3 Red Flags to Look for When Auditing Expense Reports

Finance and accounting analysts and managers have a lot on their plate. They must keep up with expenses for all employees, including upper-level managers. Fraud can be committed on any level, but it can be kept under control by looking for three items when reviewing expense reports. Overspending, unreported expenses, and unrelated business expenses, are all items to keep a close eye on.

1. Overspending

Does one employee constantly spend more money than other employees? Have there been previous trips to the destination, which stayed within budget? Greed, entitlement or simply not understanding company expense report policy best practices can all contribute to overspending. Taking the extra time to check for overspending will allow your expense manager to catch infractions and make attempts to correct the situation.

2. Unreported Expenses

Do the numbers just not add up? Losing a receipt is never acceptable, but accidents do happen. Once, or twice, it may be acceptable by company standards, but if unreported expenses become the norm, the situation should be investigated more closely. Expense fraud can quickly escalate, especially in complicated scenarios like travel expenses. Travel expenses can complicate expense reports, but by keeping a close eye on unreported expenses, business managers can stop fraud quickly.

3. Unrelated Business Expenses

Is that a $250 room service charge, written off as lodging, and the stay was only for one night? This is an unacceptable occurrence in most cases and it shows the importance of reviewing all expenses, no matter how small. If every employee begins spending an extra $100 per trip, the company would be forced to seriously overhaul their spending policies.

Going Automated Can Make Life Easier

Adopting automated expense management software can drastically reduce the workload and stress placed upon auditors. Receipts can be easily uploaded, within seconds, and approvals for expenses can quickly be obtained. Credit card charges can be integrated into the system, so all expenses will be at your fingertips, always. Automated expense reporting is far more than an added convenience; it is a necessity in today’s workforce. The quicker you catch discrepancies, the faster your company will stop losing money.

Request your ExpensePoint demo today and discover how easy and efficient expense management can truly be.