Companies today have a lot of different issues that they have to deal with in order to properly stay afloat. Managing things like marketing, human resources, and developing business strategies are alone enough to take up most of your time and energy. Companies with traveling employees have another issue to deal with as well – managing employee travel expenses. Keeping track of these things can be a lot of work, but it’s well worth doing. Employee expense report fraud has much higher costs than many people realize.
If you’re not convinced that expense report fraud is a serious issue, taking a closer look is a good idea. In fact, a new study that looked into the reports of more than 160,000 traveling employees found some troubling numbers. Chief among them? Over the course of just three months, about $13.7 million in fraudulent transactions occurred. That’s a huge number, and sheds a light on just how important managing expenses can be.
To help understand more about the total, look at some of the other statistics that were found in the study.
- Misuse of policies totaled up to $14.9 million
- 6.3% of all transactions were found to be non-compliant
- 19% of all transactions were found to be outright fraudulent
- Duplicate transactions were very common, making up $3.8 million
- Around 5% of employees were responsible for around 82% of all fraudulent expenses
Those numbers are very large, and should be enough to alarm anyone. To help prevent fraud from becoming a big issue in your company, you need to take a closer look at your expense report management process. In particular, you should consider adding new tools to help you manage the process. A good expense report software solution can help tremendously.
These programs can reduce the incidence of fraud, improve overall accuracy, and even help your company stay compliant throughout the year. The right program can help keep you from being a company included in the stats above, and make sure that you have the best chances of staying in the black throughout the future.