If you’re a business owner, you’re already well aware of the numerous things you have to manage in order to keep your business operating at its best. However, what you may not be aware of is just where some of the biggest risks lie. One area that is often overlooked is in the expense reporting of your company and your employees. It’s well worth taking a closer look at expense reports, fraud, and non-compliance if you operate a business of any kind.
Essentially, expense reporting is done to give the business and the government a clear idea as to where money is being spent. Some tax breaks may exist where travel expenses are found, and those tax areas are where the majority of the problems may come from. There are two issues that could arise here: Fraud, and Human Error.
Fraud is more common than many realise, and it’s gotten a good bit of attention in recent months thanks to the investigation into ex-senator Mac Harb and Senator Patrick Brazeau. Both are accused of claiming reimbursement for travel expenses that were actually related to their full-time residences. As a result, they are now facing serious charges that could lead to expensive fines and fees.
If one of your employees makes a simple, honest mistake – or if they outright commit fraud – you could face those expenses as well. Fees for tax-related issues can lead to numerous problems including:
- Heavy fees and fines
- Criminal charges and penalties
- Temporary cessation of business operations
- And more
In fact, many businesses have closed their doors over the last few decades not because of lack of funds, but because of non-compliance issues. And often, those issues are found in the travel expense reporting side of the business.
So what can you do to prevent this problem? One of the best steps will be to invest in good expense report software. These programs are designed to make it easier for you to get accurate information about an employee’s expenses, will reduce human error, help fight fraud, and generally keep your business on the right side of the law.
If you’re concerned about your company, don’t hesitate to find a good online expense report program and invest in it. It’s a smart move that you won’t regret.