For any business, there are always concerns regarding how much in-company spending is happening, and how this will affect the overall progress of growth based on profits. While a focus on spending can include managing the costs of operation, these expenses include travel costs that are incurred when employees need to attend meetings, conferences, or reconnaissance trips which should lead to increasing returns through connections that are made.
However, the most common area where businesses leak much of their money is on travel vouchers and compensations. The use of an expense program that can link spending and receipt information directly to online access by the financial department can considerably facilitate catching any activities that could be costing the company thousands or more.
Why Travel Expenses Get So High
Traveling for business is appreciated by many employees, since it gives them an opportunity to see new places and feel as though they are earning a bit of a holiday, even though it is a job excursion. The trouble arises when this feeling of freedom is abused, and charges which are questionable are made to the corporate account. With an online expense program, these trends are not only charted, but are also caught as they happen, instead of months later.
Another major issue that spurs excess spending on work travel is the fact that employees can also feel as though these demands are above and beyond the call of duty. When this is the situation, exorbitant travel spending is a form of corporate sabotage that results from employees feeling as though they are owed these extra funds for the efforts of travel.
Along with charges that are simply improper spending, such as high end dining or hotel accommodations, another common practice that is seen with travel expenses is the alteration of receipt information. Online expense programs provide the financial department with immediate access to this type of information, and can be utilized even while the employee is still on the road. This also means that immediate approval or rejection of charges is possible, but it also means that expense programs afford CFOs the ability to monitor these types of spending trends in a very organized fashion.
The Trouble With Confrontation
Although the actual costs that are incurred through these liberties that are taken are already impactful to the company as a whole, there is another aspect of these situations that is also necessary to address. In any situation where a misuse of corporate funds has occurred, the crime of theft has also occurred. In approaching employees about this, accurate and detailed documentation is also required before a meeting. Expense programs that are managed through specific software also afford the ease of generation of reports that show the actual fraud, as well as any patterns of this behavior.
In order to ensure that funds are not being drained on unnecessary travel expenses, accounting departments and even small business owners, need to remain vigilant about these habits. The facilitating aspect of expense programs that can supply real time approval abilities and can also filter reports to uncover spending trends becomes a vital tool in maintaining the fiscal growth of any company.