What are the most common errors and omissions in expense reports for TA?

2 Overlooking subscriptions

Another common error in expense reports for TA is overlooking or forgetting to include subscriptions to TA-related services, platforms, tools, or publications. Subscriptions are recurring expenses that can add up over time and affect your bottom line. They are also deductible as business expenses if they are directly related to your TA activities and income. However, many TA practitioners do not keep track of their subscriptions or do not report them properly in their expense reports. This can result in underreporting or overpaying your expenses, as well as missing out on potential savings or refunds. To avoid this error, you should review your subscriptions regularly and cancel any that you do not use or need. You should also record your subscriptions in your expense reports and provide proof of payment, such as invoices, statements, or receipts.

3 Mixing personal and business expenses

A third common error in expense reports for TA is mixing personal and business expenses. This can happen when you use the same credit card, bank account, or device for both personal and business purposes, or when you travel or entertain for both personal and business reasons. Mixing personal and business expenses can create confusion, errors, and inconsistencies in your expense reports. It can also raise red flags for auditors, regulators, or clients who may question the legitimacy or necessity of your expenses. Moreover, it can expose you to tax liabilities or penalties if you do not separate or allocate your expenses correctly. To avoid this error, you should use separate accounts and devices for personal and business expenses, and keep detailed records of your transactions. You should also follow the rules and guidelines for deducting or reimbursing travel and entertainment expenses, such as the percentage of time spent on business, the purpose and outcome of the activity, and the names and roles of the participants.

4 Ignoring exchange rates

A fourth common error in expense reports for TA is ignoring or miscalculating exchange rates. This can happen when you incur expenses in foreign currencies or when you report your expenses in a different currency than your income. Ignoring or miscalculating exchange rates can lead to inaccurate or inconsistent expense reports, as well as potential losses or gains due to currency fluctuations. It can also affect your tax obligations or benefits, as different currencies may have different tax rates or treatments. To avoid this error, you should use the official or prevailing exchange rate at the time of the transaction or reporting, and provide documentation of the rate used, such as a bank statement, a credit card statement, or a currency converter app. You should also be aware of the tax implications of foreign currency transactions, and consult a tax professional if needed.

5 Failing to update software

A fifth common error in expense reports for TA is failing to update or upgrade your software. Software is an essential tool for TA, as it enables you to access, analyze, and visualize data, as well as to execute trades and strategies. However, software can also become outdated, obsolete, or incompatible with new technologies, regulations, or market conditions. Failing to update or upgrade your software can compromise the quality, reliability, or security of your TA activities and results. It can also expose you to additional costs, risks, or liabilities if your software malfunctions, crashes, or breaches. To avoid this error, you should regularly check for updates or upgrades for your software, and install them as soon as possible. You should also report your software expenses in your expense reports, and provide proof of purchase, installation, or activation, such as a license key, a confirmation email, or a screenshot.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?