenses and checking the accuracy of information in receipts. In addition, they’re an innovative instrument in fraud reduction. It’s enough to check itemization debit to see whether all the money was indeed spent on the ticket for first class flight or transaction also include unauthorized charges.