EXPENSE ACCOUNT Meaning and
Definition
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An expense account refers to a financial arrangement between an employer and an employee that allows the latter to be reimbursed for costs incurred during the performance of their job duties. It is a system used by organizations to manage and track employee expenses and ensure they are properly recorded for accounting and taxation purposes.
Typically, an employee is assigned an expense account or given a company credit card, enabling them to pay for business-related expenses directly. These expenses may include travel, meals, accommodation, transportation, and other costs that are essential for the individual to fulfill their work responsibilities. The employee then submits documentation, such as receipts, invoices, and expense reports, to their employer for verification and approval.
The purpose of an expense account is to facilitate the smooth functioning of business operations by removing the financial burden on employees for certain necessary expenses. It aims to ensure that employees have the resources they need to carry out their duties effectively without having to use their personal funds. Simultaneously, it establishes a transparent and accountable process for managing and reimbursing work-related expenses, preventing potential misuse or fraudulent claims.
Expense accounts are commonly used in industries with frequent business travel, such as sales, consulting, and client-oriented professions. They are subject to internal policies and guidelines defined by the organization, outlining what expenses are eligible for reimbursement and the specific procedures involved in submitting and approving expense claims.
Common Misspellings for EXPENSE ACCOUNT
- wxpense account
- sxpense account
- dxpense account
- rxpense account
- 4xpense account
- 3xpense account
- ezpense account
- ecpense account
- edpense account
- espense account
- exoense account
- exlense account
- ex-ense account
- ex0ense account
- expwnse account
- expsnse account
- expdnse account
- exprnse account
- exp4nse account
Etymology of EXPENSE ACCOUNT
The word "expense" originates from the Latin word "expensum", which is the past participle of "expendere", meaning "to weigh out" or "to pay out". The term "account" comes from the Latin word "computare", meaning "to calculate" or "to count". Therefore, the combination of "expense" and "account" implies a specific record or calculation of money spent or paid out. The phrase "expense account" was first used in the early 20th century to refer to a financial arrangement where an employee is reimbursed by their employer for business-related expenses incurred during their work.
Idioms with the word EXPENSE ACCOUNT
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pad (one's)/the expense account
To "pad (one's)/the expense account" means to dishonestly inflate or add extra expenses to one's financial records or to an account that is meant to cover business-related expenditures. This idiom is often used sarcastically or metaphorically to imply that someone is intentionally exaggerating or falsifying expenses for personal gain or to take advantage of an allowance.
Similar spelling word for EXPENSE ACCOUNT
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