Did you know that a recent estimate suggests that about 27% of executives commit expense fraud at some point, and that the number is even higher among travelling employees like salespeople? Add that to the fact that expense fraud can bring noncompliance, cost your company thousands or even millions, and literally cause you to go out of business, and it becomes clear that there are a lot of reasons to focus on fighting fraud. One tool that could surprise you is the use of online expense reports.
Not convinced? There are several key reasons that you should be. Here’s a quick look at some of the big ways online expense reports can have a direct impact on fighting fraud.
- The biggest way is that it allows for real time uploading of expenses instead of forcing your team to manage mountains of paperwork all at once. When your employees upload expenses as they incur them, it’s much easier to see who is spending what and ensure that the expenses are valid.
- Another key reason that online expense reports help is by automating much more of the process. Once you set up the protocols, expenses that are submitted will be automatically vetted by the system. Your expense management team will still provide final approval, but with automation in place it’s much harder for invalid claims to slip past the system.
- Data reports also let you take a much clearer look at who is spending what, and with online expense reports you can view them while an employee is still in the field. Just a couple of mouse clicks will give you an in-depth look at everything about a particular area of spending, from company-wide to departmental to individual. This lets you see if something looks fishy and could help you identify fraud as it’s occurring.
- Online expense reports also help fight fraud simply by letting your team know that it’s harder to get away with it. Discouraging the issue before it happens is easier than stamping it out, and the right programs can handle this excellently.
Of course, sometimes what appears to be fraud is really just human error. And with online expense reports, those honest mistakes are also reduced tremendously. Training your team to understand all of the regulations and policies you have in place will help, but the right tools can help you even more. Be sure to look into what online options offer to get more accurate expense management results.