Whether it is intentional or not, expenses get fudged from time to time. Perhaps it is an employee trying to interpret the perks of the job a little too liberally, or it is someone who files expenses incorrectly. Either way, you want to make sure that your employees are spending the right amount of money, at the right times and for the right purpose. This ensures that the business runs as smoothly as possible and it prevents fraud, whether it is intentional or not. There is one easy way to help ensure that your employees are telling the truth about their expenses – receipts.
Receipts are hard evidence of money spent. An employee is much less likely to bend the rules of their expense report if they are required to supply receipts. This is an easy concept to employ, but the logistics of it all get a little more complicated in the digital age.
It seems that everything is done instantly and over the Internet these days. Many businesses would like to start handing out digital receipts and cutting edge companies are using expense report software with digital reports. But receiving a digital copy of a cold, hard receipt it easier than you think.
Included in the very best expense report software is the ability to digitalize receipts using a smart phone. All employees, for the sake of the business, should be carrying around a smart phone with a camera. It doesn’t matter if the camera on the phone is advanced or not; it just needs to be able to take a picture. This is where the genius of good expense reporting software kicks in.
Great expense report software is tethered to a mobile app that all employees tote around on their smart phone. Uploading expense updates is simple, quick and convenient. Say the employee is at a business lunch. The employee receives the receipt, gives the expense a name in the mobile app, takes a photo of the receipt and uploads it to the software cloud. Now it is permanently installed on the software. It is as good as a hard receipt.
The convenience and ease of the process prevents two types of employees from falsifying expense reports. It prevents the person who makes unintentional errors. This is the type of employee that does not keep very good track of his expenses. When he returns home from a business trip, he generally sits down and ballparks some of the expenses; including what receipts he may have had. But if you put this technology into this employees hands, show them how to use it and demand instant updates, then you’ll see reporting errors decrease immediately.
Then there is the employee who takes advantage of “business” spending. Perhaps they include a night out on the expense report. But if they must upload digital receipts at the time of purchase, they will be deterred from taking advantage of the company; no matter how small the infraction. Plus, the app saves you precious time.