While corporate focus is assumed to be all about the bottom line, there are further machinations in keeping track of expenses that further impact the actual profit a company sees. Other assumptions include the idea that larger businesses have better staffing in order to task the job of managing expenses to a specific department that will stay vigilant to any corruption. The problem is that oversight for reimbursements, especially those that are travel related can lead to significant consequences.
Along with the dismissal of any employees who are at fault, the company also faces the possibility of an investigative audit and penalties that are related to sales tax recovery. While accounting personnel and CFOs may not be directly at fault for the fraud itself, they are held responsible for keeping track of expenses. This means that fines and even suspensions can be the result from another person’s infraction.
Maintaining Standards In Expense Reporting
Automated and online expense monitoring programs are an ideal way to begin setting stricter protocols for keeping track of expenses. These systems include mobile access, integration of accounts and credit cards, and strictures that can be set for affording approval to any expenditure. Unlike a manual system where data input is reliant upon when documentation is submitted, an automated system already establishes the framework of expectations for how travel and expenses are submitted.
This alone becomes a vital point, since reimbursement fraud is not always considered a real theft by employees. A lack of guidance in regards to accepted charges for reimbursement is the major reason why this attitude is so prevalent with workers. However, automated expense monitoring delineates the boundaries of acceptable spending, and also reinforces appropriate approval of reimbursement. As the guidance of the automated system is learned by employees who do require expense reimbursement, it also supports a company culture that understands the black and white of in-house theft.