Over the past decade, the incidence of reimbursement fraud has increased by nearly a third, which also means that companies of all sizes are faced with this potential threat to their organizational viability. Although recognizing that this possibility exists for personnel to take advantage of the corporation is an initial step in finding a solution to the problem, managing expenses with a greater clarity of process can also be important for managers to learn.
Although organizations of a public and private nature are expanding their efforts to maximize their actual return on investment through better measures to manage expenses, the deterrence, prevention, and detection of fraud, can also include changes to operational procedures and policies, by specifically investing in software and regulation systems that are designed to reduce the impact of reimbursement fraud.
When Given The Chance …
Unfortunately, the persistence and rise of reimbursement fraud does come from the fact that employees who are able to submit vouchers may also feel as though the demands of travel entitle them to greater perks. This can also present a difficult situation in managing expenses, since padding in these cases is not an outright falsification, but it is still a misuse of appropriate spending within the company parameters.
This also means that along with a better policy for managing expenses, software settings and mobile access can help to support these guidelines for employees.
- Use software for managing expenses to create the reimbursement policy – automated systems can help to reduce confusion regarding what is approved, as real time and mobile access to account verification is possible.
- Technology can teach people – from a supervisory staff standpoint, automated means of managing expenses also creates a distinct structure for training managers to know what is acceptable and to be able to distinguish possible infractions.
- Spreadsheets for managing expenses can be customized for flagging questionable activities – this not only helps manager to distinguish issues, but further reinforces the importance of paying attention to spending and reimbursement details.
- Integrate corporate cards with software for managing expenses – this can not only act as a large deterrent to reimbursement fraud, but also lets managers immediately become alerted of any questionable actions within the corporate account.