When you take a close look at your business, you’ll likely spend some time trying to figure out what areas can improve your bottom line. One that is well worth taking some time with is in your employee expense report system. The way you manage expenses could actually be costing you. Consider that a recent study found nearly 14 million dollars in fraudulent transactions when looking at more than 160,000 traveling professionals. That’s a huge number, and it highlights the fact that even one employee making fraudulent claims could be costing you big.
Fraud is a sad reality, and there are numerous ways to combat it. With a few tips and a good expense report program, you should be able to significantly reduce the incidence of fraud within your business. Here are some steps to keep in mind.
- Always use your expense report program’s data report feature. This can give you a detailed look at different employee related expenses. You can look at departments or individuals, and doing so will help you spot whether or not a particular person is spending far more than others. If so, it may be worth taking a closer look at their expenses.
- Be sure to review the company expense policy with your team. In some cases, fraud isn’t actually a willful act – employees are just making claims that they thought were legitimate. Make sure you go over the policies with your employees to help them understand more about what is and what isn’t allowed.
- Try to automate as much as you can. New studies found that about 90% of all spreadsheets and forms within the expense account departments of businesses had errors. And buried within those errors could be cases of willful fraud, masking as an honest mistake. Automation takes away the ability to make mistakes and to willfully enter fraudulent info. Instead, everything is handled by the system instead of through manual processes. This can help tremendously.
In short, if you let your program automate as much as possible and spend some time each month or each quarter taking a closer look at expense report data, you should be able to get a clear idea as to whether or not fraud exists within your travel expenses. Eliminating it can help increase your company’s bottom line and help drive it forwards into the future.