Expense Analysis Is A Great Anti-Fraud Tool

Expense Analysis Is A Great Anti-Fraud Tool

Expense Analysis Is A Great Anti-Fraud ToolOne of the most unpleasant aspects of an employee that makes false expense reports is the lack of ethics or concern that person has for the company he or she is taking advantage of. But, in another sense, that same lack of respect is one of the great weaknesses that will eventually betray a fraudulent employee. All it takes is a little diligence from the financial department and the pride of the fraudulent employee to eventually uncover the problem.

Software Gives You The Tools

In one sense, it’s very difficult for any “serial” fraud expense report employee to stay undiscovered for long, because the very act of repeatedly sending in falsified expense reports builds up the mountain of evidence that leads to inevitable discovery. Someone exploiting the system once might get away with it if they have the paranoia to never attempt it again. Someone that does it on a regular basis keeps providing evidence in form of reports.

With modern expense report software, the complex nature of the software itself makes it difficult for produce false receipts, but beyond that, even large expenditures on credit cards, or other consistent high amounts of spending accumulate.

With financial staff analyzing each report as it is filed, and making comparisons with other employees, as well as the past chronic history of the one specific, suspected employee, it becomes very easy to spot a pattern. The ability of expense report software to store and present spending information for analysis makes it much easier for management to not just have good information to make decisions about how to manage resources, it can show people exactly what’s going on with how employees claim to use resources over a sustained period of time.

And that means that someone that is regularly abusing a system is leaving a trail for diligent, intelligent staff to find.