Your company relies on a lot of different things in order to stay in the black on its finances. While things like marketing, sales, and employee relations are all important, there’s another aspect of doing business you’ll need to pay attention to as well – the way you handle your company’s expense reporting.
It may sound like a small matter, but the reality is that your expense claims will have a major impact on your business in more ways than you might think. In fact, recent studies revealed some very alarming figures. Here’s a look at some of the different ways that shoddily managing your expense reporting could impact your business. The info was gathered by analyzing expense reports for more than 160,000 employees throughout many businesses.
- Suspicious expenses turned in on claims reached around $15 million.
- Around 6.3% of transactions were found to be non-compliant.
- Of those, 19% were found to be fraudulent claims.
- A total of 13.7 million dollars in fraudulent transactions occurred during a period of just three months.
- 82% of the expenses found to be fraudulent were the result of just 5% of the employees looked at.
Fraud and simple human errors are to blame for these high costs, but the financial cost to your company goes beyond just the extra money you end up paying out. Along with it, you might have to pay heavy fines if you’re found to be noncompliant with your finances. Add in things like tax issues, and it becomes clear that you need to get the most accurate results from your expense reporting while also ensuring that fraud isn’t an issue.
The best way to go about doing so is to invest in good expense report software. Good programs will allow you to automate most aspects of the process and will help reduce fraud and errors in a big way. Since expenses are approved automatically, it only takes a few seconds for each claim to be verified and posted. Those claims that aren’t approved will be rejected, though you can review and manually confirm claims that you feel are indeed applicable to an employee’s expenses.
You’ll want to spend some time looking at the different options available to you for managing your expense reports. Good software will feature mobile access, credit card integration, online access, and full automation. Take your time, find the right expense reporting program for your needs, and you should be able to get the kind of results that you deserve.